
Creativity in sales promotion has always been about coming up with an innovative theme, a great headline and high-impact visuals that excite both consumers and retailers - and lead to a significant sales increase for the brand.
While there will always be a need for creative excellence in sales promotion, it's getting harder to apply traditional creative skills in the current economic climate. Retailers are tightening the screw. They're demanding more and more price-based offers from brands instead of innovative ‘added value' promotions.
Just look at the number of ‘money off next purchase' coupons and cash-back promotions in the high street. And redemption levels are at an all-time high, as highlighted by .
As a result, it's becoming increasingly important to show greater creativity in the ‘back office' - for example, when devising a promotion's terms and conditions - in order to reduce costs without diminishing the headline offer.
Consumers are entertained by creative ideas and clever copywriting. But the single element that makes them respond instantly to a promotion is the perceived benefit - the headline offer. A creative ‘engine room' solution - such as a few changes to the redemption conditions - won't affect the integrity of a compelling offer, but it can have a phenomenal impact on response levels and hence the budget. Same idea. Same results. Less cost.
This kind of creativity is more tangible than traditional creative thinking and, in the increasingly aggressive (and sometimes hostile) world of retailer-led promotions, it's also measurable.
While ‘engine room' creativity helps to deliver the headlines that generate sales, it can also ensure that a promoter doesn't make it too easy for people to play, claim or redeem once they've made a purchase. After all, the main purpose of a promotion is to increase sales of the brand, not to distribute promotional merchandise.
When it comes to reducing actual redemptions, it is possible to play on consumer ‘laziness' by giving purchasers a little more work to do in order to make a claim. By printing a token away from a box flap, for example, or by requesting an SAE, or asking consumers to go online and input a unique code to check whether they've won.
Take the classic ‘get your money back' concept. It's a good headline, and attracts the consumer's attention at the point of purchase. But it can be very expensive to run.
For frozen food brand Aunt Bessie's, for example, VCG used a little ‘engine room' creativity and tweaked the terms of the offer. Purchasers were able to get their cash back in the usual way, or they could claim twice the amount back in Aunt Bessie's ‘money off' coupons. A large proportion of claimants opted for the coupons.
Pizza brand Chicago Town recently ran a promotion that allowed purchasers to get their money back if they didn't agree with the on-pack claim that its pizzas are tastier than Pizza Hut or Domino's. Again, VCG changed the standard ‘money back' terms by asking purchasers to go online to claim their refund. When claimants visited the Chicago Town web site, they were tempted away from asking for their money back when they found that they could take advantage of a selection of third-party self-funded schemes instead. These offers were worth more than twice as much as the cash-back.
In addition, both the Aunt Bessie's and Chicago Town promotions were covered by a fixed fee guarantee - thus ensuring that there was no possibility of the budget being exceeded because of over-redemption. In both cases, the fixed fee was calculated on the basis of the likely reduced cost of consumer claims.
In these cost-conscious times, a little creativity behind the scenes can be just as important to the success of a promotion as having a great theme and exciting visuals. And it helps to keep big headlines affordable.