Magic Land in “Karavan”: The first launch, The human factor and the new horizons
The name of the store chain:
«Karavan», Penza
The amount of stores
85 (45 discount)
Duration
2 month
Involvement
43%
Increasing of sales volume
8%
When price competition goes crazy and everyone talks about “the new loyalty” (or its absence), it’s time for retailers to think the new formats of attracting customers out. It’s good when there are several million to spend to organize the promo, but what to do if there is no such possibility?
Around 300 thousand $ is the starting price for the promo of the major brands. For example, “Disney” releases its new film and lets retails to “buy” its characters as the subject of their special offer at the same time.

Local store chains must compete with the federal retails in situation of a small budget. The local store chains can’t afford a well-known media franchise unlike the federal retails which can spend millions on the franchises to use it in the promos.

How is this problem solved? Very successfully sometimes. Demonstrative example is a promo of 2019 in the “Karavan” store chain called Magic Land and conducted by Retail Loyalty. Its results are equal and in some ways better than average results of the same promos.

Read more about promo Magic Land here.
How it works
The mechanic of the promo is simple. The customer got a magnet of the character when a purchase for 8$ in the check was made or if the sponsor’s commodity was bought. The presents were given at the cash desk so it was unnecessary for customers to do something else.

It’s important to mention that magnets were given in the opaque flow-pack. The element of luck and unpredictable appeared. Also the booklet of all collectable characters was given. There was a web site with a description of characters and promo mechanic.

A child opened the flow-pack right by the cash desk. There were two possibilities: a child either exulted if the character was new for the collection or asked parents to get back to the store to make a new purchase to get another flow-pack if the character already was in the collection.
The audience of the promo is children. In Magic Land, the focus shifts from the buyer to the consumer, from the one who pays, to the one who uses the result of the promo. In this case the increasing of amount of consumers affected the buying process and the average check price.
“If the children are captivated by the promo, they start to act as an influence agents. The children start to influence on their relatives. Relatives increase the price in the check to satisfy the agents’ demands”
said Eugenia Burlyukina the “Karavan” marketing manager.
Despite we oriented on the children of age from 4 to 8, in fact the younger and older children became the influence agents too.
Who this promo about
The residents of “magic land” were created long before the promo was being developed. They were created by the “Retail Loyalty” specialists as the part of working on augmented reality.

The characters were set in the united universe. The characters become alive using the special mobile application which was developed directly for loyalty campaign. The characters are divided into 3 collections – bronze, silver and gold. The bronze ones, which are more common, have only the animation, but golden and some of the silver ones have their own games.
The augmented reality is the WOW effect, one of the main drivers of the promo. Customers are not get used to “live” pictures yet, but for the modern children who always carry their gadgets around, this miracle exists in the common environment.
Characteristic of Magic Land the promo

  • Collectable: a customer is offered with a new valuable proposal (the magnet in this case) for the spent money.
  • Non-price: a customer gets extra bonuses for the purchased goods, the price factor does not play a role.
  • Gamified: the game mechanic aimed at the children audience
HOW THE PROBLEMS WERE SOLVED
When our unique promo was launched there were some questions and troubles that we had to solve in the process.

  • Recognizability. One of the main conditions for such promos is recognizable characters. Children and parents are more motivated to participate in promo, when they have already known about characters. Unfortunate, the well-known characters are extremely expensive so we decided to take a risk.
    In practice it turned that recognizability was not a problem. Children collected the magnets of new characters with a great enthusiasm.
  • Human factor. At the very beginning there was a trouble with giving magnets away. The cashiers did not have a standard giving mechanic. To prevent such trouble, Retail Loyalty the company developed and inserted a new giving away script. It was at the cashier's working place and consisted of phrases which were needed to be repeated.
    Also not every store set the promotional materials up on time. Retail Loyalty took control of the shopping room layout with the special developed software. After applying such actions the campaign became more active.
  • Collectors’ negative. Not everyone was satisfied with the factor of unpredictability. Some customers even complained that they can’t collect the full collection of the characters. The exchange days were held, for the buyers to exchange their magnets with others. It removed the negative and increased the sale. Exchanging people made additional purchases.
RESULTS
Such promos are held in order to increase the average price in the check by increasing purchases frequency, the volume and the cost of purchases. Retail Loyalty specialists have created a new value without affecting the technical process.

Despite the using new characters was a risk the promo was successful. The volume of magnets that were planned to give away for 2 month ran out in 1.5 month. In absolute majority the feedback was positive. The promo was profitable. The sale volume increased for 8% for the period of promo. According to the official states such campaigns increase federal store chains’ sale volume for 3%. Almost 3 times more than average index is an impressive result.

This promo campaign allowed the regional store chain to stand alongside with federal ones.
“The full kit”: support by "Retail Loyalty" the developer of the promo

- printing products: design, manufacture and control of advertising for walls, floor and ceiling;

- website of full terms of the promotion;

- easy-to-understand video telling the youngest customers about promo mechanic;

- informing the store chain staff about the campaign: retreat training seminar for employees;

- media plan and content plan for social networks for the duration of the promo;

- control and constant interaction with the company's marketer;

- summarizing and analyzing the results using a survey of buyers by promoters at each stage of promotional campaign.
The promo is being going ahead. Right now it is being held in other regional store chains. Despite the federal store chains are interested in Magic Land, Retail Loyalty is focused on the regional store chains. Read more about insertion in others cases.