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”
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