- September 8th, 2014
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Smartphones are transforming the shopping experience, for better or worse. Stats show five out of 10 smartphone users reviewing product descriptions on their mobile phone before they enter a store. So why put the ingredients on the package if the consumer is reading them on their phones, reviewing them against competitor’s products, comparison pricing them and down loading coupons as a value proposition? It would seem that the retailer is just a warehouse and the shopping experience including product discovery happens on the handset.
SmartPhone media promises to increase purchase intent and promote store traffic to a CPG retail site or brick and mortar store. True to form, research firm InsightExpress noted that mobile ads were nearly five times more effective than web based display and search…despite the smaller format…but the coincidence of credit card, hand and cell phone has proven to be an effective launch pad.
The problem is this, the platform is effective with incentives and incentives add cost to marketing and merchandising budgets beyond the ad media costs which have to be reflected in the product price. If the brand isn’t selling on its own and the reason to buy a product requires incentives to convert branding to sales, then the price of the goods or the marketing needs to be rethought. The credo of branding is to create awareness of a product’s uniqueness, not its price on sale.
I grew up in the food business and know that every buyer wants a bargain until they decide they want the premium product. While you cannot eat a Vuitton bag, women will go hungry to acquire one as the maker doesn’t discount anything, ever and no one expects them to either. That’s branding…the value is in the goods and the name.