REBRANDING EXEMPLIFIES WORLD'S BEST PRACTICE
The rebranding of QANTAS last
month created interest around the world.
Following on the
July "Management Memos" article on branding, it is interesting to see
an Australian company with a major world brand, rejuvenate its brand so
Ritson, Associate Professor of Marketing at Melbourne
Business School describes this project by QANTAS as a "world class
exemplar of brand strategy".
Read his article
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lines'. often overlooked and underrated
begins with a hook. The
hook can vary, and often may not be price related. While
constantly shows price is not the first reason to
or later you will have to turn to price as the hook to get prospects
interested. The price hook is usually most profitably
using a 'leader line'.
The idea of 'leader lines' is often the
people think of when confronting a competitive market place. Perhaps
the concept is misunderstood,. Perhaps the idea of a 'leader line' is
confused with the often misunderstood 'loss leader'.
Making a deliberate loss on a sale seems wrong, and almost
That's why it's called a 'loss leader'. However, a 'leader line' does
not have to be 'lossy'. Leader lines have a very real place in
everyone's merchandising plans.
Get the Outlook Right
When you approach the idea of using a leader line, it's vital to
approach the concept in the right way.
Mostly, we stock products because we think people will buy
them at a
price profitable to us, and in enough volume to make the line worth
carrying. The leader line is different. It's purpose is to
make prospective customers understand that our business offers value
you can see and depend on. Evidently, it's main purpose is not to make
a profit by itself
You will trade from it to make the campaign worthwhile.
Get the Staff
At it's root,
the idea of the leader line is not to sell many, perhaps
not any at all, but to lead people to find an even better
value offer in something else on show. That does not mean that
the leader line is inferior. It means that good selling will uncover
deeper needs of your customer, and make a still better offer from a
The 'Anybody Can Do Sales' school of management gets it
wrong here. Selling is a highly complex task that does require special
skills and training. Knowing about the product range is only
fundamental beginning to having sales skills. Train your staff to sell
leader lines. Without that step, the campaign will fail.
Get the Product Right
people think of 'leader lines' only as really cheap entry level
products, right at the bottom of the price tree. Perhaps that kind of
market is not the right one for your business.
idea of a
leader line is to have killer price offer on that line. A
good quality product in the middle of the price range will be well
known for its value offer. Using it as a leader line can be a
brilliant demonstration of the great value you offer!
When choosing a leader line, be sure it is the right
your market segment. Then remember that such an offer must be time
limited. This is a merchandising campaign, and it won't last forever.
the Advertising right
is the tricky part. If you run your business on a "lowest price" claim,
then price is the main point of the offer. For most
though, the real offer is "outstanding value"
"outstanding value" is the tough one. What customers see as value, is
often not what the product proponents want to say is the value offer.
Be sure you understand why people buy that line in normal
and be sure they more of that for less in the leader line campaign.
Get the Merchandising
Visual merchandising is the final 'brick in the wall'
of your leader line campaign. In this store shown left, the
merchandising display is in the 'hero' location. You can't
help noticing it. We can guess that the card in the middle of the
display has the main claim - and it's right at eye level for people
entering the store.
This display could be better,
but is a practical example of a successful hero display in a small
store. If it is using a leader line, it caps it off nicely!
Get the Price Right
There was a long
series on getting the price right in Management Memos last year. Go to the Library
these past topics. The point to remember is that the price to offer is
much lower than you think - and it is still profitable. You've seen the
majors do it, and you read their profit reports. Talk to The Red Zebra
if can't see how to make a killer offer, without hurting.
Using leader lines is obviously not as
simple as just putting out something at a give-away price. There are
these six necessary steps to make it work. Do them carefully,
and you will see an increase in store traffic, sales, and gross profit!
Prepare yourself to reap the rewards!.
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