When Promotions Kill Your Brand Strategy

Promotion and Brand Strategy

by Margaret Sims

The Bay department store is a venerable Canadian institution, and over my shopping lifetime, I have come to learn that the The Bay is a high quality department store.  However, they seem to be moving into discount chain territory by using the old school marketing tactic of the loss leader this holiday season.  Large ads in national newspapers promote its One Day Sales.  So far this week, there was Monday’s $688 40” flat screen TV, Tuesdays $14.99 price on $50 dress shirts and who knows what deep discounts will follow.

I expect that The Bay carefully weighed the pros and cons of such a strategy, and decided to pursue the promotion as a means to draw consumers into its stores and try to regain lost customers who moved to discount chains during the recession.  But as one on their target customers, my reaction is mixed.  The Bay has my attention.  I have noted the deep discounts.  I even flirted with idea of replacing my 15 year old basement tube TV with a $688 Sony flat panel TV on Monday.  However, I am also confused and irritated.  I am confused about whether The Bay is moving down-market –  becoming a discount chain — and confused about whether I should buy an item now or wait for a substantial one day discount.  I am irritated that the sales are so short fuse that The Bay is trying to make me drop everything to chase a deal.  For me, the convenience of a department store is to reduce the time and transaction cost of shopping, and the idea of rearranging my day to chase a sale is anything but convenient.

Whether you think The Bay’s One Day Sales are a good way to bring customers back to its stores or a deviation from its core brand, one thing is clear: Brands must be careful not to allow a promotion to dictate brand strategy.  If a brand’s promotion runs counter to brand strategy, then it risks weakening the brand, annoying the primary target customer and turning its brand’s evangelists into cynics.

Author: Category: Brand Promotion Tags: , , , , , ,
  • Craig

    The Bay took the same tactic last year in the weeks before Christmas and I think it’s not hurting the brand.

    But The Bay is definitely not going downmarket. In fact it’s going in the opposite direction and trying to compete with Holt Renfrew, which recently had offered its customers 25% off all total purchases one weekend in the form of a gift card. Now that’s going downmarket.

    Just take a look at The Bay’s Queen Street store in downtown Toronto. The third floor has been completely renovated, there’s now Valet Parking (like Holts), the men’s floor has additional upscale labels, and you can now buy both Burberry watches and Coach bags there.

    The Bay is no longer your mother’s department store.

  • http://www.distility.com Margaret Sims

    Craig,
    I appreciate your point of view on the Bay. I agree that the third floor of the Bay’s Queen Street store is beautiful and my experience has been that the service there is a notch above the other areas of the store.

    I do like sales and promotions, both personally and as a marketing and sales tool for retailers. However, I do think they need to be aligned with brand strategy which is developed keeping the brand’s target audience in mind. What I don’t think fits with the Bay’s One Day Sales approach is that it is a short fuse and no notice promotion. Every day it was a surprise what would be on sale, and so, if target customers are working people with kids or other responsibilities (and therefore need to plan in the busy Xmas season), it isn’t hitting their customers profile. The Holt’s 25% off is a good example of the opposite approach. Holt’s sent out a mailing to its target customers telling them in advance that this weekend 25% off event was coming and my experience is that, when Holts holds one day sales events, I get a postcard or other mailing at least a week in advance. It is the drop everything approach of the one day sale which made me feel that they were moving off focus. In the discount chain market the short fuse / have customers drop everything to chase a deal approach may work better.

    Thanks again for your comment. I hope to hear your point of view on our blog posts in the future.

    Margaret

  • Suneratech

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  • M. Davignon

    I think everything the Bay does this year is fantastic.  If you do your part by trying to get the most for your buck you will.  The deals, if you spend time and do your homework cannot be beat.  I am retired and have been able to buy at extremely reduced prices.  The Bay for me is my new EATON, which since it closed down, could not be replaced by any retailers.  Last year, big changes started to happen.  What with that new genius in charge, Bonnie Brooks?  She is changing the direction of the whole business.  Does she has a surprise in store, for us seniors: another senior discount day, before Christmas?…..Anyway have a great Holiday, Bonnie.  Keep on the good work.   

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