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Marketing and The Economy Part 2: Binky’s Bananas

May 20, 2009 @ 4:58pm

Updated — May 20, 2009 @ 5:01pm

by Mason Razavi

Back for more info on marketing and the economy? How could you not be! Examining corporate behavior during desperate economic times not only makes business sense, but is fascinating as well.

This time around I want to talk about a company that probably doesn’t want me divulging their clever marketing plan to the public. So, let’s just say this company is called “Binky’s Bananas”, and let’s say that they manufacture and sell high-end bananas through retail stores as well as several other sales channels.

Binky’s had a relatively rough year last year, though not as bad as many companies out there who had to seriously restructure their business or shut down altogether. They finished their fiscal year at about 75% of their sales goal company-wide which, while not great, is relatively respectable considering the uphill battle they fought against the crumbling economy.

During not-so-rosy economic times, it becomes difficult for high-end manufacturers and retailers such as Binky’s Bananas to convince people that they should fork over hard earned dough for products perceived as luxuries. So, with a new fiscal year, new and attainable sales goals, and the promise of new products coming out, Binky’s also decided to re-vamp their marketing campaign.

You see, Binky’s is perceived as an unattainably expensive brand by most, so these crafty marketing primates have to find a way to re-position themselves as a brand that offers quality products at attainable prices. With this in mind, their new campaign focuses on positioning their most affordable products at the forefront. This is evident at their stores; the window displays use images and copy that stress value, and the main banana in the window is their most modestly priced model.

But Binky’s isn’t done monkeying around just yet. What’s really interesting – especially to consumers – is how they are using different promotions and promotional copy in different regions. You will find that their retail stores that are in rural areas stress value using one tagline, whereas stores in affluent areas use different words to essentially say the same thing. What’s more is that they are running different promotions in their western region versus their eastern region. So while the print ads in California offer a free banana rack with a purchase of their fully featured Big Blamo Banana, the print ads in New York City entice you with a free banana launcher if you buy one by the end of the month.

The best is yet to come. What Binky’s is doing is running A/B tests across the country to see what promotional items and compelling copy is best reaching their customer base. Throughout the year, they’re going to compile their data to assess what has been working and what has not. With this in mind, their future campaigns can be more focused, more in tune with their customer’s needs, and hopefully will drive more sales.

There is a moral to this story, for consumers and also for businesses.

For consumers, keep your head up and your eyes open! You never know what kinds of deals are out there, and how they differ from location to location. Businesses are desperate to make a sale these days, so don’t be afraid to do your homework and walk into that local car dealer/electronics retailer/high-end banana shop and ask for what you want.

For businesses, keep an open mind and utilize the most creative people around you to find new ways to reach your customers. Things have not only changed, they’re in flux as we speak. Some of the rules of yesterday don’t apply, and new technologies in the social networking world are changing the ways that consumers behave, spend and advocate. Now is the time to try new things, to unleash that creative beast inside, and let the brightest creative minds at your disposal take charge to create compelling campaigns in an effort to deliver an extraordinary experience to your customer base.

Hey, if you need some expert advice, don’t be afraid to pick up the phone or click the mouse a couple of times to get a hold of Elative Marketing. Our team of highly advanced, bi-pedal primates can help you reach your clients through engaging, compelling promotional campaigns. No, really. No monkeyin’ around, I promise.