Tag Archives: promotion

Is this a good deal?

Everyone loves a deal. Just showing a sign with “50% off!” can get shoppers racing to the store to rack up credit card points. But is that perceived ‘deal’ really a deal? Or is it a ploy? And, do shoppers always make the right choices when comparing pricing options? Oftentimes, shoppers do not make the lowest-cost choice, but instead fall prey to their own mathematical errors.

Answer this: Which is a better deal for a $6, 6-ounce product:

  • Option (a): 33% off the regular price, or
  • Option (b) 33% more product for the regular price?

At a quick glance, it appears the two deals are equivalent. But are they? No.

  • Option (a) $6 – 33% discount ($1.98) = $4.02, divided by 6 ounces = $0.67/ounce.
  • Option (b) 6 ounces plus 33% more volume (1.98 ounce) = 7.98 ounces, divided by $6 = $1.33/ounce.

In order for the two options to be truly equivalent, the price discount of 33% must be countered by a quantity increase of 50%.

This is a common scene for product discounts in stores. Generally, consumers prefer product bonuses instead of price discounts, even though these do not offer the same benefit.

Go ahead and try to make these calculations in your head! Then, carefully examine the promotions offered by retailers before making your final decision.

Which promotion would you use?

Group Activities and Discussion Questions:

  1. This activity is a good time to set students loose in stores on a field trip.
  2. Divide students into teams. Have each team walk through a local store to determine how prices are advertised and shown in stores. They can compare the shelf price with prices found in sales flyers (usually at store entrances).
  3. As they wander the store, have students find examples of products that are offering a discount, or offering an extra portion in the package. (They can use smart phones to take photos of the examples.)
  4. What pricing strategies are being use?
  5. Do they always make the lower-cost choice?
  6. Debrief the exercise.

Source:  McGinty, J. (3 August 2018). 50% off: Why that deal isn’t as good as you think. Wall Street Journal.

 

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Armpit Advertising

Do you ride the subway or other public transportation? Do you notice the ads in the cars, or do you tune out everyone and everything, particularly the stinky armpits of fellow travelers on crowded trains? Well, in what might possibly be the weirdest place ever for an advertisement, a Japanese company is charging clients roughly $90 per hour to place advertisements on armpits. Yes, you read this correctly – armpit advertising is now a thing.

Wakino Ad Company (“Waki” is the Japanese word for “armpit”) is placing the ads on the underarms of both female and male models for beauty company Liberta, whose product mix includes armpit creams. Wakino is also running a national armpit beauty contest to promote the new areas of advertisements.

While the armpit ads might seem strange, people have long used spaces on their vehicles and bodies to promote products. There have been cases where advertisements have been placed on bald heads, faces, thighs, and other body areas. For armpit ads, the sponsors could be for hair removal, dermatology, lotions, creams, and who know what else.

Go ahead and raise your arm in public – you could get paid.

Group Activities and Discussion Questions:

  1. Poll students: Who takes public transportation? What ads do they notice?
  2. Discuss the various promotional tactics that can be used for marketing a product.
  3. Have students come up with tactics and list all the tactics on the white board (ex: billboards, print, direct mail, etc.).
  4. Now, introduce the armpit advertisements: https://youtu.be/P54A9L-VyFg
  5. Divide the students into teams. Have each team list what products could be advertised in armpits?
  6. What other body locations could host ads? What products or services would they feature?

Source: Ad Week, CNN, other news sources

 

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Mealtime Bribery

It can be tough to get kids to eat their vegetables. (College students might not have this problem, but parents certainly do.) Let’s face it. Most kids would rather have candy, or soda, or French fries, or anything other than eat parent-endorsed healthy foods. What’s a parent to do?

One solution is of course an all-out battle with consequences for not eating healthy. But another solution could be to use bribery! In other words, “If you eat your vegetables, you get a treat.” And maybe that treat could be Ore Ida’s French fries…

And, since not all parents are comfortable with the idea of bribery to encourage good behavior, Ore Ida wisely renamed the practice as ‘Potato Pay’. It’s pretty simple. Set an exchange rate (aka bribe) for each healthy food that kids eat. Broccoli could be worth two fries, carrots equal one fry, and Brussel sprouts are worth five fries! The exchange rate can even vary depending on the child and vegetable. Don’t struggle – pay with French fries.

What’s the exchange rate in your house?

Group Activities and Discussion Questions:

  1. Poll students: Were they picky eaters? Do they have young cousins or siblings who always present a challenge at meal times? How did their families handle this?
  2. Show the potato pay video: https://youtu.be/x8ZUvU_SW-I
  3. Web site: http://www.trypotatopay.com/
  4. Suggested mealtime bribery chart: http://www.trypotatopay.com/MealtimeBriberyChart.pdf
  5. Have students analyze how Ore Ida created a full campaign.
  6. Divide students into groups. Challenge each group to identify a problem faces by parents at meal time.
  7. What is a creative solution that a food company could use to market its products to solve the problem?

Source: Griner, D. (13 July 2018). Kids won’t eat veggies? Bribe them shamelessly with Ore-Ida’s ‘Potato Pay’.

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