This is the theory driving the latest campaign in the war for the discount dollar.
It comes from research by budget retailer Big W, which is making an aggressive bid to increase sales - slashing prices by up to 50 per cent.
Tonight it will launch a new television commercial to convince shoppers it is the best buy in the country, featuring the slogan "Everyone's a winner with Australia's lowest prices. Cha-ching."
The catchphrase is a move away from the previous "Get it for less" message that management felt was too "vague".
It is also a response to the company's research that found customers celebrating thrifty buys focus less on value than on how little they paid.
"We're now ensuring we're doing everything we can to give customers the best possible price and we're going to be shouting about it, so that's why we've got the launch of the new campaign," Ms Coates said.
Big W posted a 0.5 per cent increase in annual sales figures, released last week, to $4.18 billion. Meanwhile its rivals, Wesfarmers' Kmart and Target, remained stagnant or recorded a slight drop in sales.
Naren Sivasailam, senor analyst with marker research company IBISWorld, said the stores were aggressively stepping up advertising in order to compete in the tough climate.
"There's obviously a lot of competition and it's still dominated by the two heavyweights, Wesfarmers and Woolworths (which owns Big W)," Mr Sivasailam said.
Kmart chief operating officer Ian Bailey said it was up to customers to decide where they can get the best prices.
"We deliberately don't use the word 'lowest' to the customers because we figure they'll make their own call," Mr Bailey said. "Our customers are pretty smart."
Target managing director Dene Rogers said while items may be a few dollars more at his stores, customers were getting better quality.
"I actually think the period where customers are just looking for the lowest price is coming to an end," he said.
No comments:
Post a Comment