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Low prices only last one week

6/15/2009

An ad this week from Target touts the chain’s low prices, but seems to run counter to the company’s primary marketing push due to the limited duration of the featured prices. The ad appeared in a Sunday newspaper insert called “SmartSource” used primarily by manufacturers to distribute coupons. Above a collage of well known brands, Target promises big brands at small prices, but then advises consumers the prices are good for, “one week only.” Clearly, the goal was to create a sense of urgency, but the ad also creates a perception that runs counter to Target’s efforts to convince customers its everyday prices are just as low as those at Walmart. Anyone who sees the ad might wonder if the small prices on big brands are only good for this week, and what it says about Target’s price the other 51 weeks.

Okay, so maybe that’s over thinking things, and, in fairness to Target, a key redeeming aspect of the ad was the manner in which the company integrated a conventional print advertising piece with its online presence and physical stores. The ad advised consumers to visit Target.com where they could view featured products, check off those they want to purchase and then print a list. A total of 30 brands were featured in such frequency generating categories as household chemicals and health and beauty. The marketing effort could yield some interesting data, as Target is able to monitor which brands checked off the virtual list, how many times the document was printed and how many people abandoned the effort after clicking through to the list from Target’s home page.

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