Tescos – Do they think we are stupid

On April 6th, 2010, posted in: Marketing by Buddy

I was out shopping the other day suffering from a bad cold. I though I would try some cold relief paracetomol. On the shelf there were many types and looking at the Tesco brands they offered two varieties. 1) Cold Relief Capsules 68p 2) Sinus Dual Relief Capsules £1.02. Both have 16 capsules. Initially I thought about spending a bit more money and by what I perceived would be a more effective treatment. I then remembered some articles about how the supermarkets try to rip us off on packaging sizes etc. So I decided to look at the ingredients and found that both packages offer exactly the same ingredients down to the last gram.

Lets analyse Tesco’s marketing trick. Firstly Tesco’s are taking advantage of the fact that the purchaser may not be feeling too well. Secondly Tesco’s are relying on human nature to purchase what is perceived to be a better product. Thirdly, Tesco’s has changed the packaging to deceive it’s clients. All in all a completely unethical marketing trick that Tesco’s get away with.

One way of increasing your profits from existing clients is to sign them up on low rates and then increase the rates once they are using you and enjoying your sservice.

Lets have a look at British Gas Business tactics.

If you are a business working from home and you are using British Gas Domestic they will offer lower rates if you move to British Gas Business. What they do not say is that the rates only last for 1 year and it is down to you to call them to renegotiate or the rates will double. However, in practice in the first year you will not save money.

We have been analysing this tactic and cannot see any real benefit British Gas gains from this. Yes they are relying on businesses not looking at the bill to closely and just paying it however because the jump is double any good accounts department will pick up on this.

What it does do is alienate their client base so much so that they risk using the client altogether.

If your business wants to employ this tactic then we would suggest increasing your rates over a longer period of time. ie. every year always increase your rates by 5 points above inflation and ensure you have a justifiable reason for this.  Always look at the consequences of your actions and what risks you will be running.

Another risky tactic: You could double the price as in British Gas Business’s case forcing the client to call in to complian. You then reduce your rates to 5 – 10 points above their old rates. The client thinks you have done them a favour but in reality you have increased your prices well above inflation. You then benefit from clients who have not noticed as well as an above inflation rise for the rest. Probably not the most honest approach however this would reduce the amount of lost clients that we would see with the British Gas scenario.

Sales – Tricks of the trade – Next

On January 9th, 2010, posted in: Marketing by Buddy 1 Comment

Have you noticed certain Sales from certain stores seem to be fake.

For example:

If you go to for example BHS and Matalan you notice that the items in the Sale were in fact the items on the shelf prior to the Sale and as such I feel is a genuine Sale.

Now stores such as Next appear to ship in specific items for their sales that were certainly not in their store prior to the Sale. To me their Sale seems fake yet millions of people queue outside their stores from the early hours.

We do not condone or support these techniques however from a marketing excersise this seems to have worked fantastically well over the years and maybe something you should consider for your business.

All you need to do is source some cheap products, put a price tag on at 50% – 75% off , advertise and let human nature take its course.

What is the Development Package?

On December 31st, 2009, posted in: Chilli Creative by Buddy

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The Development Package is for when clients are looking for more than just having a static website designed.

The package is bespoke to the individual client and can incorporate all the areas of our business which includes:

  1. Website Design and Development
  2. Search Engine Optimisation including Pay Per Click campaign managment
  3. Brochure and Literature Design
  4. Corporate ID and Branding
  5. Advertisment Design
  6. Sales Aid Design
  7. Direct Marketing including Fax, Email and Telesales
  8. Client and Prospect Database Building
  9. Many more…

We aim to become you outsourced marketing department producimg high quality designs and strategies.

How does it work?

On December 31st, 2009, posted in: Chilli Creative by Buddy

Chilli Creative has tried to develop a simple proposition for it’s clients without the jargon

1. We will need a discussion to ascertain the exact needs of your business.

2. From this we will decide on the package and develop that best fits your requirements.

From a design perspective we ask that you choose 3 designs from our gallery which will then give us a good idea of the types of design that you like.

All of our websites are designed from scratch and will meet with your requirements.

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