The Wise Marketer recently reported the rise in coalition marketing as a sales promotion technique. Sales promotion has become more prominent in the last year in a blanket effort to get people  to spend their money less cautiously. It has become important to reward consumers for their loyalty so that they continue to spend money at a time when people are trying to cut back. Encouraging reluctant consumers to spend money continues to be the number one priority for brands at the moment and sales promotion is a proven way to do this. We are at the point where now it is an essential tool to remain competitive, particularly on price.

Sales promotion through consumer incentives and brand coalition is not a new or reactionary concept dreamt up as a recession solution. This has long been the bread and butter of companies such as The Rocket Marketing Group who put companies together in loyalty and membership programmes/ discount clubs and create rewards for staff or consumer incentives. The lure of big brands working together can be a powerful solution for potential rewards and an attractive consumer incentive whatever the state of the economy. All the current climate has done is to highlight the importance of sales promotion to consumers, making it now essential for all brands.

The ideas of brand coalition are the principles that loyalty and rewards programmes or discount clubs and consumer incentive rewards were built on. With loyalty and membership programmes/ discount clubs a member joins a club and then becomes eligible to redeem discounts at various retailers. The joint venture of big and small brands work to validate each other and produce a community of customer centric brands that members become loyal to because they can rely on them to understand their needs/ interests. These loyalty and membership programmes or discount clubs can be categorised to target certain markets such as entertainment, home & garden or white-labelled to match particular brands who want to sell the clubs as non-core products and earn incremental revenue.

The idea of high profile sales promotion has now become an integral part of the consumer shopping experience, so it likely to continue in some guise or other even as the economy improves.

Contact Us to discuss the possibilities of developing consumer incentives and brand coalition solutions through loyalty and membership programmes or discount club for your brand.

The Rocket Marketing Group has produced an exclusive offer for the Natwest bank. Customers of this popular bank can now buy the Blockbuster 2 for 1 Movie & Game Rental Card for only £19.99. With this special price, Natwest customers could save money on Blu-ray, DVD and game rentals, anytime and for an unlimited number of uses for 12 months.

This fantastic offer is being featured in the Natwest Sense Magazine from November 2009 to January 2010. Sense magazine has a circulation of over a million copies and so offers a great opportunity. This is the first time the Blockbuster 2 for 1 Movie & Game Rental Card has been sold directly to consumers, but it has proved to be very popular with members of The Rocket Marketing Group’s loyalty and membership programmes.

Contact Us for more information about the Blockbuster 2 for 1 Movie & Game Rental Card.

As we approach Christmas and the new year comes ever closer, retailers’ attentions whilst fixed on the issues of Christmas revenue, are also looking at the changes that are due in the new year. The lower VAT rate of 15% will rise again to 17.5% little over a year after it was lowered. Will this encourage consumers to spend more money before the prices go up again, or will they even notice a difference? Sales figures have been up on the same period last year but surely has more to do with the rise in consumer confidence. The Nationwide’s Consumer Confidence Index shows that there was no improvement last month in consumer confidence but the previous months’ increases have meant that year on year the increase has been significant. There does seem to be hope on the horizon as other major economies have recently exited the recession and companies such as Sainsbury’s and many more are reporting higher profits once again.

It’s hard to tell if the VAT reduction has really drastically changed things for consumers or businesses. To consumers it seems to have been more of a gesture, as on small every day purchases the 2.5% only equates to pennies. In general consumers have been responding positively to sales promotion techniques – many not leaving the home without a voucher or their loyalty and membership programme or discount club guide in hand. From a consumers’ point of view the discounts found in in-store sales, loyalty and membership programmes or discount clubs usually offer far more value than 2.5% and so eclipse the good of the VAT reduction. These discounts can knock profits but also generate loyalty, retention and even revenue if businesses sell the loyalty and membership programmes or discount clubs to its existing customers.

It could be argued that traditional sales promotion techniques have done more in the last year to promote consumer spending than the lower VAT rate. A discount or reward is something that consumers instantly recognise as value for money and can put into context. By employing sales promotion techniques a lot of businesses have managed to stay competitive during difficult times. As the sales and discounts continue into the new year it’s debatable whether consumers or even retailers will notice a massive difference when the VAT increases to 17.5% again.

Contact Us for information on sales promotion and implementing a discount for your brand or reward for your customers. We operate a number of membership and loyalty programmes that offer members discounts, giving the brand access to a large membership base of loyal customers. This helps businesses to drive loyalty retention and revenue.