Tag: loyalty programmes
Complex Promotions – Pepsi Points
A notable example of a marketing campaign that failed due to its complexity is the “Pepsi Points” campaign launched by Pepsi in the mid-1990s. 1. Introduction: The Pepsi Points Campaign Pepsi, known for its innovative marketing strategies, launched the Pepsi Points campaign in 1996. The idea was simple in theory but complex in execution: customers…
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Self-Liquidating Promotions
A self-liquidating promotion is a sales promotion technique where the revenue generated from the promotion covers its costs, making it budget-neutral or profitable for the brand running it. The main ways self-liquidating promotions work: Some examples: The key is structuring promotions so consumer spending offsets the brand’s costs. This makes them sustainable long-term.
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Loyalty programmes dissuade firms from pricing products competitively
If you think that frequent flier programmes and other tactics that reward customers for their loyalty to a particular company ensure good deals for consumers, think again. According to Yuk-fai Fong (Assistant Professor of Management and Strategy at the Kellogg School of Management) and Qihong Liu (Assistant Professor of Economics at the University of Oklahoma),…
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