NEW YORK: Major advertisers including Unilever, Kraft and Wal-Mart are increasingly looking to "dollar deals" as they seek to attract US consumers who are cutting back their spending levels in the downturn.
The rise of discount retailers and store brands has been one of the defining features of the current financial crisis, and it has been argued that brands need to visibly empathise with the concerns of consumers if they are to prosper in these conditions.
Wal-Mart, the discount retail chain, has recently launched a variety of TV spots promoting a dozen products that are available for $1 (€0.73; £0.64), in line with its recently-announced focus on "brand relevance."
Linda Blakely, a senior director at the company, argued that these ads were "another way to bring our mission to life" and demonstrated its belief that "every dollar counts."
Unilever, the fmcg giant, will also issue 25 million coupons in June for its Lipton Onion Burgers brand, effectively reducing the product to a similar value.
According to Lisa Klauser, the Anglo-Dutch firm's vp, consumer and customer solutions, a large part of its recent marketing efforts have been directed towards "providing affordable meal solutions."
The company has previously released a $2-off coupon for Bertolli's Oven Bake Meals, which were made available online and had a 30% redemption rate among consumers who downloaded it.
Similarly, the Campbell's Soup Company has cut the price for some of its condensed soups to $1.
This is an approach it "testing to see what the interest level is and how it will move the needle," according to its director of brand communications, John Faulkner.
Kraft, the food manufacturer, has also launched communications on TV and the web promoting the fact its Kraft Singles brand is available for $1.
Brand manager Clayton Wai-Poi argued that this price level gives "consumers a very concrete example to lock onto."
The company has increased the importance of terms such as "value" and "cooking on a budget" to its online search profile, and has offered consumers vouchers for its Macaroni & Cheese offering.
Tom Vierhile, research director at Datamonitor, argued that the $1 price range is becoming the "definition of value," and, increasingly, there is a "whole segment of retail built around it."
The rise of discount retailers and store brands has been one of the defining features of the current financial crisis, and it has been argued that brands need to visibly empathise with the concerns of consumers if they are to prosper in these conditions.
Wal-Mart, the discount retail chain, has recently launched a variety of TV spots promoting a dozen products that are available for $1 (€0.73; £0.64), in line with its recently-announced focus on "brand relevance."
Linda Blakely, a senior director at the company, argued that these ads were "another way to bring our mission to life" and demonstrated its belief that "every dollar counts."
Unilever, the fmcg giant, will also issue 25 million coupons in June for its Lipton Onion Burgers brand, effectively reducing the product to a similar value.
According to Lisa Klauser, the Anglo-Dutch firm's vp, consumer and customer solutions, a large part of its recent marketing efforts have been directed towards "providing affordable meal solutions."
The company has previously released a $2-off coupon for Bertolli's Oven Bake Meals, which were made available online and had a 30% redemption rate among consumers who downloaded it.
Similarly, the Campbell's Soup Company has cut the price for some of its condensed soups to $1.
This is an approach it "testing to see what the interest level is and how it will move the needle," according to its director of brand communications, John Faulkner.
Kraft, the food manufacturer, has also launched communications on TV and the web promoting the fact its Kraft Singles brand is available for $1.
Brand manager Clayton Wai-Poi argued that this price level gives "consumers a very concrete example to lock onto."
The company has increased the importance of terms such as "value" and "cooking on a budget" to its online search profile, and has offered consumers vouchers for its Macaroni & Cheese offering.
Tom Vierhile, research director at Datamonitor, argued that the $1 price range is becoming the "definition of value," and, increasingly, there is a "whole segment of retail built around it."
Data sourced from USA Today; additional content by WARC staff
