Five Cents!

In the midst of our global recession many retailers are struggling to make a profit this year. Enormous downsizing, layoffs, and restructuring have been several methods to keep companies up and running in 2008. However, there are companies (or franchises) who are using unique methods to attract customers and keep attitudes positive and healthy! I read an article this morning that explained that customers are in a mood these days, and that mood generally isn't very uplifting. Stores need to concentrate on getting customers into a better mood and create an atmosphere where the customer will respond with their emotions (happy emotions) and be willing to purchase items. As the article explained, "The retail teams who know, respect, and respond to the emotional needs of consumers at this scary time in American history will be the ones that make a meaningful connection, make sales, and most importantly, make a positive image for their brand.
Furthermore, a Krispy Kreme franchisee tried to accomplish these aspects of retailing this week by offering a unique sale of coffee. This particular Krispy Kreme began to offer their coffee for a whopping five cents! In rememberance of the Great depression, this was what customers were paying during the 1930's for a cup! An interesting marketing tool indeed, but franchisee Gerard Centioli chose this price point thinking it could possibly be the perfect promotion! This definitley is getting his stores attention and recognition which hopefully will lead to increased customer flow and profits.
As the article put it best, "the high-fat, high-carb, sugary sweet mainstays of the Krispy Kreme menu board happen to taste really good with the nickel beverage that’s pulling the people through the front door. It’s hard to believe that too many people are going to plunk down their five cents and not feel tempted or even obligated to purchase something else." After I read that exert, I totally agreed! How could you not purchase something else? After all, you only spent 5 cents! I believe this marketing tool will be very successful and the company should prosper from it! With a simple promotion, Centioli is cultivating feelings of gratitude and loyalty with his Krispy Kreme customers, and these good feelings about the brand will remain long after the world economy regains its balance.
The article talked about Centioli's 12 Krispy Kreme stores and how much good he is doing for the Brand. Centioli is creating such a positive brand image for Krispy Kreme, reminding people that Krispy Kreme was starting up during the Great Depression and recognizes peoples troubles and hardships. I thought this was a very interesting marketing method that not only attracts people to the stores but creates a postive brand image and good feelings!