Monday, October 20, 2008

Crazy Promotions!


I was looking online for something to blog about and I came across and article that had to do with crazy promotions. I remembered blogging about Krispy Kreme and how they offered 5 or 10 cent coffee earlier this year, so I decided to use a search engine and look for crazy promotions that other retailers have done. Yes, the article I found was from 2006 but I found it so interesting that I had to blog about it.

In 2006, Gonigam's World Furniture Mall - near Chicago - started a promotion that offered customers up to $10,000 FREEEEEEE furniture if the Bears would shut out the Green Bay Packers. Now, I don't remember how bad the packers were that year, but hey, they had Favre at the time right? How could Green Bay get shut out?!?! Well, these store owners took their chances and the Bears ended up beating the Packers 26-0. Yeah, that's right...they had to honor their deal! Immediately after the win, over two hundred customers came in and cleared out about $300,000 worth of merchandise. Seems like these owners were screwed huh? However, fortunately the owner Randy Gonigam had insured the store with a company that specializes in prize reimbursement insurance.

Still, seems like a pretty stupid promotion right?!?! Well, according to the owner it turned out to be a success. As Randy Gonigam explained it, "Since then, we've seen a dramatic increase in traffic to our Web site. We had a slight uptick in business last weekend, but nothing dramatic," although Gonigam believes that the promotion will continue to reap long-term benefits. "An awful lot of the people we've talked to plan to buy more stuff."

I'm curious to see how the sales did a few months after the promotion and how the owners made out, considering the insurance rates/costs and the increased(or decreased) sales.

With the same article came another crazy promotion. I found this was extremely interesting also. Australian marketer Crumpler hosted a "Beers for Bags" event in the summer of 2006 in New York. Customers could trade bottles of Chimay, Brooklyn Lager and Guinness, for messenger bags, laptop cases and bean bag chairs.
As soon as Crumpler began accepting beer for merchandise, the company's two New York stores were flooded with customers, the owners said.

Furthermore, marketing manager for the company went on to say, "We have found that since 'Beer for Bags,' sales have increased in the two Crumpler stores in New York by about 10 percent, and by about 20 percent in specialty retailers around the country stocking Crumpler, which is totally awesome!" said Bianca Dillon. "Overall the 'Beer For Bags' promotion increased brand awareness of Crumpler in both New York and nationwide," Dillon said.


Basically, these owners bank on publicity as being the primary driver or growth and sales for the company. They hope to gain attention and bring customers in with their "crazy promotions." Hopefully it worked!

1 comment:

Big BAD Benny said...

Awesome blast from the past! :-)
We did beer for bags in NYC in 2007 as well, also a big success.
Sadly Bianca is no longer with Crumpler :-( Beer for bags will be back in some form sometime in the future...