Tuesday, July 21, 2009

Brand Loyalty Tactics

I have been a shopper for close to two decades now, and I am just now understanding the marketing tactics that retailers use to encourage brand loyalty e.g. store-branded credit cards, designer perfumes at non-designer prices to create knowledge of and loyalty to brands etc. I have been amazed that more luxury retailers haven't employed Marc Jacobs' special item tactic. Effectively, when you enter the MJ store you will see signs for $28 tote bags and $5 key chains while most of MJ's items are priced at $300 for a dress and $500 for a handbag e.g. pretty steep prices. What is interesting about MJ is that you see the tweens, teens and quite frankly myself browsing and buying accessories in the 'Special Items' section and then gazing longingly at the real MJ merchandise. The outcome: we check in regularly to check out Jacobs' low-end items and (theoretically) we will purchase the higher-end models when our budget permits. Ultimately, it makes the brand feel accessible to all ages; MJ gets their branded items out on the street improving brand awareness; and I get to feel cool when I pull out my MJ key chain. If only more brands would employ this brand loyalty tactic...

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