Every Christmas COURTS features their “Ham and Grog” Promotion as their point of difference; to get their cash register to ring in the crucial last quarter. In fact, the promotion predates COURTS and was invented by its forerunner Huggins. The Ham and Grog promo has been going for 30 years or more.
COURTS bought out Huggins many years ago and decided that this promotion had too much equity to throw it out. So I was wondering, do promotions lose their shine? Do they have a shelf life? Since the point of a promotion is to add a sweetener to what you regularly do, is “Ham and Grog” still seen as an incentive. Or is it too regular, every year for the past 30 years and more.
Is “Ham and Grog” now a product feature? – part of the fridge you buy, just like an ice and water dispenser. It comes around every October to December and once you buy up to certain values you get your Christmas stocks . So at what point does the law of diminishing marginal returns kick in?
I’m not sure myself. I guess the acid test is how this “promo window” performs in terms of achieving their sales goals. But even so, could they spend the same or less dollars on something else and get better results? One thing is certain. It would take a very brave Marketing Manager to cut it out and sometimes that’s we need as marketers. We need to go brave. They have a big retail system, maybe they could test something new to see how it performs. Retail is about being fresh and I think 30 years fresh is stretching things a bit.
1 November, 2011, 3:22 pm
It is quite stale but who is their target group? Low to middle SEL, and for them Ham and Grog is a seasonal necessity, a tradition. Is anyone else giving them this for Christmas, maybe not. For this clientele/customer , its seen as a savings on their grocery/entertaining list. These are traditional Christmas items that can cost maybe around $200 for a ham and likewise for the grog. If I am spending over $500 monthly on hire purchase this is an added attraction.
2 November, 2011, 8:46 pm
Yes, but can they do something else that’s more effective?
2 November, 2011, 7:47 am
Perhaps ham and grog has become a hygene factor having been around for so long. It probably dos not drive incremental sales anymore, and many customers have simply come to expect it at Christmas. I made a purchase at Courts last month and I have to admit that getting a free gift was the last thing on my mind and did not motivate my decision to shop there. The customer service rep informed me of the promo only after I made the purchase decision and was ready to pay. It was a pleasant experience receiving the ham, not only because it was handled with professional courtesy but also because I reflected that this is one less item I need to run around for this season. One less hassle. Maybe thats the secret of its longevity.
2 November, 2011, 8:45 pm
I think your hygiene factor comment may be spot on. I think they can keep it but it must be refreshed, dr