Did you see this parody of Joseph A Bank's on Saturday Night Live?
In the faux Saturday Night Live commercial last night, Mom is using suits in place of paper towels because the suits are so cheap. Whoever is CMO of Bank's must have wet their highly discounted suit pants.
What happens to a brand when they are known for giving away three suits for the price of one? Or when their main selling message is 4 shirts free when you buy one at full price?
Joseph A Banks has all kinds of business issues. But the biggest marketing problem is that they is always a price discount so the value of the merchandise is never about quality, service or the craft of making a fine suit.
It is all about the discount. Price is all they market. And price is the weakest of all paths toward building value in a brand.
For years this model worked for Banks. They would take a suit and sell it at 70% off of a $1,000 price. Competitors would sell the same suit for a list of $400 and give 25% off the price. Identical suits selling for $300. Overtime, the price conscious consumer has started to be put off by this artificial pricing scheme. The real issue is the erosion of brand value.
Consumers understand an occasional special offer but when it happens every day, it diminishes the brand. The story the consumer tells themselves is there is no urgency to buy, since it will always be on sale. And, if I am looking for quality, I should go elsewhere.
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Labels: branding, Discounting, Jos A Banks, Joseph A Banks, Marketing Moments, parody, Pricing, Saturday Night Live