Roy's Blog

June 30, 2009

Unforgettable marketing practice - create packages of value

Create packages of value rather than flogging products.

“Value Paks” are created based on what you discover to be the total overall needs, wants and desires of your targeted customer group.

They reflect a broad customer dimension rather than a narrow thin slice that typifies a product-driven approach.

They place an organization in the VALUE delivery business and not the product supply business.

The “ALL ABOUT ME” WOMEN’S WEEKEND” package provided by the Fairmont Chateau Whistler, for example, offers ...“an indulgent and exhilarating women’s weekend retreat… a selection of inspiring and uplifting workshops, fun activities, and empowering presentations” with accommodations and meals, for a flat rate of around $600 CDN.

Value Paks are priced to reflect the value supplied; they are not based on discounting the sum of the component parts as is commonly done today in the plethora of bundles being provided by many companies.

As a result, margins are not eroded as in discounted bundling; rather margins are increased if the marketer is astute in the value components being provided.

Here are 5 benefits to the packaging strategy:

1. Companies are viewed as creative - looking at the customer as a total entity.

2. They are viewed as market leaders - few offer more value for premium prices. Most are in the discounting game.

3. Their brand currency goes up - based on innovation and market leadership.

4. Their customer relevance increases - Paks are based on specific customers rather than on the general needs of mass markets.

5. Margins increase - based on premium pricing not discounting.

Margin increase

Value Paks are not bundles.

They are created around value components discovered to be unique to a specific customer group.

They are sold on the basis of a singular value proposition that integrates all package components into an expression of value like the Fairmont’s women’s weekend package. They are priced up based on relevant and compelling value provided.

Bundles are old and tired; everyone uses them under the misguided belief that they create customer stickiness or loyalty.

How can that be the case when they are nothing more than price plays and there is a glut of companies in the market that provide them?

Cheers,
Roy

Check out my BE DiFFERENT or be dead Book Series

Other marketing articles you might like
5 steps to build a value package
A value package is NOT a bundle
Study the PERSON not the population

 

  • Posted 6.30.09 at 11:37 am by Roy Osing
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