There are key opportunities to address inflation based on insights that reassure and protect the consumer.
Oxxo’s promotional action resorted to a resource that it has used for years in its stores, where it shows products with special prices in small displays.
Oxxo implemented an interesting promotion in the last week of June, when specialists have begun to warn about the increase in the cost of the basic basket.
A Oxxo activated an original promotion of two cupcakes goose at a cost of 24 pesos and the action highlights how a brand should take advantage of a conversation on social networks, which results from the concern about the increase in prices of products due to the inflation.
This inflation has been in the analysis of large institutions such as the International Monetary Forumwhere it is noted that during 2022 inflation in emerging markets will be more than 8 percent, the highest figure estimated between 2017 and 2027. In other words, it is a critical year to put bulletproof marketing strategies to the test.
The promotion that Oxxo activated in the last week of June, rresponds to criticism from consumers on social networks, about the price that products such as a Gansito have registered, which has a cost of 23 pesos in an image that has been replicated in various accountshowever, in a quick consultation at online store prices, the cost of this cupcake is 15.50 pesos at Walmart Express and 15 pesos in Amazon Mexico in its cookie version goose.
Although there is no clear context of where they have captured the image that shows a price of apparently 23 pesos for a goose, We have already verified that the price of this cupcake as of June 28 does not exceed 16 pesos.
What stands out about this fact is the conversation that it unleashed in the consumer, assuring that it was the result of the inflation that exists in the country, but that the Oxxo CM took advantage of to publicize the promotion of 12 pesos per Gansito if you buy two units.
We want you to continue enjoying your Gansito with this incredible promotion. 😋 Remember that cold ones taste better! 😉🥶 pic.twitter.com/hkTLG63W8K
— OXXO Stores (@Tiendas_OXXO) June 27, 2022
Build an inflation marketing strategy
In the midst of inflation there are two very important characteristics of consumer behavior. One is the conversation that takes place on this subject in social networks and another is the concern that you experience at the point of sale.
One of the latest projections of the Analysis Laboratory in Trade, Economy and Business (THE CEN) from UNAM, is that the increase in the basic urban basket is two thousand pesoswhich warns of an interesting rearrangement in consumer spending and in the priority given to certain products over others.
This evidently will lead brands to increase their investment in promotion agenciesas a measure with which they will seek to scale the demand for their products in the face of the situation that will be compressing spending.
Faced with this phenomenon, it will be important to see the activism and empathy of the brands. There is an interesting study that EY carried out at an international level, where it measured what were the actions taken by consumers when they are going to acquire products due to the increase in them.
The prevailing habit EY identified in the consumer in its study worldwide was that they would buy less, followed by buying these products less frequently, and finally stopping buying them.
|Consumer actions in the face of global price hikes 2022, by category|
|cheap alternatives||buy less||Stop buying|
|Clothing, footwear and accessories||17||38||eleven|
|beauty products and cosmetics||17||35||eleven|
Oxxo found it useful to promote on social networks, where there is a conversation around inflation, while Other brands like Chedraui have found it useful to focus on a new insight, with the consumer who comes to their stores and is interested in products in smaller portions, as revealed by Arturo Vasconcelos, deputy general manager of the chain, in an interview. exclusively for a national media.
There is no doubt that a very important scheme has been established between each of these listed aspects and it is how you will take your brand along the path of inflation. There is a key behavior and that is the consumer prefers to reduce the purchase of a certain product to stop buying it or change it for a cheaper version. Inflation will put the best loyalty strategies to the test and that is where the activism of the brand enters the scene, since that is the margin of action to implement a measure in this regard.