Cannes Lions

SALES OF APPLIANCES

PROPEG, Salvador / INSINUANTE STORES / 2012

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Overview

Description

The Problem: Insinuante is the second largest appliances retail network in Brazil, with 900 stores in 315 cities. Several of these cities are small with about 50,000 people. A cultural detail about these places is that every week there is 'market day' where everybody buys meat, fruits, vegetables and food in general. The problem is that in some of these cities Insinuante’s store is far away from where 'market day' happens, which contributes to a decrease in sales.

Challenge: Create an action that called attention to Insinuante’s stores on market days. The action should increase sales during these days.

Idea: Sell appliances as tomatoes are sold: by the pound.

Strategy: First we chose some of the most searched products in the store. Then we divided the weight of the product by its price. This mathematical operation gave us the value per pound of the appliance. in this way, a refrigerator, for example, was cheaper than a pound of meat. We assembled a typical market shop with real sellers to sell our products. To benefit from the promotion the customer only had to take the product’s flyer to the local Insinuante store no later than 7:00pm that day. Results: In the cities where the action took place appliances sales went up 35%. The action was such a success that it became part of the brand’s promotional calendar.

Execution

Execution: First we chose some the most searched products in the store. Then we divided the weight of the product by its price. This mathematical operation gave us the value per pound of the appliance. A refrigerator with this thought got cheaper than a pound so we assembled a typical market shop with real sellers to sell our products. To benefit from the promotion the customer only had to take the product’s flyer to the local Insinuante store no later than 7:00pm that day

Outcome

In the cities where the action took place there was a 55% increase in traffic to the store during market days. Home appliances represented a 35% increase. The furniture segment, where the client has the largest profit, had a 22% sales increase. Research made by the agency showed that 82% of the interviewed customers had the clear perception of low prices with the products of the action. Its important to keep note that with the “appliances by the pound” idea we didn’t have to reduce or give any discount on the products. The success was so big that in 2012 the action will be done in 112 more cities becoming part of the brand’s annual investment.

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