The Problem with Price

The current economic recession has caused both companies and consumers to watch their pennies and focus on financial budgeting.  In fact, it is pretty hard not to see a television commercial, print ad or e-newsletter highlighting a discount in prices or a product that can help save money.  But as IMC practitioners understand, businesses not only must keep in mind the current customer needs, but also remember that it needs to continue to reinforce its brand’s promise, not just its ability to offer lower prices. 

Home improvement superstore giants The Home Depot and Lowe’s are currently riding a potentially treacherous slippery slope with their latest round of television commercials.  The Home Depot uses their familiar, uplifting music to introduce its new slogan “More saving. More doing.” while Lowe’s cleverly places a “t” in the form of a letterman’s jacket and telephone pole after its name to highlight that they provide the “Lowe’st” prices.  Both are vey time relevant, but are the commercials brand distinctive and identifying?  No.  Other than the companies’ familiar logos and catchy tunes, one could easily mistake one store’s lumber aisle for the other. 

Of course saving money is a leading motivator for customer behavior during these times and The Home Depot and Lowe’s are trying to play into this consumer insight.  However, it is still imperative for companies to understand that the recession will not last forever.  By not continuing to emphasize their differentiating features such as breadth of products (The Home Depot) and professional expertise (Lowe’s), companies risk losing long-term brand distinction for a short-term solution. 

-- Lauren McCabe