Black Friday: Cannibalisation or Propagation?

I worked in marketing for a leading hospitality business for many years so Black Friday is a term that I have been familiar with for some time. Back then it was an industry term to describe the last Friday before Christmas when typically, we would see the most Christmas party bookings. Since then, much like Halloween and Baby Showers we have taken the lead from our American counterparts. Black Friday has become a day when retailers heavily discount their products to encourage consumers to purchase, giving businesses a much needed pre-Christmas boost. We’ve even gone one step further with Cyber Monday. But does Black Friday actually boost businesses sales or are we simply cannibalising existing sales? In my latest blog I’ll take a look at the benefits of Black Friday vs the potential pitfalls.

Black Friday this year will fall on Friday the 26th of November. So, if you’re looking to capitalise on this day, you’ve not got much time to get your ducks lined up. Last year we spent an estimated £6 billion on Black Friday and Cyber Monday. Forecasts suggest that this year spending will be down by 6% with the average Brit set to spend £275 (finder.com). So why the sudden downturn in projected sales? The easing of lockdown and vaccine rollout may hold the key to the predicted decline in sales. With life almost returning to pre-pandemic status consumers have more demands on their income. Money is getting spent on socialising, commuting and non-essentials. Concerns over supply chains may also have some bearing on consumer behaviour this year.

So, what does this all mean for your business should you engage in Black Friday promotions or hold your nerve and maintain your retail prices. Black Friday has many pros and cons.

Pros

1.      An increase in traffic and sales

Consumers have become savvier due to Black Friday and Cyber Monday and are actively seeking out bargains during this period. Black Friday and Cyber Monday focuses shoppers on a set period of time meaning more sales and traffic for your business.

2.      A chance to offload stock prior to Christmas

Black Friday is a great opportunity to clear older stock and introduce new lines prior to the Christmas rush. This is particularly key if your business is in electronics or fashion.

3.      New customer attainment

Finding new customers can be tricky and costly. Black Friday and Cyber Monday give you an opportunity to get in front of new customers who you can then retain if their experience is positive then they will come back to you.

4.      Incremental sales

Customers are well trained and are keen to purchase around Black Friday. They may be attracted to your business due to discounts however they may go on to purchase full price items.

5.      Fulfilment of orders prior to Christmas

With ongoing issues with delivery getting sales in early may prove beneficial to retailers as you can ensure customers receive their items in good time prior to Christmas.

Cons

1.      Pressure to discount

As I’ve already mentioned customers have grown to expect discounts around Black Friday and Cyber Monday. This may be difficult for some retailers to achieve.

2.      Negative impact on sales margins

Although sales are likely to go up, profits will go down. You need to consider whether offering discounts is actually commercially viable. If not then you may wish to withdraw from offering deductions however, will your competitors be offering a promotion?

3.      Increase in returns

Black Friday can encourage impulse purchases, the problem is whether customers will then return the items.

4.      Overcrowded competitive marketplace

Lots of retailers will be talking about Black Friday so getting your voice heard above all your competition can be problematic.

5.      Delayed sales as customers are waiting for discounts

We’ve all grown to expect discount around Black Friday so teasing customers to purchase outside of this period will be tough. Its likely that you will see a drop in sales running up to Black Friday which will have a negative influence on your bottom line.

The Black Friday and Cyber Monday phenomenon looks like its here to stay despite the difficulties it poses to retailers. Its important to consider all the pros and cons before embarking on discounting your products. The impact on margins is easier for a larger retailer to absorb but for smaller businesses it may prove challenging. But equally the opportunity to acquire new customers during this period is beneficial. The key to success is ensuring that promotions are carefully managed to ensure that margins are protected whilst taking advantage of the increase in customers looking for a bargain.

If you’d like to talk to me about your marketing prior to the run up to Christmas or anything else, feel free to get in touch kiesha@iconmarketingcomunications.co.uk 07979940526.

Mum’s the Word for Business Success

It may only be in its first trimester, but 2019 is already a boom year for ex-radio presenter and mum-of-two, Kiesha Humphreys who is celebrating her fourth year at the helm of Icon Marketing Communications Ltd. In that time, Icon, a specialist marketing consultancy based in Wilmslow, has been responsible for a number of SME business success stories across Cheshire and Manchester.

Kiesha Humphreys

Photo credit: Senem Peace Photography

Kiesha explains; “I set up the business after the birth of my first son, and Icon is an anagram of his name, Nico. I’d been working at a senior level at a large advertising agency in Manchester, and while I was on maternity leave it struck me that there is a gap in the market for a reasonably priced and flexible marketing resource, in the area.”

Kiesha has first-hand experience of smaller businesses approaching large agencies and being put off by the cost. She says, “Bigger organisations can be a bit intimidating to smaller businesses – especially when they only need a one-off marketing facility or a bespoke marketing service.”

While larger organisations often don’t see the immediate potential in helping businesses when they’re starting out or are at the ‘expansion phase’, Kiesha seizes the opportunity to put her big agency knowledge and international marketing expertise to the test.

“For the past 15 years I’ve worked in the UK and South East Asia. In this time, I’ve seen the communications climate change dramatically – and it still is changing, year on year”.

In tandem with her ‘day’ job as a Business Development Manager for upmarket restaurant chain, Gusto, Kiesha honed her communications skills as a regular Radio Presenter for Cheshire’s Silk 106.9, BBC Radio Manchester and Capital (formerly Galaxy 102). It meant she had her finger on the pulse of all kinds of media. “I’m a natural-born communicator,” she says, “I was increasingly drawn to digital channels and I could see that the major draw of digital is its level of accountability and significant ROI”.

Photo credit: Jonathan Farber

As well as running Icon, Kiesha has spent the last year completing her Google Ads certifications and working on SEO projects with a number of clients.

Kiesha continues; “There is still a need for an integrated marketing communications strategy to support and strengthen the digital aspect, including PR, events and traditional print and radio advertising”.

Kiesha says; “While we’re based in Wilmslow, we often work from The Workspace in Handforth, a beautiful co-worker environment that has flexible terms – it’s great for businesses who want to collaborate. We work with businesses of all sizes to provide one-off support or ongoing marketing management (across the mix) in and around Manchester and Cheshire. We create tailor made packages in line with our clients’ budgets or we can offer bespoke solutions to suit their needs.”

The Workspace Handforth Meeting Room

Photo credit: Compton Harry Photography

It’s not every day a company can benefit from marketing experience of the kind Icon can deliver, without the international agency price tag. With so many success stories under her belt – and plenty more waiting to happen, Kiesha is more than happy to spread the good news.

For more information visit www.iconmarketingcommunications.co.uk .

To celebrate its fourth year. Icon Marketing Communications Ltd is offering all readers a 1 hour complimentary marketing consultation. For more details, please contact Kiesha on kiesha@iconmarketingcommunications.co.uk or call 07979940526.

The Workspace can be contacted on 01625 522209 or via email info@theworkspace.uk

For more information visit www.theworkspace.uk.