Tag: Brand marketing

  • Best Tea Marketing Strategies and Ideas: Effective Tea Promotion Tips to Grow Your Tea Business

    Marketing can be difficult. However, it’s really not something to stress about when you’re a new business owner. All it requires is time, effort, and a lot of research.

    When you’re getting started you should simply focus on solid strategies that will work versus trying a bunch of things and hoping for one to stick. In addition, it’s easy to get overwhelmed by all the marketing advice out there from people who don’t own a business.

    This is why I wanted to put together this blog post for those who are in the tea business (growing or small) and have no idea what they should be doing or where to start.

    In today’s article, I’m sharing 17 tea business marketing tactics that will get you the most sales and help you grow your business successfully.

    Let’s get started.

    Best Ways to Market Your Tea Business
    1. Develop a Brand Identity, Not Just A Logo
    2. Create a Strong Business Plan
    3. Brand Marketing
    4. Examine Your Competition
    5. Offer Free Samples to Coffee Shops and Yoga Studios
    6. Setup a Stall at Trade Shows And Expos
    7. Make an Appealing Website for Your Tea Business
    8. Make Your Tea Business’ Website Mobile-Friendly
    9. Run Ads for Your Tea Business on Ecommerce Sites
    10. Start A Blog About Your Tea Business
    11. Offer Limited Edition & Exotic Teas
    12. Start an Affiliate Program to Promote Your Products
    13. Get Listed on Amazon and Other Marketplaces
    14. Conduct Customer Surveys
    15. Indulge in Email Marketing
    16. Connect with Tea Enthusiasts
    17. Promote Your Tea Business on Social Media
    18. Packaging, Style, and Accessories

    How to Promote Tea Business

    Best Ways to Market Your Tea Business

    Value of the Global Tea Market from 2018 to 2025
    Value of the Global Tea Market from 2018 to 2025

    The following are the top seventeen ways in which you can market your tea business and generate more sales:

    What makes a strong brand? A strong brand identity. Brand identity is what gives your business an image, a voice, and an actionable strategy for connecting with your audience. It’s what separates you from the competition.

    I always say that if you want to get more customers, you need to start with a solid brand identity. Everyone wants to work on the logo, but they forget that they need an entire company identity before they build their site and then start building their brand (because why would your potential clients be talking about your brand if there are a ton of other brands just like yours?).

    Have you ever heard the phrase, “Something is only worth as much as someone is willing to pay for it?” It’s true. People pay a lot of money for famous brands. A brand can be a logo, a name, and everything in between. The foundation for building a brand is your identity. Having a good logo won’t mean anything if your audience has no idea who you are so you should focus on creating a solid brand identity to market your tea business.

    2. Create a Strong Business Plan

    You want to succeed in your business, but there are lots of people out there willing to help themselves to your profits. I see two things stopping you from succeeding: a weak business plan and a lack of tea knowledge.

    Some people are so focused on the marketing part of their tea business that they forget about how important a strong business plan is for any business. If you don’t have an idea of how much money you want to make, how you’re going to make it, and what your long-term goals are it’s tough to get in the game.

    A well-written business plan can help ensure your success with every startup. It outlines your goals, establishes short-term as well as long-term targets, and ultimately serves as an ongoing tool to assess your growth. It also highlights weaknesses that could be detrimental to the success of your venture.


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    3. Brand Marketing

    You picked your name, got some business cards, and made a logo and a website. Congratulations, you’re a “real” company! Now it’s time to market that brand.

    When someone visits a tea company’s website, they are looking to learn about the company. Many people will read testimonials and reviews to find out whether they are going to walk into a good situation when they visit the tea shop or if they should avoid the business. There is nothing wrong with promoting your current business on your website. It is important that you are transparent in all of your communications with a visitor.

    4. Examine Your Competition

    You have a great product, but what else does your competition offer?

    You’ve probably heard it time and time again, “Know your competition”. If you’re not looking at what your competition is doing then how are you going to beat them? Every business owner strives for their own unique selling proposition but you also have to ensure that something still makes you stand out from your competitors.

    By checking out the competition, you can find out more about your industry, discover trends, and identify some sweet marketing opportunities.

    5. Offer Free Samples to Coffee Shops and Yoga Studios

    When it comes to marketing your tea business, you need to think creatively. So many businesses try the same strategies and rarely see any growth in their sales or brand awareness.

    Offering free samples can be a great way to get your tea business in front of people. When people try free samples and like them, there is a high percentage of chances that they will buy that product. By offering free samples, you can earn long-term customers for your tea business. So start talking with your local shops and give them free samples for your business’ marketing.

    6. Setup a Stall at Trade Shows And Expos

    Most people make the mistake of not taking advantage of a captive audience. Since Indian consumers love to enjoy tea from stalls, you can take your tea cart to the mall or festivals. Also, you could find local stores that would let you set up a little shop on the sidewalk in front of their business. The point is your customers will remember you once they try your tea in person.

    Tea Production in India
    Tea Production in India

    7. Make an Appealing Website for Your Tea Business

    A good website can make all the difference for a tea business. It’s one of the first places people will search for your products and read about what you do. Even when people are not buying from you, your website still remains a source that they can visit to get the information they want or need. If you want to sell more teas, you need a good‐looking, functional website that will turn visitors into sales. The key is to think of ways that a customer can immediately contact you, find out if you offer their favourite flavour, or discover new ways they can use your products.

    8. Make Your Tea Business’ Website Mobile-Friendly

    The average person checks his or her smartphone almost 150 times a day. That’s over 9,000 times per month. Think about it, fans and customers are looking for your business every time they grab their phone as it vibrates in their purse or pocket.

    Lots of people are shopping on the go. Mobile devices are often their first choice when they’re looking for a product or service to buy. But don’t confuse mobile marketing with mobile-friendly websites. Mobile-friendly websites will work for any device, not just ones that use smart technology. Thus, another great way to promote your tea business is to make your website mobile-friendly and if possible have a mobile app too.


    How to Start a Profitable Tea Stall Business in India: Earn ₹1,000/Day
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    9. Run Ads for Your Tea Business on Ecommerce Sites

    This is also one of the best ways to market your tea business and generate more sales. Running online ads can be a very effective form of paid marketing. When used correctly, eCommerce ads are a way to drive sales to your store and generate more traffic in the process. There are plenty of ways you can use ads on eCommerce sites to get the most out of them.

    10. Start A Blog About Your Tea Business

    Another amazing and popular way to market your tea business is to start a blog. You can write about things like how to brew the perfect cup of tea, why your tea blends are unique, etc. In this way, you will be able to reach a larger audience and develop a connection with them.


    Best Tea Franchise in India – Tea Franchise List, Chai Franchise & Low-Cost Tea Shop Options
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    11. Offer Limited Edition & Exotic Teas

    If you love tea as much as we do, then you probably know that there are many different types of tea like green, white, black and oolong to rooibos, mate, pu-erh, and many more. You may also know that the world of tea extends beyond the typical options found in most grocery stores. There are many other varieties that are harder to find in your local market but can be uncovered by visiting a tea shop that deals in specialities or you can also look for them online. So, another great way to market your tea business is to offer some limited edition and exotic teas.

    12. Start an Affiliate Program to Promote Your Products

    Some of these strategies might sound familiar, but that’s because some aspects of the business have stayed the same over time. Affiliate marketing is an old strategy which you can implement to market your tea business and generate more sales.

    It’s no secret that social media can be a great way to promote products, but it’s not all about the likes. Creating an affiliate program is a fantastic way to get people to promote your stuff all over the web.

    13. Get Listed on Amazon and Other Marketplaces

    Amazon and other marketplaces are a great way to expand your tea business. Being able to list your products on the largest search engine in the world will mean you get more exposure, more sales, and more customers willing to buy from you.

    14. Conduct Customer Surveys

    Customer surveys are one of the most important tools to understand your customers and also improve your business. A survey helps you find out what your customers think about your products or services, what they’d like to see from you, and what they would want you to improve on. This will help you come up with a strategy to meet their needs better and retain them as loyal customers in future. There are different types of surveys that you can create depending on your business needs. This way you will be able to understand your customers better which in turn will help you to market your tea business better.

    15. Indulge in Email Marketing

    The email channel is still the most used for marketing and customer communication. Driven by customer preferences, this remains one of the cornerstones of any B2C or B2B initiative within a company’s marketing program. Therefore, it is wise to indulge in email marketing when it comes to marketing your tea business.


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    16. Connect with Tea Enthusiasts

    Another great way to market your tea business is to connect with tea enthusiasts. These people will not only be interested in becoming your loyal customers but will also help you gain new ones. With blogs, social media and a number of tea forums out there, it’s easier than ever to get in touch with your target audience and come up with possible leads.

    17. Promote Your Tea Business on Social Media

    Tea Trunk - Tea Business Account on Instagram | Tea marketing Strategy
    Tea Trunk – Tea Business Account on Instagram | Tea Marketing Strategy

    Gone are the days when your business was only advertised on the radio and TV. Now, social media channels have become the new marketing buzz when it comes to advertising a tea business and helping to spread awareness about your products.

    Social media is not just a space where people post selfies and share photos of their cats anymore. Now, more than ever, social media is a platform for businesses to reach an audience and promote their products.
    Social media has revolutionized how companies advertise and market their products. Today, you can use social media as an effective tool to build your brand, drive sales, and increase awareness about your company or product. These websites are a great way for small businesses to reach new audiences and promote their company with little cost or effort required.

    There are a lot of popular social media platforms such as Facebook, Instagram, Twitter and Youtube. These sites give businesses access to billions of potential customers and allow them to reach those people in an extremely cost-effective manner.

    Read on to discover how you can use social media to promote your tea business and give your marketing efforts a boost!

    • Take advantage of Instagram influencers to help promote your tea business

    People love free food. And if you own tea business, why not send free samples to bloggers and influencers in your target market who might tell their audiences about you?

    Food bloggers and influencers on Instagram are perfect for sending free samples of your tea products. They are very popular among their followers, and they love to try new foods. They will often post photos of them tasting the teas they receive, which is a good way to create some buzz around your teas.


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    • Create dedicated pages on Facebook and Instagram for your business

    Creating dedicated pages on Facebook and Instagram for your business helps you to reach out to your existing followers and let them know about the new changes happening in your business. Remind them that the new page is where they should be going for all things related to your teas.

    Shahab Zargari, CEO of Pinnacle Foods UK, owns a tea company called 17 Tea. He recently told Entrepreneur Magazine that this is the best business marketing idea for 2021, To acquire leads and increase your sales, create pages for your product on Facebook and Instagram and fill them with quality content.

    • Start a YouTube channel for your tea business

    YouTube is one of the best social media platforms to get started with. You can create videos on anything you like. For example, if you are starting a tea business, you can begin by making short videos about certain health benefits of tea. As you make more and more videos, it will be easier to gain subscribers and people would come back to watch the new video every time you will upload one. This way people can learn a lot from your YouTube channel and thus, a great way to market your tea business.

    • Send Consistent Messages Across All Platforms (Facebook, Twitter, Instagram)

    A quick and easy way to market on social media is to send consistent messages across all platforms. You want your audience to get to know you quickly, so use a post on Twitter as the caption and include the same photo on Instagram. People tend to like consistency. It makes them feel connected to your business, which will lead you to their inbox!

    18. Packaging, Style, and Accessories

    Now that you have great tea to sell, you need to choose the right packaging. Think about selling an experience, your customers should feel something special every time they drink your tea.

    Offer fun accessories, like unique cups or infusers, especially if you sell loose leaf tea. Make sure they have the tools they need to enjoy it.

    If you have a store, create eye-catching window displays and packaging that attract people to walk in.

    For online tea sellers, focus on creative digital advertising to grab attention and bring customers to your shop.


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    Conclusion

    There are a lot of people out there selling tea. It’s hard to get in front of your target audience without standing out from the crowd. But if you use the above-mentioned tea business marketing tips, you can make your business stand out and build a following that will drive more sales and growth. This is the kind of solid advice you need if you want to build an industry-leading business.

    FAQs

    Is the tea business profitable in India?

    Yes, the tea business is profitable in India because most Indian consumers have a strong taste for it. However, your profit will depend upon the type of teas you are producing and selling.

    How to promote tea business?

    Promote your tea business by using social media, offering free samples, creating attractive packaging, partnering with cafes or influencers, and running online ads to reach more customers.

    Which are the top tea companies in the world?

    Top tea companies in the world are:

    • Tata Global Beverages
    • Unilever
    • Nestle
    • The Republic of Tea
    • Dilmah

    Where is the world’s largest tea market?

    China has the world’s largest tea market valued at over 78 billion USD.

    What is tea business profit margin?

    Tea business profit margins are usually 30%–60%, depending on sourcing, branding, and sales channels.

    What are the ideas of digital marketing for tea business?

    Use digital marketing for your tea business through social media ads, SEO, influencer partnerships, email campaigns, and engaging content to attract and retain customers.

  • Why Do Companies Invest So Much in Sports Advertisements?

    Over the last few decades, sports marketing has firmly established itself as an integral part of marketing. There is no existing definition for sports marketing. However, it is explained as a specific application of marketing principles and processes to advertise sports and non-sports products through an association with sports. It can also be described as a service through which either a physical product or a brand name is endorsed.

    The design and concept of sports marketing is to meet the needs and desires of the consumers through an exchange process. The traditional four ‘P’s of marketing – Product, Price, Promotion, and Place are employed along with the four extra elements of the sports marketing mix – Planning, Packaging, Positioning and Perception. These types of sports promotions involve a variety of sectors of the sports industry like broadcasting, advertising, social media, digital platforms, ticket sales and community relationships.

    Sports Advertisement Popularity in Numbers
    Reasons to Invest Heavily in Sports Marketing
    What Do Companies Require From Sports Advertising?

    Sports Marketing Strategies for Small Businesses

    Sports Advertisement Popularity in Numbers

    Size of Sports Sponsorship Market Worldwide in 2021 and 2030
    Size of Sports Sponsorship Market Worldwide in 2021 and 2030

    In 2021, the Indian Sports Industry spends surpassed INR 9500 crores. It was an echoing comeback for sports sponsorships and media deals, which had dropped severely during the covid struck year of 2020. Sports celebrity endorsement spends grew by 11% with a total of 444 brand endorsement deals in 2021. It was also the year of the Olympics which increased the Emerging Sports Athletes’ endorsements by 79%.

    Prashanth Kumar, CEO of GroupM South Asia observed – “2021 was a year of a major comeback for the sports industry. Not only in sports but we saw growth in sponsorships, endorsements, and media expenses in 2021. This year will also be a good re-start point for brands to invest in sports properties since sports will see a rise and will in-turn deliver ROI to brands. Apart from this, we even saw esports gaining significant traction and there was a major rise in the number of gamers in the country. Properties like PKL, ISL, etc. are also seeing a major rise in followers which goes to show that India is heavily invested in overall sports from an interest and inquisitiveness standpoint. As for cricket, we are seeing a growing interest by Foreign private equity giants investing in Indian cricket which is proving that Cricket will continue seeing a huge surge in India and with 2021 getting cricket back on track, we are seeing 2022 racing ahead, aiming to cross INR 10,000 Cr mark.”

    2021 saw heavy media spends in sports as broadcasters played a central role to bring consumers and brands closer. Household penetration of television and technology has been crucial in the growth of sports appreciation by the masses. This has resulted in television becoming the largest medium for viewers culminating in an overall ad expenditure of INR 5051 crores – a growth of over 59% from 2020. The digital ad expenditure grew to touch INR 965 crores.


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    Reasons to Invest Heavily in Sports Marketing

    Sports marketing is about using the content of sports to assist the marketing efforts. Apart from professional sports, sports marketing is a large part of college athletics, minor leagues and alternative sports. It can take many different forms as sports is watched on a variety of platforms. Television networks sell airtime during sports events, teams sell advertising space inside the stadiums to marketers wanting to purchase billboards and other print advertisements, and famous athletes sign contracts as celebrity endorsers and lend their image to brands.

    One of the main reasons for brands to invest heavily in sports marketing is to piggyback on the popularity of athletes and the loyalty of their fans. It gives brands and companies a captive and ready audience to advertise their products.

    Sports also add value to a brand by creating a unique position in the mind of the consumer. This is especially advantageous in a market that is rife with stiff competition. Smaller companies benefit immensely from improved awareness at local or regional levels.

    At its highest levels, sports involve medals, world records and global awareness. This is a ready stage for global brands that want to associate themselves with excellence and ubiquity.

    What Do Companies Require From Sports Advertising?

    BYJU'S Sports Marketing Example
    BYJU’S Sports Marketing Example

    Sports advertisements and sponsorships are used by companies and brands for a variety of reasons and objectives.

    Brand / Corporate Awareness

    This is to expose the name in front of the consumer so that he or she will recall it favourably when exposed to other focused marketing messages.

    Brand / Corporate Image

    This type of sponsorship is focused on creating a particular style or niche for the brand or the company. It allows the brand to distinguish itself in the market and paves the way for premium pricing.

    Customer Relations

    Anyone in marketing understands the importance of building good customer relationships. Sports sponsorships are an excellent avenue to open a dialogue with other companies as well as showcasing their worthiness as a global player and a trustworthy business associate.

    Employee Relations

    Sports sponsorships foster pride and loyalty within the employees. This helps to retain and attract staff.

    Community Relations

    This is the philanthropic side of the company that can be showcased through sports sponsorships. It highlights the company’s readiness and willingness to invest in society’s future and well-being.

    Different companies have different needs from sports sponsorships.  However, the commonality exists in the quantifiable contribution to the brand. It also allows for media coverage and exposure, by creating opportunities for newspaper photographs and television images, showing logos or banners.


    How much does these Top 10 Sports Celebrities charge for Instagram post
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    Conclusion

    Companies and brands use sports to reach a certain segment of the population. However, the only real qualification for using sports advertising is a product that has mass appeal. Hence, it is extremely important for any marketer to understand the relevance of the product that is being marketed to the audience.

    As a marketing tool, sports advertising is highly effective. It is dependent on the company or the brand to utilize this tool to its maximum advantage.

    FAQs

    What is sports marketing?

    Sports marketing is a type of marketing that uses sports for advertising. This kind of marketing simply focuses on promoting products and services by taking advantage of sports events and teams to reach the audience.

    Why do companies invest in sports marketing?

    Companies invest in sports marketing for many reasons. These include:

    • Brand Awareness
    • Brand Image
    • Stronger Customer Relations
    • Better Employee Relations
    • Community Relations

    What are the key areas of sports marketing?

    The key areas of sports marketing include sponsorships and endorsements. In sponsorships, the brands offer funds to sports events and teams for the brand’s promotion and in endorsements, the brands approach sports celebrities to act as their spokesperson.

  • All You Need to Know About Decoy Marketing Technique | How It Is Used?

    There are various marketing techniques available for a brand to promote itself, but the decoy effect comes to the forefront. Known for its unique advantages that help brands triumph over their business competitors, decoy marketing is one of the most popular marketing schemes available. In this article, you are going to get a glimpse at what this technique is, the tools it employs, and how it benefits you. With a well-rounded argument about decoy marketing, you can take your pick today!

    What Is Decoy Marketing?
    Ways to Use Decoy Marketing
    Advantages and Disadvantages of Decoy Marketing

    How Brands Use the Decoy Effect?

    What Is Decoy Marketing?

    At its base level, marketing is a term that refers to selling the product of a company. However, as the understanding of human psychology has developed and widened more expansively than before, a new stream of consumerist psychology based on the needs of the consumers has emerged. This type of study examines more than simply focusing on a target audience. It encounters the territory of behaviour prediction, consumer behaviour manipulation, deliberate changing of attitudes and beliefs, and more.

    Each approach works on the principle of one or more marketing techniques to sell products and ensure loyalty among customers. One such technique is the decoy effect. This effective mechanism engages with the consumer’s subconscious and enables greater profit margins. Keep reading to know how decoy marketing has come to the forefront and is here to stay.

    Size of Marketing Related Data Market Worldwide from 2017 to 2021
    Size of Marketing Related Data Market Worldwide from 2017 to 2021

    Decoy Effect in Marketing – Meaning

    As a buyer of goods, you are a consumer who comes into contact with many different types of brands. These brands are always on the lookout to boost sales and bring in higher profits to sustain the company and ensure longevity. As a result, they employ different techniques to ensure that you, the buyer, purchase their products.

    The decoy marketing technique not only helps brands ensure a consumer buys their products but also purchases the more expensive options over the cost-savers. However, on paper, that seems unreasonable. Buyers automatically move towards deals that will help them save money while also getting a great offer. So why would they go for items that cost more?

    This is where decoy marketing comes into play. The decoy effect refers to placing a bait or a decoy item that is either more expensive or ridiculously cheaper. In this process, consumers purchase the item that will bring in the most profit for the company instead of saving money by buying the item that costs less. This marketing technique pushes the item that the brand wants to sell at the same cost before the introduction of the bait item. Let us take a look at how this technique works using concrete examples.

    Ways to Use Decoy Marketing

    The decoy effect is not always easy to spot when you are not looking for it. However, if you keep an ear out, you will be able to find the tell-tale signs of the marketing scheme. For instance, have you ever visited the supermarket and encountered a product priced surprisingly high? The price tag makes no sense, but the brand may have possibly intended it that way. The deliberate hike in the cost of the item forces consumers to look for a lower price, the next lower rung on the ladder. That is the conscious manipulation of the consumer’s tendency to buy the next best deal at a cheaper cost.

    Here are three ways that brands use the decoy effect to sell high-cost items.

    The First Way to Use Decoy Effect in Marketing

    The Decoy Effect in Marketing Example
    The Decoy Effect in Marketing Example

    For example- There are two ice cream sizes you will encounter at a shop – Big and Small. Let us say they cost the following:

    Small ice cream – $1.99

    Big ice cream – $5.99

    Customers who visit the shop will predictably move towards the smaller size. However, to push the bigger product, the decoy strategy will insert an additional size and cost, the medium-

    Small – $1.99

    Medium – $4.99

    Big – $5.99

    Someone who is looking to save money on a deal that offers the most will turn towards the medium option. The medium option is the tactic that brands use to get consumers to spend more than they would have otherwise.

    The Second Way to Use Decoy Effect in Marketing

    In the second method, let us say there are two ice cream tubs available, the size and cost of which are:

    Small – $1.99

    Big – $5.99

    Mega – $12.99

    The last option has an inflated price tag. As a result, to get the best possible deal in terms of both cost and offer, a buyer will go for the ‘Big size’. The brand has intentionally inserted the inflated amount. They do not expect that people will rush to buy it. However, the high cost ensures that the price of the product above is much more attractive to the consumer. Therefore, people will be more likely to pay for the big size than they would have before the inclusion of the mega size.

    The Third Way to Use Decoy Effect in Marketing

    The third way focuses on offering a consumer an expensive product at what the buyer thinks is a good price. Say you go to a shop and you see the following four products:

    Product A – $10.99

    Product B – $12.99

    Product C – $20.99

    Product D – $35.99

    A buyer will probably avoid Product D since the price is much higher than the other options. However, a decoy option may be inserted in the following manner:

    Product A – $10.99

    Product B – $12.99

    Product C – $20.99

    Product D – $35.99

    Product D – $50.99

    In this new set, there are two versions of Product D. However, one costs more than the other. Thus, buyers are more likely to choose Product D which costs $35.99. It is because they believe it will offer them the same features as Product D which costs $50.99 but at a much more affordable price. This ensures people buy the products most profitable to the brand’s interests.


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    Advantages and Disadvantages of Decoy Marketing

    Brands Taking Advantage of Decoy Marketing
    Brands Taking Advantage of Decoy Marketing

    Many big brands like Apple, McDonald’s, Amazon, The Economist, The New York Times, and more use decoy marketing techniques to attract more customers to their profitable products.

    However, as with all other marketing techniques, the decoy effect also possesses advantages and disadvantages. These elements will help understand how the technique can work to promote a company’s products to the greatest effect. Take a look at how the decoy effect in marketing can benefit as well as create drawbacks.

    Advantages

    The following are the advantages of the decoy effect in marketing:

    • Eliminates Paradox of Multiple Options – Sometimes, having too many options can be more of a nightmare than you would think. While having options is certainly liberating, too many choices will lead to a consumer avoiding them altogether. This is known as the multiple-choice paradox. Therefore, the decoy technique helps people to choose among a limited number of options. A brand can still sell its products while offering selected options.
    • Offers a Win-Win Situation – The decoy technique offers a situation that is advantageous to both the company as well as the consumer. The customer gets more options and receives better deals. On the other hand, the brand can market those items that would not have fared well before the introduction of the decoy item. That makes for a win-win situation.
    • Ensures Better Sales – The decoy item is present to ensure that it pumps up the target item. The decoy product is not what is going to be sold. The brand wants the consumer to buy a product, and the decoy will help promote that item. Therefore, it will help sell the creations of the company better.
    • Sells Poorly Performing Products – If there is a product that is not seeing a lot of success, the decoy marketing technique can improve its condition. By showing a more expensive, trumped-up product, consumers are more likely to choose the next best offer available. A company can then market its more unpopular products in this category.

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    Disadvantages

    The following are the disadvantages of the decoy effect in marketing:

    • Can Create Customer Aversion to Brand – The main element of the decoy marketing technique is speaking to the client’s subconscious. If you alter your prices drastically but offer the same product without any updates, the brand may face accusations of false values. Make sure to take advantage of the subtlety factor when employing this technique.
    • Requires a Lot of Strategies – The decoy effect requires solid strategizing. If you do not price a product properly, the technique can backfire, leading to a drop in sales or even unchanging attitudes. Moreover, the price has to be set just right to bring focus on the item that must be sold. Customers will otherwise choose the same costing products before the introduction of the decoy item.

    Conclusion

    The decoy effect is a successful manoeuvre in the world of marketing and consumer behaviourism. With its innumerable pros and useful tools available under its belt, the decoy technique is a profitable one. When used under the right circumstances in the right manner, the technique can help improve a brand’s saleability and help it prosper.

    However, subtlety and care are the big names of the game. To increase sales revenue, the brand must ensure that the product offers what it promises. This will ultimately ensure ease of selection as well as increased purchases from the consumer’s side.

    FAQs

    What is a decoy in marketing?

    A decoy refers to a third option that a brand offers in order to change consumers’ preferences regarding two basic options available. This phenomenon is known as the decoy effect or attraction effect in marketing.

    What is an example of decoy pricing?

    One of the most common examples of decoy pricing is the popcorn sizes available in movie halls. The small and the large sized ones are the basic competitor products, but the involvement of a medium size widely influences customers’ preferences. People prefer to buy the medium size thinking that it strikes a balance between the other two products.

    How do marketers use the decoy effect?

    Marketers use the decoy effect to make the consumers believe that their target product is better than its cheaper alternatives. They do it by making a product more appealing to the consumers’ subconscious minds.