Mattel is banking on in-store retail to uplift holiday sales, while Kimberly-Clark is building its profile through storytelling-driven ads. McDonald’s drawing customers to its loyalty program thanks to gamified features in its mobile app.
Here are three insights from each company’s most recent earnings and what marketers can learn.
“Our focus is on building brands with advertising, great storytelling, pioneering innovation,” chairman and CEO Michael D. Hsu said during last week’s earnings call. For example, the Scott toilet paper brand released a short horror film poking fun at bathroom taboos in April. “The Clogging” video has since garnered more than 2.79 million views on YouTube.
“I do recognize broadly across staple [products] that there is increased consumer price sensitivity, so making sure we have the right value proposition is going to be important, Hsu said.” Even though predictive modeling tools have helped Kimberly-Clark make informed choices on pricing and promotional strategies, Hsu said the company’s larger focus remains on branding and innovation to drive category growth.
What it means: There is a delicate balance between pricing products competitively and affordably, while still maintaining the brand’s perception of quality. Achieving this balance can help ensure you are engaging consumers who aren’t solely buying your products because of a discount, but because of the brand equity that comes with it.
“We know that engaged loyalty customers spend more and visit more often. And as a result, we’re driving digital market share gains and continuing to build on our understanding of customer preference, personalization, and behaviors,” said chairman and CEO Chris Kempczinski.
Last quarter, McDonald’s launched a nationwide scavenger hunt in Canada for fry icons, which could be redeemed in the mobile app for loyalty points or free fries. In Germany, an interactive calendar in the app offered daily discounts.
The initiatives helped the McDonald’s loyalty program reach 166 million members, pacing ahead of expectations, according to Kempczinski. Loyalty users also represent a quarter of systemwide sales.
What it means: Although half (50%) of US shoppers use retail apps to get the best prices, according to May 2024 data by the SPAR Group, there’s no reason the interface can’t also be designed for play. Creating a loyalty program that delivers promotions while being fun to use can help keep members coming back.
Because of the strong relationships with retail partners, Mattel expects to secure more shelf space in the second half of 2024. The company’s retail footprint is one of its core strengths, chairman and CEO Ynon Kreiz said in a Q2 earnings call.
Increased retailer support may help Mattel boost sales amid waning demand for Barbies, following the explosive success of last year’s blockbuster film.
What it means: Mattel is doubling down on consumers who want to discover, feel, and interact with its products in person—especially during the gift-giving season. Physical stores will generate more than half (50.7%) of toy and hobby retail sales this year, according to our July 2024 forecast.
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