With lines such as ‘High Prices? Tell them they’re dr-eeming’; ‘Don’t make high prices the Norm’ and ‘Why pay HIgher elsewhere?’, Appliance Outlet is also using billboards near those competitors’ locations to reinforce its point.
One marketing expert has welcomed the campaign, and at least one of the big-chain stores has taken it in the spirit it was delivered.
The agency behind the billboards, Art of the Possible, said the campaign reflected “a confidence and competitiveness rarely seen in New Zealand advertising today”.
“Offshore, you tend to see far more head-to-head banter between brands – a bit of healthy rivalry that keeps categories interesting,” said Art of the Possible ANZ director Adam Brami.
“In New Zealand, we’ve grown more apologetic in how we market ourselves, which probably reflects our good-natured personality as a nation.
“But it wasn’t always that way. From Energizer versus Duracell to rivalries between grocery chains, car brands and carbonated drinks, competitive tension was once a more prevalent avenue for driving creativity and consumer choice.”
Appliance Outlet is targeting its new campaign on billboards near the stores of its bigger rivals. Mock-up photo / supplied
Brami said this campaign tapped back into that spirit.
“It’s a reminder that challenger brands can call out the category leaders with wit, warmth and good-natured Kiwi humour.
“At the end of the day, New Zealand is a challenger brand on the global stage – a nation of underdogs who love to punch above our weight. That spirit is part of who we are, and it’s what makes campaigns like this so distinctly ‘us’.”
Appliance Outlet owner Russell Clements said the campaign celebrated the east Auckland store’s “playful challenger mentality”.
“We know Kiwis appreciate straight-talking value – and a bit of humour.
“We wanted to have a little fun while reminding people that there’s a smarter, more sustainable way to shop for appliances. Every item we sell has been tested, guaranteed, and priced fairly – so the only thing we cut corners on is price.”
Appliance Outlet says it sells a range of appliances: Some brand new, some box damaged, some with cosmetic damage – such as scratches or dents – and some that are refurbished.
These latter products “have been previously used for a short period of time, and then returned to another retailer after a fault has been found. The product has then been fixed or mended by one of our team of service technicians, and returned to its former glory”.
Appliance Outlet is a small New Zealand owned retailer based in east Auckland.
The billboard campaign has been conceived to coincide with the pending Black Friday deals, “reminding Kiwis that paying top-shelf prices for the same products simply may not make sense”.
“When taken home, unboxed and switched on, these are the same models, same performance, and same experience you’d find at the country’s largest appliance retailers – just without the price tag to match.”
Retailers respond
A quick scan of Appliance Outlet’s website shows that products that have “box damage” or “cosmetic damage” can sell below the usual retail price.
For instance, it has a 98-inch Samsung high-definition TV that it says is “box damaged” priced at $7992. It’s priced at $8497 at another store.
An LG top-loader washing machine with cosmetic damage – some scratches – is selling for $799, several hundred dollars cheaper than elsewhere.
However, the bigger chains are also preparing for their own major Black Friday and Christmas deals.
A spokesman for Noel Leeming said: “We’re stoked to see the extra love for the largest Kiwi-owned electronics brand in Aotearoa. So we welcome the competition and free advertising just in time for Black Friday. We’ve got deals that others can only ‘dreem’ of.”
Harvey Norman and JB Hi-Fi declined to comment.
The battle of brands
Massey University marketing professor and industry expert Bodo Lang said of the campaign: “I absolutely love it”.
“I’m often flabbergasted by how unimaginative advertising is, particularly out of home advertising – billboards, bus shelters seldom use the context in which they’re placed, to their advantage. This is exactly what that campaign is doing.
“The visuals are really easy to understand, and even if you don’t see the retailer that is being compared to in the background, immediately you know which brand it is referring to, even though only part of the logo is displayed.”
Massey University marketing professor Bodo Lang. Photo / Supplied
He did not think the bigger retailers would care too much, or that there was a risk of breaking consumer laws or the Advertising Standards Authority code, as the statements were generic.
It was critical that the advertiser itself, Appliance Outlet, could back up price expectations and assertions, especially on its website, which was where most consumers would head initially.
“When you compare like for like, is the Appliance Outlet that much cheaper? If it is, then they have a real proposition on their hands.
“If they can only say, well, actually it’s only last year’s model or only the few leftovers from the last production run of the microphones or headphones or whatever it is you’re comparing, then it’s not that compelling.
“But undoubtedly the campaign will increase consumer awareness of the brand.”
Coke and Pepsi have enaged in frequent head-to-head marketing over the years.
Lang said one reason why retailers did not engage in more head-to-head marketing could be that it was more difficult these days to identify a unique selling point.
“There are very few or even no exclusive deals unless you’re the Nike store or the Apple store or something.
“You can get most products in most stores – sometimes this one’s cheaper, sometimes that store’s cheaper. There are virtually, to my knowledge, no stores that can claim to be the cheapest across everything they have.
“So why do retailers not do this more frequently? I think it’s simply because they lack the competitive advantage to consistently provide a meaningful point of difference.”
He had looked at meta-analysis of 1700 academic studies into comparative advertising – this analysis found it can have an effect on consumer behaviour, but it’s not necessarily huge, he says.
Again, it will depend on specific campaigns. “It’s not going to fundamentally drive consumer behaviour … it may not be the largest determinant of consumer behaviour, but it will have an impact.”
A Whittaker’s chocolate ad – taking aim at Cadbury – from 2010.
He cited comparative campaigns in New Zealand over the years, including Pak’nSave, which has sometimes cited Countdown/Woolworths in its price comparison advertising; Whittaker’s taking on Cadbury; and even ASB’s Ira Goldstein – slightly more subtle with Goldstein coming from an American bank to find out what made the Kiwi bank tick.
Consumer advice
Watchdog agency Consumer last week urged customers to shop around as the Black Friday and Christmas deals started to ramp up.
“Just because it’s got a special sticker on it or a promotional tagline like ‘hot deal’ doesn’t mean that product you’ve got your eye on is on special,” said Consumer communications and campaigns adviser Abby Damen.
Consumer has good advice for shoppers looking for Black Friday bargains.
“Make use of sites like PriceMe or PriceSpy to see how much the item you’ve got your eye on usually sells for. You’ll quickly see whether that ‘half-price’ deal really stacks up – or the product has been hovering at that price for months.”
Damen also warned shoppers to be wary of online reviews.
She said a World Economic Forum report in 2021 found that fake online reviews translated to billions of dollars in spending globally.
“… be suspicious of sites that use pressure tactics like countdown timers or scarcity cues – that is, ‘only one left!’. Look past the Fomo [fear of missing out]. You probably won’t miss out.”
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.