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Understanding Marketing Strategy


#1

I’ve been a member of TWS for about 15 years and a supporter of Majestic for many more. I like Majestic because of the staff, the tasting availability, and the frequent tasting events. All available at TWS too of course, but not locally.

I have however become increasingly irritated by the pricing policies at Majestic and a few months ago I decided, regretfully, to stop buying there. Now I’ve been sent one of their money-off vouchers to entice me back. I’m pretty sure I’ll use it.

What I’m wondering is if I buy some wine and use the voucher, then don’t go again for a few months, will I get another voucher? Would this make commercial sense for Majestic? It somehow seems strange to me that if you purchase there regularly you get no “reward” but if you stop buying you do. Anyone have any thoughts or enlightenment on this?


#2

I have come across and used similar ‘schemes.’ I regularly buy my teas from the Kent and Sussex Tea and Coffee Company - an excellent place to buy teas, often down to the individual estate level - and they run 10% or more offers so regularly that when I want to order more tea I will wait until the next offer email drops into my inbox.

Seems silly to me. They do it so often that it would be frankly silly to order at the full price.

Not quite the same issue you describe but similar.

Of course what it is really similar to is the currently topical fuss over people being penalised for loyalty to insurance companies and moves to stop them doing so.


#3

I know from a previous job, someone started who had recently left Argos, basically if the sales were looking down they would offer those £5/£10 gift cards for spending £x amount, not sure if its the same with vouchers etc but was an interesting insight. We just offer our wines at the best possible price all year round for our members.


#4

I’m in the same boat with Majestic as a company - I like much of their selection but the pricing really frustrates me. Over inflate the price, offer a discount (only if you buy enough bottles) and cause much confusion so nobody really knows if its a good deal

I stopped buying there and sure enough, a £30 voucher came through the door and was promptly spend. Next month - another £30 voucher, again spent. Next month - yet another voucher which I didn’t get round to spending. Nothing since. I’m fairly sure I’ll see another one after Christmas but until then I’ll stick to TWS with a much better range and some more “honest” pricing

I also feel Majestic suffer from fewer aged wines so much of the higher end bottles are a way away from their peak. It makes me realise how spoiled we are as TWS members!


#5

I guess this is the major difference between the ethos of a cooperative and that of a ‘business’ in the more traditional sense. As members, we benefit from the same bottles and are privy (in most cases, taking slow/miscommunication into account) to the same deals and offers. There are no ‘best’ members, or ‘great spender of the month’- though of course, we all purchase what our wallets will allow - and our wallets are different.

I, too, get regular vouchers from Majestic. I do like Majestic- they were pretty much my introduction to the wine world, when I grew weary and bored of buying the same supermarket wines. I learnt a lot through their staff, and from their occasional leaflets and tastings. But TWS is now where I purchase most of my wines, and so every so often I will get a voucher from Majestic luring me back - which I invariably use.

Loyalty to a business seems a strange modern concept; it’s funny, but recently I got a letter from Majestic stating that “as their loyal customer they want me to be the first to know about their ‘Black Books’ wine scheme”. This was defined as “An Autumn selection of rare and special finds for our most loyal customers”.

My loyalty is very much in question, yet this is the second letter I get about scheme x or scheme y designed especially with their ‘loyal customers’ in mind. I can see the logic of rewarding loyal customers (thought their choice of ‘me’ is clearly flawed, or a cynical sort of invitation) - but it inevitably creates a ‘hierarchy’ of customers.

Perhaps I’m just not made for capitalism! :thinking:


#6

Yes, wasn’t thinking about insurance but of course it’s almost exactly the same thing. I was furious when I found I could renew my car insurance - same policy, same company - more cheaply on the internet than by responding to their renewal letter. Crazy! Or do they really rely so much on customer inertia.


#7

Call me a cynic but I’m not sure they have a hierarchy of customers - I almost never buy wine from Majestic and also received that letter, and routinely get the vouchers through the post. My approach to the vouchers is that it makes their previously over-priced wine about the right price - but then again, I am a cynic! :wink:


#8

I wonder if the amount of the voucher correlates with your spending? The reason I ask this is that I too used to shop there, but in line with tight budgets only spent a limited amount. I have not shopped there for ages and did receive a voucher to spend some time ago - I am almost sure it was only for £10 though.


#9

:point_up_2::+1: This! Whenever I see big discounts or what appear to be extremely generous offers on wines I just instantly pigeon-hole it as a product that was massively overpriced in the first place.

I generally think that Majestic is relatively well priced against its retail competition and the supermarkets when you’re getting the multi-buy discount, and bordering on daylight robbery if you’re not. Similarly, it must have been well over 6 months and possibly 12 since I’ve bought from Majestic but I still get the vouchers every now and then. This is a thing though - I’ve only just stopped getting calls from Lthwt*s despite not having bought from them in about 4 years…


#10

Another ex-Majestic customer here (4x £30 vouchers, none used). Majestic closed their branch in Preston, and tried to show the way to Lytham St Anne’s where they had opened a new outlet. I didn’t need any wine at that time but went along just for a drive out of Hutton.
I didn’t fancy any of the wines open for tasting, so to pass the time I asked the manager if they stocked any Fronton, not only did they not carry that line He had never heard of it !!!
The following weekend I travelled down to London, and is my wont when there, accompanied my son-in- law Tim to Balham branch, and whilst he filled the trolley I wandered round and asked a member of staff the “Fronton” question.
He failed, but said he would ask the branch manager, he did so right away and guess what the manager came over and he failed the “Fronton” query.
So the die was cast, I decided Majestic was no longer worthy of my custom, as well as never having heard of the F word, the range of French wines seems to be diminishing and as I allow myself very few Foreign wines ie wines other than French, I could only see myself having diminishing pleasure in a visit to Majestic. :nerd_face::innocent::rose::wine_glass::wine_glass:


#11

It sounds like you have no negrettes.

I’ll get me coat…


#12

Just got this email from a well known retailer…

Hi Robin,
I’m fascinated by you
So I’m offering you 6 bottles (worth £66.44) for less than 21 quid.

I thought this was a bit creepy…


#13

:open_mouth: OMG!! That’s hilarious… I hope they don’t know where you live :rofl::rofl:


#14

I know there’s a lot to be said for the personal touch, but that’s getting personal enough to make one worry about being touched…


#15

Crikey, I hope the spam filter caught it.

CHEAP MEDZ PRINTER INK ENLARGEMENT 2005 CLARET CLICK THIS LINK BONA FIDE


#16

'Tis rather 50 Shades of Grey… :grimacing:


#17

No, this is Naked Wines - I used to be a customer, so it’s legitimate them writing to me. There were two reasons I dropped them

  1. I couldn’t stand their convoluted pricing - everything is supposedly £12.00 but your price, £9.50 (or whatever.)

  2. More importantly, the wine they were pushing was not the kind of wine I like to drink.


#18

Supports my 50 Shades of Grey remark :wink:


#19

I laughed aloud at the fronton / negrettes. To the next of my hifi speaker is 2 cases of fronton/negrettes, fresh from a dubious St John’s visit. i was surprised anyone even knew what the grape was!!!

I have been involved in marketing in a former life, but when the wine society reneged on their prices for vergelegen I was very disappointed, how is that in anyway better than majestic :frowning:


#20

Yes that was painful (I was straight in there for the bargain V), but in my opinion the real mistake would have been to stick to the erroneously communicated price. In that case other lines would have had to fund this loss making offer.