Freixenet
‘Free Music, Free Movies, Free Freixenet’ promotion helps Freixenet to engage with customers and create brand loyalty
09/11/09: Freixenet, a leading producer of Cavas and Still Wines, is working with coupon services provider Valassis Ltd to launch a promotional marketing campaign in partnership with LOVEFiLM.com. Freixenet is embracing the belief that ‘staying in is the new going out’ by encouraging consumers to drink its Cordon Negro Brut, Cordon Negro Medium Dry and Cordon Rosado drinks at home. The company has launched a neck ring promotion in all major supermarkets, which entitles Freixenet customers to claim a number of rewards including free movies from LOVEFiLM, the UK’s largest online DVD rental service and entertainment website.
Freixenet is one of the most renowned Cava houses in Spain, accounting for approximately 10% of the sparkling wine market in the UK today. Cordon Negro Brut, its flagship ‘black bottle’ Cava which is stocked in high-end off-licences and retail outlets across the country, is number one in the market in terms of value. But with today’s unstable economy, luxury brands have had to adapt to consumers paying more attention to how they spend their hard-earned money.
Natalia Celemin, Brand Manager at Freixenet, says, “People are staying in more in the evenings to save money, which means they can afford to treat themselves to something special to drink at home. We believe that people will often want something more rewarding than a standard bottle of wine. Instead, they will be tempted to reach for the altogether more sophisticated Cava. We decided to run a coupon promotion to encourage people to choose Freixenet and to reward customers’ brand loyalty whilst also protecting the value of the brand. We run limited price promotions, but we see this particular value-added promotion, including the coupon, as an effective way of engaging with our customers.”
The neck ring promotion guarantees four rewards for every customer, which includes one month’s free subscription to LOVEFiLM. Included in the LOVEFiLM subscription is a free bottle of Freixenet and this is where the company’s work with Valassis comes into action. On signing up to LOVEFiLM and within 30 days of despatch of their first DVD rental, the consumer will receive a coupon for a free bottle of Freixenet Cordon Negro Brut, which can be redeemed at all the major supermarkets.
Celemin continues, “Having worked with Valassis in the past, we knew that they were experts in couponing and that Valassis would make life easy for us. Also, Valassis works with all of the major supermarkets which meant that we could run a national campaign in all of these stores without having to go through more than one company. Given the size of Valassis, we were confident that the company could support a national campaign with ease. We have found the staff at Valassis to be extremely helpful, and they are professional in the way they execute their business. I can certainly see us working towards another campaign with Valassis in the future.”
Charles D’Oyly, managing director of Valassis Europe, says, “Coupons are a cost-effective means of engaging with consumers and increasing sales, making them an indispensible part of any promotional marketing campaign, especially in the recession when marketing budgets are being cut and consumers are more promotionally responsive. According to recent research commissioned by Valassis, one in three consumers are looking for promotions more now than they were a year ago and 77% of consumers use coupons for supermarket shopping. Even wealthy consumers are seeking out more bargains, with 26% of AB consumers now careful to remember their coupons when going to the supermarket compared with a year ago.”
D’Oyly adds, “We are very pleased to be supporting Freixenet with this campaign. There is a growing trend amongst consumers to stay in rather than go out, and Freixenet has shown initiative in responding to this with a promotion that will help it to engage with its customers and maintain its market share whilst protecting its brand values throughout the recession.”