In-store Sales Promotions

Since its inception, dENiZEN has launched several in-store promotions island-wide in all of its stores. As a young brand that spins off from a premium jeans brand – Levi’s, dENiZEN hopes to leverage on the jeans maker specialty of Levi’s. Has it been successful? Maybe, maybe not.

In-store sales promotions are highly visible outside and/or in the stores with board displays and rack displays. By capturing attention of any customers that walked pass the shop, the hard-to-miss-out promotion messages will entice customers to step into the store and give a try on the jeans. dENiZEN aims to encourage the customers to try out its jeans and thereby judge it quality by themselves. 

Given its current brand positioning in Singapore, dENiZEN is facing a few challenges and dilemma when designing sales promotions. At one end, it wished to encourage more trial rates among new and potential customers, yet another, dENiZEN aims to build a strong brand that resonates with the aspiring youths. By running intensive sales promotions might in fact be hurting the brand equity of dENiZEN, to the extent that the wrong group of customers are forming the core customers base.

As a 1-year-old brand, dENiZEN is currently still trying to achieve a high level of brand awareness. Moving on, it is crucial that sales promotions are only launched on a cyclical basis instead of a regular basis. By lowering the prices of jeans when bundled together, customers will probably perceive the quality of dENiZEN jeans to be as low as what they pay for. Customers may only purchase when there are sales promotions as they do not see the premium in the higher prices they pay during non-sales period. The price-quality inference of dENiZEN jeans may not be as favorable as it aims to be. 

Sales promotions might be a useful tool at the initial stage of creating brand awareness, but it is a double-edged sword which can in turn dilute the brand equity. In this case, dENiZEN might not be able to leverage on Levi’s brand values given its current brand image in the eyes of the customers in Singapore.