How Promotions Can Fail - An Example

Ala Moana Shopping Center is Hawaii's largest mall.  It features Macy's and Nieman Marcus as anchor stores, high end shops like Abercrombie and Fitch, and a variety of food in a food court along with standard fast food operators like McDonald's and Arby's.

Most stores in the mall depend on traffic generated by the mall's appeal to create visibility and sales.  That's why you pay the big rents at popular malls like Ala Moana.  Occasionally malls feel the need (often prompted by vocal but not-very-sophisticated) of small merchants to "do something" to boost sales.  After all, these stores are generally paying into a merchant marketing fund.  In my career, I've had outlets in malls and I've always told the mall management to spend the marketing money to drive traffic to the mall - not to try to advertise my store.  I'd be happy with more traffic.

This Independence Day Holiday, the management of Ala Moana apparently succumbed to pressure from small operators to run a promotional ad in the Sunday newspaper.  The ad probably made the merchants happy but I doubt that it generated real business for the mall or its tenants.  Here's why:

• It's difficult for the consumer to understand or use.  The ad copy says "show this pass at any participating store from July 3-6 and receive 20% off one regular priced item per store per day."  What "pass"?  There's no actual "pass" or coupon.  The consumer is expected to understand that the whole ad is a coupon based on a tiny scissors icon which appears (delicately) on the side of the ad.  
• The "Big News" ... 20% savings ... is buried in the ad.
• It's difficult to administer.  How are the stores going to enforce the "one regular priced item per store per day"?  The type is so small, they can't use a stamp or even write in some sort of validation.  
• With small merchants, I'm willing to bet that many of the sales staff won't be aware of the promotion.  There's nothing more frustrating for a consumer than to go into a store expecting to get a discount and have the sales associate say "I have to check with the manager."  Or ... try to figure out how to ring up the discount on a point of sales system.  
• The ad features a lot of stores, but not the ones that the customer may actually care about.  There's nothing here for Macy's, Nieman Marcus, or Abercrombie & Fitch.  There are a few food outlets including Jack in the Box, but not McDonald's or Arby's. 

Here is another case of marketing dollars that probably will go to waste.