March 17, 2009
JoS. A. Bank Free Suit Offer Made for Tough Times
JoS.
A. Bank has the promotion for you if you’re among those trying to put your
best look forward at work or if you’re interviewing for a new job. The
company’s new
"$199 Sale" comes with a unique guarantee. If you buy a suit from
the retailer and subsequently lose your job, the chain will refund your purchase
price and let you keep the suit on top of it.
R. Neal Black, CEO of the men’s
clothing retailer, said in a press release, "We understand the uncertainty
everyone is facing. We want to help the customer look good at work, and
if he loses his job, to be dressed appropriately as he meets with his next
employer. It’s like giving all of our customers a bit of unemployment insurance."
The special promotion applies
to any suit or suit jacket/pants combination purchased from March 16 through
April 9, 2009. If the customer involuntarily loses his
job between April 16 and July 1, JoS. A. Bank will refund the price paid
for the suit, up to a maximum of $199. The company will require documentation
of a job loss to evaluate any refund requests.
Discussion Questions: What
do you think of JoS. A. Bank’s "unemployment insurance" offer? Will
it drive additional sales? Will we see others following this example
during the downturn?
BrainTrust
Recent Discussions
Discussion Questions
Poll
These guys are in trouble grasping at straws. They’ve had a 40% off sale all of 2009–looks like desperation continues….
I’m with Steven. This is definitely an example of “creative lateral application” (we used to call it something else) of Hyundai’s idea. Not that there’s anything inherently wrong with that. But I agree that it is unlikely to have the same reassuring effect as a car purchase. But it will call some new attention to an otherwise oft repeated tactic by Bank.
It’s another version of the Hyundai Assurance program (see also the Jet Blue Promise). The current economy is ripe for a return of the guarantee, i.e., merchants and manufacturers willing to stand by their products or offer a full refund.
This, however, is less guarantee and more “we’ve got your back” promo. And that’s equally good in this economy. It positions the brand as a partner in the down economy, one that’s willing to offer the customer a helping hand when times get tough, rather than just sell the consumer more stuff. And the timing for that subtle message is great in light of the growing backlash against the despicable behavior from companies like AIG.
Jos. A.Bank has a new “sale” at least every other day. Trust me, I’m on their mailing list. Monday it’s save $100; Tuesday it’s get second suit half off; Wednesday it’s three for the price of two. Their quality is decent, at least in their Gold Signature line. But frankly, what this discount dance does is cause distrust, making you wonder just what value you’re actually getting. Looks like they’ve worked overtime to come up with yet another pitch. Are they “feeling our pain,” responding out of the goodness of their heart and a deep spiritual commitment to the greater good? Nah.
This is a great example of creative marketing! What a fantastic way to differentiate yourself from your competition!
Well, they are certainly getting a lot of press. I suppose that’s better than doing nothing. But will this save what must be a deeply struggling concept? No, I don’t think it will. Sometimes there’s just nothing you can do, when your concept runs so antithetical to the trends.
I have known CEO Neil Black for years and I am not surprised to see him once again knowing how to effectively speak to his customer base.
Yes, the promotion is a bit silly, and borrows from others’ ideas (Hyundai, etc.). But it nails the current market psychology and press sound bites: the economy sucks, people are losing their jobs left and right, people are scared, etc. etc. The promotion shows that they get it, they are listening, and they are positioned as a value retailer to be helpful for a product that the consumer needs but may be scared to spend on. At a time when most retail stocks are in terrible shape, JoS. A. Bank (JOSB) is performing well over their peers and is up 8% YTD. Mr. Black, keep the promos coming!
I don’t like it. But we are talking about JoS. A. Bank and they are getting publicity out of it–good for them.
However, I don’t like it.
I think the idea is brilliant because all advertising is designed to do is:
1. Get people into the store.
2. Make them enjoy the experience so they will return.
3. Get their contact information for future promotions and newsletters.
4. Develop relationships with the customers family and friends.
5. Provide a good experience.
Plus, the fact is JoS. A. Bank shirt/tie combos are not cheap, nor are their accessories, so what you could potentially lose on the refund you would have made up for in accessory sales.
Yes, it’s a variation on the Hyundai offer, but in Hyundai’s case, they take back the car, absorb up to $7500.00 and if they make the 3 months payments for you (which they are now advertising) they deduct that from the $7500. The unemployed car owner is responsible for any amount over $7500.00 so it’s a bit of a dishonest offer.
JoS. A. Bank is always running some free or 40% off promotion. Every other day they air ads with a new one. The ads seem to run every 10 minutes and are so annoying because the announcer is to JoS. A. Bank what Billy Mays is to OxiClean. He’s so over the top. I grab the remote and change the channel every time a Joseph A. Banks ad comes on. I think they need to change their advertising and their voiceover. It’s become like annoying wallpaper.
JoS. A. Bank has staked out an interesting market position for itself: Men’s traditional clothing (especially suits and sport coats) at highly promotional prices. They have staked out a value posture far below Brooks Brothers or even most department stores (with some expected compromises in quality), and have a less updated point of view than Men’s Wearhouse stores. Barely a week goes by without a deep discount on men’s clothing, including an offer after the holidays of “Buy a suit, get two free.” Their last earnings release indicates the formula seems to be working.
The latest promotional idea is a good one: It highlights the bargain-basement prices for suits that JoS. A. Bank is known for, and draws potential shoppers off the fence if they are hesitating to spend money on career clothing right now. The downside risk to JoS. A. Bank (refunding $199 if the customer loses his job) is relatively small compared to the likely increase in sales and brand awareness. Good idea!
Great customer service gesture. Seeing the same thing from Hyundai in the US and Kia in Canada. Customers will eat this up. Right now, consumers are contending with a very unfriendly retail environment. Unique customer service initiatives is what will get shoppers in the doors. JoS. has played it well with this campaign. Take a concept that is on everyone’s mind (the economy) and offer a solution to build confidence in spending.
I have a question though. The first sentence in the article talks about interviewing and looking good with a new suit. Is this offer for someone who does not currently have a job, gets a job, then loses their job? Or is it for people with jobs, who buy a suit and then lose their job?
“Yes, I may have just lost my job, but I get my $199 back. Hooray!”
I can’t put my finger on it, but there is something about this promotion I just don’t like. Maybe because it is so blatant in taking advantage of the recession? It seems to me if you want to use the current economic situation as a promotional tool, you might help someone buy a new suit for a job interview. (No, they don’t really have to be going for an interview, they just have to tell you they are.)
Let’s not confuse a great offer designed to generating revenue with a great offer designed to get publicity. While this might increase sales, I would seriously wonder how this will impact on the bottom line six months down the road.
The refund is only up to $199. I haven’t bought a suit there but my guess is they run a heck of a lot higher than $199. You go in one of those places and they try to up-sell you ties and socks as well. When you consider the suits probably only cost a small fraction of the retail price, I’m sure they have the $199 covered and have nothing to lose.
Sounds like a good promotion. Maybe I will buy a new suit and then fire myself. Even though I might not be entitled to unemployment, maybe I can get a $199 discount on a nice suit. I will have my senior executive vice president of human resources get on this right away with the termination.
This is a variation on Hyundai’s Assurance program. While that might influence someone to feel comfortable in making a large purchase like a car, I don’t see this deal being enticing enough to a large segment of the suit-buying population to drive sales. I think they would be better off to offer something that is likely to appeal to a broader range of customers such as “X” off a suit.
It seems like the promotion should be for all the people who are looking for new jobs because they have been laid off. They are the ones who need a good suit!
Love it! What a great way to let your customer know you understand their ‘pain’ and are (to be a bit sappy) there for them. And, at the same time, know that you probably won’t need to be writing very many refund cheques along the way. This is the great ‘puppy dog close’ at work, and it almost always results in more sales without many more refunds.
On top of that, this will get them noticed in the media and get their name out there. You couldn’t afford that type of advertising exposure. Well done.
Suits me! You can bank on it.
I’m with Gene on this: there’s a thin line between helping people and exploiting them, and this promo dances with both sides; and also with ‘Janpoor’: JOOOSEPPPPH A BANKS !!!
…enough already!
More Discussions
As Boomers ‘Age Out of Peak Purchasing,’ How Can National Brands Retain Interest With Gen Z?
According to a recent First Insight study titled “Is Gen Z Still Choosing Your Brand,” while…Is Supply Chain Volatility Here To Stay?
Can we expect an ongoing volatility to remain in terms of retail supply chain?Has Same-Day Delivery Become an Expectation Across Retail?
Are expectations around retail delivery speed in flux?
These guys are in trouble grasping at straws. They’ve had a 40% off sale all of 2009–looks like desperation continues….
I’m with Steven. This is definitely an example of “creative lateral application” (we used to call it something else) of Hyundai’s idea. Not that there’s anything inherently wrong with that. But I agree that it is unlikely to have the same reassuring effect as a car purchase. But it will call some new attention to an otherwise oft repeated tactic by Bank.
It’s another version of the Hyundai Assurance program (see also the Jet Blue Promise). The current economy is ripe for a return of the guarantee, i.e., merchants and manufacturers willing to stand by their products or offer a full refund.
This, however, is less guarantee and more “we’ve got your back” promo. And that’s equally good in this economy. It positions the brand as a partner in the down economy, one that’s willing to offer the customer a helping hand when times get tough, rather than just sell the consumer more stuff. And the timing for that subtle message is great in light of the growing backlash against the despicable behavior from companies like AIG.
Jos. A.Bank has a new “sale” at least every other day. Trust me, I’m on their mailing list. Monday it’s save $100; Tuesday it’s get second suit half off; Wednesday it’s three for the price of two. Their quality is decent, at least in their Gold Signature line. But frankly, what this discount dance does is cause distrust, making you wonder just what value you’re actually getting. Looks like they’ve worked overtime to come up with yet another pitch. Are they “feeling our pain,” responding out of the goodness of their heart and a deep spiritual commitment to the greater good? Nah.
This is a great example of creative marketing! What a fantastic way to differentiate yourself from your competition!
Well, they are certainly getting a lot of press. I suppose that’s better than doing nothing. But will this save what must be a deeply struggling concept? No, I don’t think it will. Sometimes there’s just nothing you can do, when your concept runs so antithetical to the trends.
I have known CEO Neil Black for years and I am not surprised to see him once again knowing how to effectively speak to his customer base.
Yes, the promotion is a bit silly, and borrows from others’ ideas (Hyundai, etc.). But it nails the current market psychology and press sound bites: the economy sucks, people are losing their jobs left and right, people are scared, etc. etc. The promotion shows that they get it, they are listening, and they are positioned as a value retailer to be helpful for a product that the consumer needs but may be scared to spend on. At a time when most retail stocks are in terrible shape, JoS. A. Bank (JOSB) is performing well over their peers and is up 8% YTD. Mr. Black, keep the promos coming!
I don’t like it. But we are talking about JoS. A. Bank and they are getting publicity out of it–good for them.
However, I don’t like it.
I think the idea is brilliant because all advertising is designed to do is:
1. Get people into the store.
2. Make them enjoy the experience so they will return.
3. Get their contact information for future promotions and newsletters.
4. Develop relationships with the customers family and friends.
5. Provide a good experience.
Plus, the fact is JoS. A. Bank shirt/tie combos are not cheap, nor are their accessories, so what you could potentially lose on the refund you would have made up for in accessory sales.
Yes, it’s a variation on the Hyundai offer, but in Hyundai’s case, they take back the car, absorb up to $7500.00 and if they make the 3 months payments for you (which they are now advertising) they deduct that from the $7500. The unemployed car owner is responsible for any amount over $7500.00 so it’s a bit of a dishonest offer.
JoS. A. Bank is always running some free or 40% off promotion. Every other day they air ads with a new one. The ads seem to run every 10 minutes and are so annoying because the announcer is to JoS. A. Bank what Billy Mays is to OxiClean. He’s so over the top. I grab the remote and change the channel every time a Joseph A. Banks ad comes on. I think they need to change their advertising and their voiceover. It’s become like annoying wallpaper.
JoS. A. Bank has staked out an interesting market position for itself: Men’s traditional clothing (especially suits and sport coats) at highly promotional prices. They have staked out a value posture far below Brooks Brothers or even most department stores (with some expected compromises in quality), and have a less updated point of view than Men’s Wearhouse stores. Barely a week goes by without a deep discount on men’s clothing, including an offer after the holidays of “Buy a suit, get two free.” Their last earnings release indicates the formula seems to be working.
The latest promotional idea is a good one: It highlights the bargain-basement prices for suits that JoS. A. Bank is known for, and draws potential shoppers off the fence if they are hesitating to spend money on career clothing right now. The downside risk to JoS. A. Bank (refunding $199 if the customer loses his job) is relatively small compared to the likely increase in sales and brand awareness. Good idea!
Great customer service gesture. Seeing the same thing from Hyundai in the US and Kia in Canada. Customers will eat this up. Right now, consumers are contending with a very unfriendly retail environment. Unique customer service initiatives is what will get shoppers in the doors. JoS. has played it well with this campaign. Take a concept that is on everyone’s mind (the economy) and offer a solution to build confidence in spending.
I have a question though. The first sentence in the article talks about interviewing and looking good with a new suit. Is this offer for someone who does not currently have a job, gets a job, then loses their job? Or is it for people with jobs, who buy a suit and then lose their job?
“Yes, I may have just lost my job, but I get my $199 back. Hooray!”
I can’t put my finger on it, but there is something about this promotion I just don’t like. Maybe because it is so blatant in taking advantage of the recession? It seems to me if you want to use the current economic situation as a promotional tool, you might help someone buy a new suit for a job interview. (No, they don’t really have to be going for an interview, they just have to tell you they are.)
Let’s not confuse a great offer designed to generating revenue with a great offer designed to get publicity. While this might increase sales, I would seriously wonder how this will impact on the bottom line six months down the road.
The refund is only up to $199. I haven’t bought a suit there but my guess is they run a heck of a lot higher than $199. You go in one of those places and they try to up-sell you ties and socks as well. When you consider the suits probably only cost a small fraction of the retail price, I’m sure they have the $199 covered and have nothing to lose.
Sounds like a good promotion. Maybe I will buy a new suit and then fire myself. Even though I might not be entitled to unemployment, maybe I can get a $199 discount on a nice suit. I will have my senior executive vice president of human resources get on this right away with the termination.
This is a variation on Hyundai’s Assurance program. While that might influence someone to feel comfortable in making a large purchase like a car, I don’t see this deal being enticing enough to a large segment of the suit-buying population to drive sales. I think they would be better off to offer something that is likely to appeal to a broader range of customers such as “X” off a suit.
It seems like the promotion should be for all the people who are looking for new jobs because they have been laid off. They are the ones who need a good suit!
Love it! What a great way to let your customer know you understand their ‘pain’ and are (to be a bit sappy) there for them. And, at the same time, know that you probably won’t need to be writing very many refund cheques along the way. This is the great ‘puppy dog close’ at work, and it almost always results in more sales without many more refunds.
On top of that, this will get them noticed in the media and get their name out there. You couldn’t afford that type of advertising exposure. Well done.
Suits me! You can bank on it.
I’m with Gene on this: there’s a thin line between helping people and exploiting them, and this promo dances with both sides; and also with ‘Janpoor’: JOOOSEPPPPH A BANKS !!!
…enough already!