Many brands are offering gifts this Chinese New Year, and Subway is no exception. What is unique about subway though, is that they are marketing on a budget. Subway is giving out free red packets with every purchase of a meal. This promotion can be found at any subway store in Singapore.
Marketing on a budget – Red Packets
Red Packets by Subway
What is marketing on a budget?
Marketing on a budget is basically marketing at a very low cost. It can be considered as a form of guerrilla marketing as the aim is to make maximum impact while incurring the lowest cost possible. This usually is done by offering gifts which are cheap to manufacture but at the same time is attractive enough to entice customers to purchase your goods for the gift. Not only is marketing on a budget suitable for small firms, larger enterprises may want to adopt such a method to cut costs and boost sales at the same time.
Benefits of marketing on a budget
The first benefit is that costs are low. Red packets are essentially made of paper and producing them is cheap. Especially when the red packets are produced in bulk, economies of scale is achieved; bringing the cost per red packet even lower.
Another benefit is that it serves as a form of advertising. Subway’s logo is printed at the back of the red packet. When customers give this red packets to their relatives, their relatives are sure to notice the subway logo when opening the red packet.
Thirdly, this promotional gift encourages repeat purchases. Customers just can’t get enough of the red packets especially when it is a necessity for Chinese New Year. If customers can eat at Subway and get free red packets at the same time, they would not have to go through the trouble of spending extra money to buy red packets from elsewhere. Hence, by having a gift such as red packets encourages customers to keep coming back and make repeat purchases.
