Supermarket franchise Pak’nSave’s no-frills approach extends to its marketing spend, but it continues to get results from its campaigns starring the iconic Stickman.
The famously cost-focused brand has certainly been living up to its motto “Everything we do, we do to save you money” – its marketing budget has been the same for seven years.
But that’s not the only challenge for Pak’nSave’s marketing team of seven (eight if you count Stickman himself), led by Head of Marketing Jamie Hodgetts.
Pak’nSave is a co-operative, part of Foodstuffs North Island and Foodstuffs South Island, which are both independently run. The 58 stores are owner-operated, and owners are shareholders, spending their own money on marketing.
This means marketing decisions aren’t easy, particularly within a model based entirely on (highly scrutinised) cost efficiency.
The Pak’nSave marketing team’s Awards entry highlights the complexities involved: “There is a lengthy and hierarchical process to make any shifts in strategy – or stick with the status quo. It means managing multiple stakeholders. The Board. Two Banner Review Groups. The owners. The CEOs. They all get their say.
“Contrast this process with one you might encounter in a typical corporate where the marketing team might go to a few key stakeholders, get a ‘yep’ and be in-market. The marketing team goes through this lengthy process every year to reset the marketing strategy.”
In 2023, the marketing team undertook a significant qualitative research project to check that the entire marketing strategy was fit for purpose. The verdict? It was.
“Keeping an 18-year-old marketing strategy – articulated by an iconic, singular, low-cost campaign – alive,
with persuasive new ideas is a constant challenge. Through careful stakeholder engagement, and a focus on long-term effectiveness, it is a legacy we have, so far, lived up to.”
Every idea and bit of work from the marketing team goes through a single-layered filter: ‘Does it save our customers money?’ If the answer is no, it doesn’t progress to the next stage of consideration with stakeholders.
“Our relentless commitment to this has ensured our perception as New Zealand’s lowest priced supermarket is at a record high,” the team says.
“As a team, we demonstrate our commitment to our brand promise in every interaction with our stakeholders to ensure it is passed on to and understood by everyone throughout the business. But it is not as easy as you might think, especially when faced with endless new insights and data, and when our competition is on a mission to erode our position.”
In 2023, as household budgets were stretched, Pak’nSave’s clear brand position meant more shoppers chose it as their trusted low-cost supermarket, as evidenced by record lowest-price perceptions and share results.
“By sticking with our strategy, we successfully grew share in the face of increasing competition, achieved a record perceived price differential, and ensured the campaign continues to be on-brand, fresh, innovative and entertaining – Stickman was more popular in 2023 than ever before.”
Pak’nSave’s marketing team achieved notable success across a number of facets in 2023, including business impact and creative excellence.
The latest iteration of the long-running campaign picked up a slew of awards last year, being recognised at Axis, ORCAs and Festival of Media APAC.
Smart media thinking added to the campaign’s impact and efficiency, via creative and unique use of channels and through a dynamic local approach to proving Pak’nSave’s price differential to Woolworths.
The brand also saw success in Kantar’s Corporate Reputation Index, which scores organisations across responsibility, trust, leadership and fairness, vaulting to third in NZ overall (up two places from 2022) and first for supermarkets.
It was also voted Reader’s Digest Most Trusted Supermarket for the 13th consecutive year, scoring top marks, with customers commending Pak’nSave for its range of quality brands and commitment to affordable prices.
But perhaps this is the best indicator of the Pak’nSave marketing team’s commitment to the cause: according to the Awards entry, one team member is now sporting a Stickman tattoo.
“For most people, getting a tattoo for work would be madness. But not for one team member with a passion for low prices. Willing to do anything for great creative, a tattoo ‘agreement’ was signed, and one sexy Stickman now lives in ink… forever!”
Judges’ comments
“Given the challenging operating and market environment, the judges felt that the Pak’nSave marketing team is very intentional in their teamwork and collaboration. Practical opportunities abound for team members to step up, demonstrating clear progression and alignment with strong team values and strategic goals. They truly enjoy each other’s company, as evidenced by their willingness to share an Airbnb when on the road.”
This was first published in the 2024 September-October NZ Marketing Magazine issue. Subscribe here.
