Photo: RNZ / Dom Thomas
Being part of New World's latest promo is unlikely to hurt Smeg's higher-end image, even if people are picking up its products for nothing, marketing experts say.
The supermarket is offering baking dishes and utensil organisers in return for stickers collected at a rate of one per $20. Some items, such as the cast iron braiser, require cash on top of stickers.
Kitchen Things is selling Smeg casserole dishes for more than $450 and a set of three containers for $439.
Sarah Dodds, a senior marketing lecturer at Massey University, said it was a smart move for Smeg to be involved in the New World giveaway.
"It gives them exposure to a broader target market, a sensible growth strategy in today's market to increase market share.
"Although Smeg is typically positioned as a premium, designer appliance brand, partnering with a major supermarket like New World offers widespread visibility across New Zealand, creating brand awareness and interest from aspirational consumers who may not have previously considered high-end appliances."
She said giveaways could often generate excitement and goodwill.
"Associating the brand with a Kiwi supermarket can personalise the brand and increase its relatability.
"The key will be to preserve the brand's premium appeal while benefiting from New World's broad reach to grow the brand in New Zealand. Having said that, New World is positioned as a supermarket that offers quality product and a full-service, premium shopping environment, so in that sense, Smeg fits reasonably well with New World."
University of Auckland marketing professor Michael Lee said, if it was a new type of promotion, it could be detrimental to the Smeg brand, but the model was well known.
"New World has done enough of these now, all with high-end brands, that they have sort of become pseudo status promoters of the brands involved."
Foodstuffs said the promotion was a successful one, with 92 percent awareness among New World shoppers.
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