Three-Tier Black Friday Positioning

A framework for how different types of brands approach Black Friday sales and discounting strategies based on their market positioning.

Why Brands Discount

• Inventory management
  • Clear excess inventory that ties up cash
  • Handle seasonal or expiring products
• Revenue goals
  • Boost sales numbers
  • Increase profit through volume
• Black Friday provides "air cover" for discounting without brand dilution

Three-Tier Brand Framework

1. Low-End Brands

   • Always competing on price
   • Regular discounting strategy
   • Known as "discount brands"
   • Focus on value-conscious consumers

2. Mid-Tier Brands (e.g., Nike)

   • Balance value and brand premium
   • Use Black Friday strategically
   • Participate in discounting without appearing desperate
   • Leverage collective discounting for brand protection

3. Luxury Brands

   • May avoid discounting completely
   • Sometimes increase prices during Black Friday
   • Use the period as a branding moment
   • Reinforce premium positioning
   • Focus on exclusivity over volume

Impact on Business

• Revenue concentration
  • Some businesses do 50% of annual revenue in 6-8 week holiday period
  • Period between Black Friday to Christmas shipping cutoff is crucial

Creative Strategies

• Reverse pricing (Jack Butcher example)

  • Increase prices leading up to Black Friday
  • Use as counter-positioning strategy
  • Reinforce premium brand status

• "Leaked" email tactic

  • Send fake internal email with discount code
  • Follow up with "mistake" acknowledgment
  • Create urgency and exclusivity
  • Proven effective for digital products
  • High conversion rates due to perceived opportunity