Kenny’s Cardiology banks on budget gifts with Christmas campaign

Sarah Stowe

Franchise retailer Kenny’s Cardiology has launched its biggest Christmas marketing campaign to attract consumers in the wake of the slowing economy. Selling greeting cards, toys and gifts with a less-expensive price tag the company is optimistic it will enjoy a bumper Christmas sales period on the back of the ‘ItÕs the little things that make Christmas magical’ campaign.

To support the campaign the company is producing 1.4 million catalogues in Australia, 155,000 catalogues in NZ and conducting a mail out to all of its 50,000 club members. KennyÕs Cardiology managing director Anthony Underwood said the company was confident its message would hit the right note with cautious consumers who were concerned about a looming economic downturn.

“In boom times people tend to splash out on the credit card to buy expensive Christmas presents but when times get a bit tougher and people are worried about their investments and their jobs they are more likely to opt for a better value, sentimental gift,” Underwood said. “That is exactly the market segment where KennyÕs Cardiology is the king and we expect to have a lot of customers at Christmas this year who we might not normally see. We have been around since 1986 and if there is one thing we know from previous downturns itÕs that we flourish when the big ticket retailers are struggling.”

To encourage customers to spend at least $20 instore, KennyÕs is running a competition where customers who spend $20 or more will go into a draw to win a family holiday to Disneyland. Most presents in the KennyÕs Christmas catalogue are under $25 including soft toys from $10.95.

KennyÕs Cardiology is owned by franchisor Allied Brands Limited which also owns Baskin Robbins, Awesome Water and Awesome Entertainment with more than 250 stores in Australia and New Zealand. Allied Brands has grown KennyÕs Cardiology store numbers from 32 to more than 50 since it acquired the business in July 2007, including opening its first store in New Zealand in June 2008.

KennyÕs Cardiology plans to open as many as 30 stores in New Zealand within three years and 55 in Australia by the end of 2009.