Scarcity Strategy

Marketing strategies based on scarcity seek to generate demand, spur short term sales and increase positive perception of the brand by limiting the availability of their product(s.) Sample scarcity strategies: 

Limited supply of new product is offered to boost short-term demand they hope will translate into increased market share by making customers more aware of their other products, e.g. Pepsi Ice Cucumber gentei soda in Japanese market (Limited edition in Japan referred to as gentei.) Familiar strategy for collectibles manufacturers, limited edition prints, etc.

Product is offered for a limited amount of time, e.g., the “fourth flavor” promos offered by many quick serve and fast casual restaurants to boost sales, e.g., McDonald’s McRib, and build perception of variety. 

Product supply limited to increase the perceived value of the product and the brand. Also may limit advertising to less mainstream media. Example: At one time Toyota Scion reportedly limited the number of cars it put into the marketplace and favored less mainstream advertising sources, such as SecondLife.com versus MySpace, to keep the brand special.

Benefits:

Ability to manage brand image for popular product
Limited manufacturing capacity, inventory
Short-term sales boost that may also provide brand converts
Perception of variety 

Also referred to as Fad Marketing, Limited Edition Marketing

Sources: 

http://www.businessweek.com/magazine/content/07_32/b4045055.htm?campaign_id=rss_innovate

http://www.brandsizzle.com/blog/2006/11/brands_scions_s.html 

Photo: http://www.akihabaranews.com/en/news_details.php?id=14109

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