Marketing without a clear customer strategy isn’t just ineffective, it can be brand damaging.

When The Warehouse recently ran an ad with “Can’t do long division” on a unicorn-themed girls’ bag, it wasn’t just offensive, it was a textbook example of marketing that forgot the customer.

The ASA ruled that the ad reinforced a harmful, outdated stereotype, even if that wasn’t the intention (The Warehouse explained the ad as a joke about a child's age not gender, although have subsequently apologised for it).

The Warehouse 'can't do long division' advertisement missed the basics of customer-led marketing

Missing the basics of customer strategy

The people that designed the ad and approved it, no doubt thought it was funny, and they’re entitled to think so (for the record, I disagree!).  But that’s the issue.  In marketing it’s not what you find funny, or edgy, it’s about designing for your customer, not for yourself.

I’m guessing parents and children are key audiences for The Warehouse, and I don’t know too many parents that would think this ad was funny, or something they want their children to see.

A missed opportunity

While the pink bag has gathered the most attention, the ad campaign is full of tired and patronizing clichés that look down on the very people The Warehouse needs as customers - not a great marketing strategy. The same concept could have easily been used to create a stronger, more engaging campaign celebrating what their customers do.

What's worse is that this campaign was meant to raise awareness of The Warehouse’s very worthy charity initiative, one that donates over NZ$1 million a year to City Missions, Women’s Refuge, and other vital causes.

That uplifting purpose has been completely drowned out. Instead of talking about real impact, we’re discussing a pink backpack and a stereotype many of us hoped we’d moved past.

From ‘Red Shed’ success to modern-day struggle

When The Warehouse started in 1982, it had a clear and compelling position: to make the desirable affordable. Under founder Sir Stephen Tindall, it delivered exactly that, offering a wide product range, at low prices, that genuinely added value for customers. That clarity drove massive growth. By 2000, it had hit $1 billion in sales and was one of New Zealand’s most successful listed companies.

But fast forward to today, and the picture is very different. As retailers like Kmart have entered the market, The Warehouse hasn’t evolved its offer to stand out. The value is no longer obvious, and the proposition feels unclear.  And the results reflect that, with sales in FY24 down 5.3% YOY.  

So when an ad like “Can’t do long division” drops, it’s likely not just a one-off error. It’s a symptom of a bigger problem: unclear positioning, disconnected marketing, and a brand that’s no longer anchored in creating customer value.

Hopefully incoming chief executive Mark Stirton can right the ship and bring The Warehouse back to its former glory days.  A good early sign is his acknowledgement that they “absolutely got this wrong, and we’re sorry”, an improvement on their initial attempts to justify the ad.  He might still need to go and have a word with the web team, because even today, two days after the Advertising Standards Association decision, the ad is still showing on their website.

A trap for businesses of all sizes

This mistake isn’t just for big brands. If you’re handling your own marketing, or in charge of approving marketing, check in regularly:

• Are you posting things you find funny or clever, or things that speak to your ideal customer? (Do you know who your ideal customer is?)

• Is there a way your marketing could be seen as offensive?

• When you look at all of your marketing together, is your message clear, consistent and compelling to your target customer?

• When was the last time you spent time with your target audience, getting to know them, what matters, and make truly sure you’re delivering value to them.

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In short

Marketing without a customer strategy is like driving blind, it may get attention, but it’s risky.  Missing the mark with your core audience, not only results in ineffective marketing, but it can also result in tone-deaf content and damage your reputation.

A strong customer strategy helps you grow, and it stops you being irrelevant, offensive, or worse.