Grocers are increasingly aware that a strategy built on promotional escalation not only erodes value but also brand equity. Of course brands understand that price promotions have a place in the marketing equation. However although they help shift volume, and deliver footfall, they don't build affinity for either brand or retailer in the long term, nor do they build net additional sales.
Both retailers and brands should remember that someone else can always undercut your prices; by contrast, a relationship with customers, built on relevant dialogue through the right channels, is far less open to sabotage.
Crispin Haywood, shopper marketing planning director, OgilvyAction