Brands have been caught a “death spiral” as the competition gets more cut-throat and they become more and more dependent on price promotions, claims Method’s UK general manager Tim Smith.
You only have to look at the latest Assosia figures to see what a massive impact this has had on featured space promotions. Activity across the big four retailers and Waitrose surged 34.4% last year [Assosia 52 w/e 31 December 2012], with the 10 most promoted brands (including own label) increasing their share of space - such as gondola ends and pallets - by a whopping 57.3%.
But not everyone has been as gung ho as you might expect. “While P&G’s Fairy is top of promotions by a considerable number, it’s surprising to not see other P&G brands higher up the rankings considering their sponsorship of the Olympics,” says Assosia managing director Kay Staniland.
Given the share P&G has lost to own label and branded rivals Unilever and Reckitt Benckiser in the past year, P&G brand managers may well be rethinking their promotional strategies for the coming 12 months.
Household brands all washed up
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P&G brands taking a back seat in the promo death spiral