Sir, Your Trade Promotions Survey clearly indicates that brand managers are all too aware of the balance between protecting share and maintaining profit (9 July).
Growing market share can mean significant margin erosion and lower prices can diminish brand equity. Inevitably, a price discount creates a lift in sales, and when it ends a bounce-back to equilibrium occurs. Every brand participates in such behaviour as an industry norm. But many choose to punctuate price discounting with added value, brand equity work that counteracts any negatives associated with perennial cuts. We have to navigate these dichotomies for our clients through the creation of strategic shopper engagement programmes that alternate between the price discounts and positive brand perception experiences.
These activities are assembled to give the shopper a more immersive brand experience, building the story and giving consumers a sustainable and tangible reason to buy that goes beyond price.
David Atkinson, managing partner, Space