Sir: KPMG’s David McCorquodale is right to warn retailers against being too reliant on price promotions. There is a place for price promotion, and short-term tactical campaigns can drive sales. But too many brands fall into the trap of constantly using discounts, which erode their margin and also perceptions of their brand.
Added-value promotions can often be delivered for a fraction of what the discount would have cost and, unlike discounts, a well thought-out and executed promotion such as a holiday prize or on-pack collector will engage consumers, reinforce brand perception and drive sales.
Simon White, head of business development, Protravel