Sir: In the fight for customers, price promotions for many brands may seem the easier route, particularly when proven sale increases and coveted in-store positions are the just rewards. However, brands shouldn’t lose sight of their strategic objectives (‘Brands are frittering money on ‘ineffective’ promotions’, 2 June).
What is the brand trying to achieve with the promotion - foster trials, create long-term loyalty, increase brand affinity? What is the current positioning? What are competitors doing? What does the customer actually value? Lose sight of any of these and the promotion is destined to fail.
Of course, price discounts have their place, but the monetary cost to the brand is extremely high in comparison to other promotional mechanics that also deliver incremental sales, but meet key brand or customer-centric objectives at the same time.
Strategic sales promotions should amplify brand cues and differentiate from competitors - both brand and own-label.
Significantly, the perceived added value for the customer needs to outweigh the cost of the promotion to the brand.
Sophie Daranyi, chief executive, Haygarth