Avoiding the discount spiral of doom: How to maintain brand equity

Nir Wegrzyn

Pricing is a very complex and delicate part of the brand growth equation, especially in an economic downturn. Making the wrong move can damage the revenue or market share.

The cost-of-living crisis is a reality for us all; whether it be manifested in real-term wage stagnation, the price of your morning coffee, or the availability of… butter. Consumers are evolving their behaviours as a result, with a focus on the pennies in their pocket.

Brands are no different. In response to the current cost-of-living zeitgeist, many are adopting a communications or pricing strategy which attempts to demonstrate brand value at the bottom of the funnel – the retail price. There is, however, an inherent tension in brands taking such a short-termist view and shifting their behaviours to mirror that...

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