Strategies to combat price discounting

Too many brands are trying to combat the recession with excessive price promotion, which will do long-term harm to many categories, leading to commoditisation and erosion of brand loyalty.

Strategies to combat price discounting

Peter Field

The UK (and probably much of the developed world) is in the grip of an epidemic at the moment.

It is a very destructive one – brands everywhere are self-harming with excessive price promotion. It is as if they need to punish themselves for some deepseated shame at trying to make a profit during a recession. So they seize upon what is probably the best way to destroy shareholder value and thrash out another price promotion.

Perhaps they are hoping investors will not notice that large chunks of the marketing budget have been...

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