Marketing promotions in a cost-of-living crisis: Sensitivity is key

In a time when economic pressures are likely to see consumers cutting back discretionary spend, brands will need to be sensitive about promotion while continuing to remain relevant and top of mind.

High inflation racing ahead of wage increases has squeezed incomes for many UK households in 2022. Now, with Russian sanctions compounding soaring energy prices and tax increases soon to roll out in the UK, the cost-of-living crisis is set to further worsen. How, then, should brand owners respond when it comes to brand promotion?

Three key aspects of the cost-of-living crisis have profound implications for marketers.

1. The cost-of-living disparity

Hardship will be unevenly distributed. An inflation rate of 3% to 4% is regarded as the tipping point at which shoppers start saving money,...

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