Price cutting can damage brand image

Cutting prices is and has always been seen as a short-term solution that devalues an established brand and is detrimental to its long-term image and profitability.

A less damaging way to gain the attention of the customer seeking added value is for big brands to run highly creative on-pack promotions in-store, allowing them to push for sales and avoid the risk of getting lost in the crowd.

Brands may think that once the recession is over they will no longer have to cut their prices to generate sales. But consumer behaviour has changed and if brands want to stand out in a crowded supermarket then they must find new ways of catching the eye of the shopper without damaging the credibility and value of the company.

Martin Brinklow Head of sales, Fotorama

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