Value-added promotions will come to fore in 2012

Mark Ritson is absolutely right when he says that “discounting grows sales, but at the expense of brand equity and customer relationships” (MW last week).

The past 12 months have been characterised by an over-reliance on price promotions and although brands are making noises about trying to stop these and instead focus on value-added promotions, there remains great pressure from the retailers to keep promoting on price.

Despite this, I expect to see a trend towards more value-added promotions in 2012 as brands increasingly recognise that price promotions can ultimately devalue their brand.

Travel and leisure promotions will increase further in popularity as consumers continue to look for ways of maintaining their lifestyle despite the fact that household budgets remain stretched. Consumers will look forward to and enjoy occasions and events which they have won and are likely to feel warm towards the brand behind the promotion as a result.

Graham Howarth
Director, P&MM Sales Promotion

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