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Tessa's Take: Price promotion: good or bad?

Tessa Stuart


With food inflation, cutting costs on your food bill is attractive. Innocent customers told me recently that they love buying veg pots on promotion.  

Innocent  announce on their website which supermarket has their products on offer week by week :

Very helpful to consumers.

Innocent see big spikes in sales when they do this, but does this balance out  the margin loss and the impact on quality perceptions of the brand over time?

Or does it condition consumers into waiting for the next price promotion?

Discounting does prompt trial of new brands - it's less risk for the consumer.

But some then become resistant to ever buying the product at  higher price.

More folk buying your product at lower prices on promotion, or fewer folk consistently buying at full price?   Mainstream? Or niche?

Can you engineer volume growth with price promotion, without prejudicing value perceptions of your brand?

You decide.