We have seen the recent press coverage of Premier Foods’ million pound investment in a cross category product branding campaign.
There is an obvious recognition by Premier Foods that deals are needed in the short term to attract customer’s attention; however value building promotions are also needed to ensure the long term health of brands. Value in this sense is not simply the cheapest on shelf, but quality considered worthwhile paying for.
Brands have always been able to play quality as the differentiator over retailers own label, but the gap is closing and in some categories is now negligible in the minds of shoppers. Therefore quality must now encompass a wider range of factors including perception, taste, performance, usage, convenience or meaningful association.
The question remains ‘Will the activity win over price conscious customers?’ If the promotion builds additional recognition and value for some well loved brands then it has a good chance of success.
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Emma Sutcliffe
Golley Slater Retail
Leeds
March 17th, 2010
