IPA condemns supermarket price promotions
The Institute of Practitioners in Advertising has published a report denouncing the price promotions that many large retailers are placing on brands.
The report was published on 4th January, entitled 'Pricing for the upturn. How can brands fight back?' Industry experts have joined forces to condemn inefficent price promotions which are destroying brand loyalty.
Says Hamish Pringle, IPA Director General: “As the Institute of Sales Promotion's research shows, £14.04 billion was wasted on price promotions in 2009 and a staggering 90% of their cost comes from the supply side and not the retailer. So while retailers are winning valuable market share in their war against each other, manufacturers are suffering widespread collateral damage to their brand loyalty and an erosion of brand equity. We are therefore very pleased that in our lobby for fairer play, one of the main aspects of the new Grocery Code will be to scrutinise the level of ordering products at promotional prices.”
The report states that such price promotions rarely attract loyal buyers but simply encourage promiscuous shoppers, and ultimately erode long term brand loyalty.
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