Some rather interesting new research from the ISP carries some stark warnings about the dangers of too many price promotions. Their recently-appointed head of insight, Colin Harper, has just published a report in which he demonstrates quite clearly that too many short-term price promotions can damage brands.
His work shows that branded goods manufacturers spent £25.6 billion in 2008 on promotions in UK retailers: more than half of that went on price promotions. Yet the study - The UK Promotion Tracker: Mortgaging the Future in 2009? - finds that far from adding to profits, much of this promotional spend is at best wasted; at worst, an over-reliance on pure price promotions is hugely damaging to long-term brand values. The ISP are strongly recommending that price promotions should only be used when appropriate, and that marketers should, wherever possible, use other promotional techniques which actually build brand values.
Unmissable wholeheartedly endorses the ISP’s views on this, well we would wouldn’t we. And it goes without saying we’d be delighted to show you plenty of examples of just how to do that with our Inspiration bank of prizes which suit a vast array of budgets and themes.