Pricing, Promotion & Brand Loyalty - Highlights | Forum Seminar




London, 26 February 2010 – Members of Allegra’s Food Strategy Forum met at Home House in central London for a seminar on Pricing & Promotions. It was a highly productive morning, with lively debate and discussion.

Colin Harper, Research Director from the Institute of Sales Promotion, kicked off with a seminar on what the foodservice industry can learn from the grocery sector. He cautioned the food and beverage sector against indiscriminate use of promotions to drive sales volume. He said businesses sales strategies should focus on brand equity and profitability rather than just on volume of sales.

Simon Stenning, Allegra Strategies Foodservice Strategy Director, picked up on this theme and showed how carefully managed promotional activity – such as the Marks and Spencer’s £2 meal deal which ran for a fixed period in 2009, when the recession was at its worst. The promotion showed how the retailer was aware that its customers were facing a tough time, but because it only ran for a limited period it didn’t devalue the brand but instead created a halo effect. The message was clear consumers could still get excellent quality M&S food, but its offer had been tailored to meet consumers more restricted budgets. The legacy of this strategy was that existing customers were retained rather than lured off to competitors offering cheaper prices.

This example highlighted a major trend identified by Allegra Strategies in its recently published Top of Mind survey. Low prices do not automatically translate into customer loyalty, consumers are becoming increasingly demanding.

To succeed in this intensely competitive market Allegra Business Analyst, Emily Stella said brands must excite consumers and engage with them by delivering value, consistent product quality and choice and truly excellent service.

For further information on this event or to find out more about The Allegra Food Strategy Forum please call Yvette Mackenzie on 020 7691 8842 or email yvmackenzie@allegra.co.uk