Discounts can devalue brands in a downturn

That we’re now in the grip of a full-on recession can’t be lost on anyone and the shift in consumer behaviour is the most marked the retail industry has witnessed in many years.

Entrenched consumer habits that have built up over time and become habitual consumer behaviour are now being challenged. Shoppers are switching supermarkets, using different criteria to drive their choice.

For brands and retailers battling it out for a diminishing share of consumer spend, this is an opportunity to challenge consumer loyalty with cleverly targeted promotions. Online printable coupons and vouchers have seen a particular surge in popularity.

The key to sustained success is to think laterally and apply coupons and vouchers creatively. While price sensitivity during a recession isinevitable, marketers must be mindful of the fact that the economy, however dire now, is cyclical and will in time recover. Those who too heavily favour discounting now over more strategic, brand-supporting initiatives may find they have devalued their brand irreparably.