This Media Network debate examines the issue of price promotions and discounts and how shoppers' expectations are changing.
Big supermarket chains like Tesco and Morrisons are continuing to lose market share to cheaper competitors like Aldi and Lidl who place an emphasis on simple pricing structure and everyday value. Some say one of the reasons behind this change is the realisation that discounts and offers that don't always demonstrate real value.
Joanna Blythman sums up the feeling shared by consumers when it comes to fake discounts in her piece documenting the pressures facing big supermarket chains:
We are sick of being hoodwinked by the smoke-and-mirrors promotions of the big chains. Consumers correctly suspect that they are being diddled into spending more than they intended and are voting with their feet. This is why Tesco's Big Price Drop was renamed by some the Big Price Drop Flop.
This change doesn't only impact supermarkets. News that high street furniture retailers have been investigated by the Office of Fair Trading for advertising false discounts show that supermarket retailers aren't the only ones facing a consumer backlash.
In order to make sense of this change for media and marketing professionals, this video brings together leading experts in retail and marketing to examine the following questions:
• The January sales may seem a while ago, but where retailers which discounted early generally made lower profits than those that waited, what lessons should retailers take on board and how can marketing help create greater value and profits?
• Is heavy discounting always the best way to boost sales and revenue?
• How can retailers use their brand and employ shopper marketing and other techniques to build excitement around their products to increase value?
• Is discounting, admittedly a powerful marketing tool, a crutch retailers and brands are too eager to lean on? Does discounting devalue a product in the eyes of the consumer? Is it a viable long term strategy?
• Is there a risk of consumers losing their trust in brands if they are not open and transparent in their pricing?
Panelists include:
Chris Smith, content coordinator, The Guardian Media Network (moderator)
Verity Johnson, head of shopper insight and strategy, Saatchi & Saatchi X
Ian Middleton, columnist, Retail Week Magazine
Tony Nunan, managing director, Visuality
Professor Jim Saker, head of the retail and marketing group, The University of Loughborough
Michelle Whelan, managing partner, Arc Worldwide
This content is brought to you by Guardian Labs in association with the Marketing Agencies Association.
