Long term Brand Development vs. Short term Business Targets: An analysis of 10 years of Price Promotions in the Brand Food Product Sector

Damian Gallagher, Audrey Gilmore

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Although the importance of taking a long-term perspective in the development of brands is well recognised, short-term price promotion is increasingly used for manufacturer-branded products within the food industry. There has been limited discussion in the literature regarding the long-term consequences and value of price promotion for food brands and food manufacturers. This paper presents the findings from a study of one of Europe's largest food brand manufacturers in the convenience food sector. The research was carried out in two stages. Stage 1 investigated the level and use of price promotions of a leading product brand over a 10-year period from 2000 to 2009. Stage 2 involved in-depth interviews with the key managers involved in the development, marketing and branding of this food brand to ascertain their perceptions and opinions in relation to the findings from Stage 1. The findings illustrate that over half of the sales growth in the period under study came from additional price-promotional activity. Prior to the study the managers appeared to be unaware of the overall impact on the core rate of sale during the 10-year period. Key implications in relation to balancing long-term brand objectives and short-term organisational objectives are discussed.
LanguageEnglish
Pages609-624
JournalJournal of Strategic Marketing
Volume20
Issue number7
DOIs
Publication statusPublished - Oct 2012

Fingerprint

Price promotions
Food products
Food
Managers
Branding
Sales growth
Marketing
Convenience food
Food industry
Food sector
In-depth interviews

Keywords

  • food marketing
  • food brands
  • price promotions
  • mixed methods

Cite this

@article{6800ad0bd0824eba8bb95bb33810e453,
title = "Long term Brand Development vs. Short term Business Targets: An analysis of 10 years of Price Promotions in the Brand Food Product Sector",
abstract = "Although the importance of taking a long-term perspective in the development of brands is well recognised, short-term price promotion is increasingly used for manufacturer-branded products within the food industry. There has been limited discussion in the literature regarding the long-term consequences and value of price promotion for food brands and food manufacturers. This paper presents the findings from a study of one of Europe's largest food brand manufacturers in the convenience food sector. The research was carried out in two stages. Stage 1 investigated the level and use of price promotions of a leading product brand over a 10-year period from 2000 to 2009. Stage 2 involved in-depth interviews with the key managers involved in the development, marketing and branding of this food brand to ascertain their perceptions and opinions in relation to the findings from Stage 1. The findings illustrate that over half of the sales growth in the period under study came from additional price-promotional activity. Prior to the study the managers appeared to be unaware of the overall impact on the core rate of sale during the 10-year period. Key implications in relation to balancing long-term brand objectives and short-term organisational objectives are discussed.",
keywords = "food marketing, food brands, price promotions, mixed methods",
author = "Damian Gallagher and Audrey Gilmore",
note = "Reference text: 1. Aaker, D.A. 1996. Building strong brands, New York: The Free Press. 2. Abimbola, T. 2009. Brand, organisation identity and reputation: Bold approaches to big challenges [Editorial]. Journal of Brand Management, 16: 219–220. [CrossRef] 3. {\'A}lvarez, B.A. and Casielles, R.V. 2005. Consumer evaluations of sales promotion: The effect on brand choice. European Journal of Marketing, 39: 54–70. [CrossRef] 4. {\'A}lvarez, B.A. and Casielles, R.V. 2008. Effects of price decisions on product categories and brands. Asia Pacific Journal of Marketing and Logistics, 20: 23–43. [CrossRef] 5. Arvidsson, A. 2005. Brands: A critical perspective. Journal of Consumer Culture, 5: 235–258. [CrossRef] 6. Bauer, A., Bloching, B., Howaldt, K. and Mitchell, A. 2006. Moment of truth: Redefining the CEO's brand management agenda, Basingstoke, UK: Palgrave. 7. Belk, R.W. 1988. Possessions and the extended self. Journal of Consumer Research, 15: 139–168. [CrossRef], [Web of Science {\circledR}], [CSA] 8. Blattberg, R.C. and Neslin, S.A. 1989. Sales promotion: The long and the short of it. Marketing Letters, 1: 81–87. [CrossRef] 9. Brady, M., Cronin, J., Fox, G. and Roehm, M. 2008. Strategies to offset performance failures: The role of brand equity. Journal of Retailing, 84: 151–164. [CrossRef], [Web of Science {\circledR}] 10. Brecht, W. (2010). Say goodbye to textbook cases: How successful brands will be built in the future [online]. Available from: http://www.interbrand.com/en/best-global-brands/best-global-brands-2009/Say-Goodbye-to-Textbook-Cases.aspx 11. Bryman, A. 2008. Social research methods, Oxford, UK: Oxford University Press. 12. Bryman, A. and Bell, E. 2007. Business research methods, Oxford, UK: Oxford University Press. 13. Carrigan, M. and De Pelsmacker, P. 2009. Will ethical consumers sustain their values in the global credit crunch?. International Marketing Review, 26: 674–687. [CrossRef], [Web of Science {\circledR}] 14. Carson, D., Gilmore, A., Perry, C. and Gronhaug, K. 2001. Qualitative marketing research, London: SAGE. 15. Christodoulides, G. and de Chernatony, L. 2004. Dimensionalising on- and offline brands’ composite equity. Journal of Product and Brand Management, 13: 168–179. [CrossRef] 16. Clayton, M. and Heo, J. 2011. Effects of promotional-based advertising on brand associations. Journal of Product and Brand Management, 20: 309–315. [CrossRef] 17. Davis, S. 2002. Implementing your BAM strategy: 11 steps to making your brand a more valuable business asset. Journal of Consumer Marketing, 19: 503–513. [CrossRef] 18. Dawes, J. 2004. Assessing the impact of a very successful price promotion on brand, category and competitor sales. Journal of Product & Brand Management, 13: 303–314. [CrossRef] 19. de Chernatony, L., Knox, S. and Chedgey, M. 1992. Branding in a recession. European Journal of Marketing, 26: 5–14. [CrossRef] 20. Doole, I. and Lowe, R. 2008. Strategic marketing decisions in global markets, London: Thomson Learning. 21. El-Amir, A. and Burt, S. 2010. A critical account of branding: Towards a synthesis. Marketing Review, 10: 68–86. [CrossRef] 22. Fanning, J. 1999. Tell me a story: The future of branding. Irish Marketing Review, 12: 3–15. 23. Fearne, A., Donaldson, A. and Norminton, P. 1999. The impact of alternative promotion strategies on the spirits category: Evidence from the UK. Journal of Product and Brand Management, 8: 430–442. [CrossRef] 24. Fehle, F., Fournier, S., Madden, T. and Shrider, D. 2008. Brand value and asset pricing. Quarterly Journal of Finance and Accounting, 47: 3–26. 25. Feldwick, P. 1996. Do we really need ‘brand equity’?. Journal of Brand Management, 4: 9–28. 26. French, M. and Dembkowski, S. 2002. When the going gets tough, get your brand going!. Marketing Management, 11: 28–31. 27. Gabay, G., Howard, R.M., Beckley, J. and Ashman, H. 2009. Consumer centered ‘brand value’ of foods: drivers and segmentation. Journal of Product and Brand Management, 18: 4–16. [CrossRef] 28. Hoeffler, S. and Keller, K.L. 2003. The marketing advantages of strong brands. Journal of Brand Management, 10: 421–445. [CrossRef] 29. Horst, S. 1992. Crisis in advertising?. Marketing Research, 4: 39–43. 30. Kapfere, J.N. (2008). The new strategic brand management: Creating and sustaining brand equity long term, London: Kogan Page. 31. Keller, K.L. 1993. Conceptualizing, measuring, managing customer-based brand equity. Journal of Marketing, 57: 1–22. [CrossRef], [Web of Science {\circledR}] 32. Keller, K.L., Ap{\'e}ria, T. and Georgson, M. 2008. Strategic brand management: A European perspective, Harlow, UK: Financial Times Prentice Hall. 33. Keller, K. and Lehmann, D. 2009. Assessing long-term brand potential. Journal of Brand Management, 17: 6–17. [CrossRef] 34. Keller, K.L. and Lehmann, D.R. 2006. Brands and branding: Research findings and future priorities. Marketing Science, 25: 740–759. [CrossRef], [Web of Science {\circledR}] 35. Kendrick, A. 1998. Promotional products vs price promotion in fostering customer loyalty: A report of two controlled field experiments. Journal of Services Marketing, 12: 312–322. [CrossRef] 36. Kitchen, T. 2003. “Brand sustainability: It's about life… or death”. In Beyond branding: How the new values of transparency and integrity are changing the world of brands, Edited by: Ind, N. 69–86. London: Kogan Page. 37. Kotler, P. 2005. “Foreword”. In Brand sense: How to build powerful brands through touch, taste, smell, sight and sound, Edited by: Lindstrom, M. xi–xii. Kogan: London. 38. Lal, R. 1990. Manufacturer trade deals and retail price promotions. Journal of Marketing Research, 27: 428–444. [CrossRef], [Web of Science {\circledR}] 39. Lassar, W., Mittal, B. and Sharma, A. 1995. Measuring customer-based brand equity. Journal of Consumer Marketing, 12: 11–19. [CrossRef] 40. Lawer, C. and Knox, S. 2006. Customer advocacy and brand development. Journal of Product and Brand Management, 15: 121–129. [CrossRef] 41. Lemon, K.N. and Nowlis, S.M. 2002. Developing synergies between promotions and brands in different price-quality tiers. Journal of Marketing Research, 39: 171–185. [CrossRef], [Web of Science {\circledR}] 42. Levy, W.K. 1989. The end of an era: A time for retail Perestroika. Journal of Retailing, 65: 389–395. [Web of Science {\circledR}] 43. Liao, S. 2006. The effects of nonmonetary sales promotions on consumer preferences: The contingent role of product category. Journal of American Academy of Business, Cambridge, 8: 196–203. 44. Lindstrom, M. 2005. Brand sense: How to build powerful brands through touch, taste, smell, sight and sound, London: Kogan Page. 45. Malhotra, N. and Birks, D. 2007. Marketing research: An applied approach, London: Financial Times Prentice Hall. [CrossRef] 46. Manoher, U.K. and Chi, K.Y. 1992. Consumer price and promotion expectations: An experimental study. Journal of Marketing Research, 29: 90–100. [CrossRef], [Web of Science {\circledR}] 47. Mela, C., Gupta, S. and Lehmann, D. 1997. The long-term impact of promotion and advertising on consumer brand choice. Journal of Marketing Research, 34: 248–261. [CrossRef], [Web of Science {\circledR}] 48. Pauwels, K. 2007. How retailer and competitor decisions drive the long-term effectiveness of manufacturer promotions for fast-moving consumer goods. Journal of Retailing, 83: 297–308. [CrossRef], [Web of Science {\circledR}] 49. Pauwels, K., Hanssens, D.M. and Siddarth, S. 2002. The long-term effects of price promotions on category incidence, brand choice, and purchase quantity. Journal of Marketing Research, 39: 421–439. [CrossRef], [Web of Science {\circledR}] 50. Raggio, R. and Leone, R. 2009. Chasing brand value: Fully leveraging brand equity to maximise brand value. Journal of Brand Management, 16: 248–263. [CrossRef] 51. Raghubir, P. and Corfman, K. 1999. When do price promotions affect pre-trial brand evaluations?. Journal of Marketing Research, 36: 211–222. [CrossRef], [Web of Science {\circledR}] 52. Raju, J.S. 1992. The effect of price promotions on variability in product category sales. Marketing Science, 11: 207–220. [CrossRef], [Web of Science {\circledR}] 53. Ranchhod, A. and Gurau, C. 2007. Marketing strategies: A contemporary approach, 2nd ed., Harlow, UK: Pearson Education. 54. Rizvi, S.N.Z., Malik, S. and Zaidi, S.F.B. 2012. Short term and long term impact of sales promotion on organisations profitability: A comparative study between convenience and shopping goods. International Journal of Business and Management, 7: 247–257. 55. Shaw, M.J., Subramaniam, C., Tan, G.W. and Welge, M.E. 2001. Knowledge management and data mining for marketing. Decision Support Systems, 31: 127–137. [CrossRef], [Web of Science {\circledR}] 56. Sim{\~o}es, C. and Dibb, S. 2001. Rethinking the brand concept: New brand orientation. Corporate Communications: An International Journal, 6: 217–224. [CrossRef], [CSA] 57. Slotegraaf, R.J. and Pauwels, K. 2008. The impact of brand equity and innovation on the long-term effectiveness of promotions. Journal of Marketing Research, 45: 293–306. [CrossRef], [Web of Science {\circledR}] 58. Tashakkori, A. and Teddlie, C. 1998. Mixed methodology: Combining qualitative and quantitative approaches, Applied Social Research Methods Series Vol. 46, London: SAGE. 59. Tong, X. and Hawley, J.M. 2009. Measuring customer-based brand equity: Empirical evidence from the sportswear market in China. Journal of Product and Brand Management, 18: 262–271. [CrossRef] 60. Uggla, H. and Filipsson, D. 2009. Business and brand strategy: A framework for integration. Journal of Business Strategy, 6: 27–42. 61. Urde, M. 1994. Brand orientation: A strategy for survival. Journal of Consumer Marketing, 11: 18–32. [CrossRef] 62. Verma, H. 2007. Branding: Context, content and consequences. Journal of Management Research, 7: 27–39. 63. Villarejo-Ramos, A.F. and S{\'a}nchez-Franco, M.J. 2005. The impact of marketing communication and price promotion on brand equity. Journal of Brand Management, 12: 431–444. [CrossRef] 64. Wang, H., Wei, Y. and Yu, C. 2008. Global brand equity model: Combining customer-based with product–market outcome approaches. Journal of Product and Brand Management, 17: 305–316. [CrossRef] 65. Wong, H.Y. and Merrilees, B. 2008. The performance benefits of being brand-orientated. Journal of Product and Brand Management, 17: 372–383. [CrossRef] 66. Wood, L. 2000. Brands and brand equity: Definition and management. Management Decision, 38: 662–669. [CrossRef] 67. Yeung, M. and Ramasamy, B. 2008. Brand value and firm performance nexus: Further empirical evidence. Journal of Brand Management, 15: 322–335. [CrossRef]",
year = "2012",
month = "10",
doi = "10.1080/0965254X.2012.717540",
language = "English",
volume = "20",
pages = "609--624",
journal = "Journal of Strategic Marketing",
issn = "0965-254X",
number = "7",

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TY - JOUR

T1 - Long term Brand Development vs. Short term Business Targets: An analysis of 10 years of Price Promotions in the Brand Food Product Sector

AU - Gallagher, Damian

AU - Gilmore, Audrey

N1 - Reference text: 1. Aaker, D.A. 1996. Building strong brands, New York: The Free Press. 2. Abimbola, T. 2009. Brand, organisation identity and reputation: Bold approaches to big challenges [Editorial]. Journal of Brand Management, 16: 219–220. [CrossRef] 3. Álvarez, B.A. and Casielles, R.V. 2005. Consumer evaluations of sales promotion: The effect on brand choice. European Journal of Marketing, 39: 54–70. [CrossRef] 4. Álvarez, B.A. and Casielles, R.V. 2008. Effects of price decisions on product categories and brands. Asia Pacific Journal of Marketing and Logistics, 20: 23–43. [CrossRef] 5. Arvidsson, A. 2005. Brands: A critical perspective. Journal of Consumer Culture, 5: 235–258. [CrossRef] 6. Bauer, A., Bloching, B., Howaldt, K. and Mitchell, A. 2006. Moment of truth: Redefining the CEO's brand management agenda, Basingstoke, UK: Palgrave. 7. Belk, R.W. 1988. Possessions and the extended self. Journal of Consumer Research, 15: 139–168. [CrossRef], [Web of Science ®], [CSA] 8. Blattberg, R.C. and Neslin, S.A. 1989. Sales promotion: The long and the short of it. Marketing Letters, 1: 81–87. [CrossRef] 9. Brady, M., Cronin, J., Fox, G. and Roehm, M. 2008. Strategies to offset performance failures: The role of brand equity. Journal of Retailing, 84: 151–164. [CrossRef], [Web of Science ®] 10. Brecht, W. (2010). Say goodbye to textbook cases: How successful brands will be built in the future [online]. Available from: http://www.interbrand.com/en/best-global-brands/best-global-brands-2009/Say-Goodbye-to-Textbook-Cases.aspx 11. Bryman, A. 2008. Social research methods, Oxford, UK: Oxford University Press. 12. Bryman, A. and Bell, E. 2007. Business research methods, Oxford, UK: Oxford University Press. 13. Carrigan, M. and De Pelsmacker, P. 2009. Will ethical consumers sustain their values in the global credit crunch?. International Marketing Review, 26: 674–687. [CrossRef], [Web of Science ®] 14. Carson, D., Gilmore, A., Perry, C. and Gronhaug, K. 2001. Qualitative marketing research, London: SAGE. 15. Christodoulides, G. and de Chernatony, L. 2004. Dimensionalising on- and offline brands’ composite equity. Journal of Product and Brand Management, 13: 168–179. [CrossRef] 16. Clayton, M. and Heo, J. 2011. Effects of promotional-based advertising on brand associations. Journal of Product and Brand Management, 20: 309–315. [CrossRef] 17. Davis, S. 2002. Implementing your BAM strategy: 11 steps to making your brand a more valuable business asset. Journal of Consumer Marketing, 19: 503–513. [CrossRef] 18. Dawes, J. 2004. Assessing the impact of a very successful price promotion on brand, category and competitor sales. Journal of Product & Brand Management, 13: 303–314. [CrossRef] 19. de Chernatony, L., Knox, S. and Chedgey, M. 1992. Branding in a recession. European Journal of Marketing, 26: 5–14. [CrossRef] 20. Doole, I. and Lowe, R. 2008. Strategic marketing decisions in global markets, London: Thomson Learning. 21. El-Amir, A. and Burt, S. 2010. A critical account of branding: Towards a synthesis. Marketing Review, 10: 68–86. [CrossRef] 22. Fanning, J. 1999. Tell me a story: The future of branding. Irish Marketing Review, 12: 3–15. 23. Fearne, A., Donaldson, A. and Norminton, P. 1999. The impact of alternative promotion strategies on the spirits category: Evidence from the UK. Journal of Product and Brand Management, 8: 430–442. [CrossRef] 24. Fehle, F., Fournier, S., Madden, T. and Shrider, D. 2008. Brand value and asset pricing. Quarterly Journal of Finance and Accounting, 47: 3–26. 25. Feldwick, P. 1996. Do we really need ‘brand equity’?. Journal of Brand Management, 4: 9–28. 26. French, M. and Dembkowski, S. 2002. When the going gets tough, get your brand going!. Marketing Management, 11: 28–31. 27. Gabay, G., Howard, R.M., Beckley, J. and Ashman, H. 2009. Consumer centered ‘brand value’ of foods: drivers and segmentation. Journal of Product and Brand Management, 18: 4–16. [CrossRef] 28. Hoeffler, S. and Keller, K.L. 2003. The marketing advantages of strong brands. Journal of Brand Management, 10: 421–445. [CrossRef] 29. Horst, S. 1992. Crisis in advertising?. Marketing Research, 4: 39–43. 30. Kapfere, J.N. (2008). The new strategic brand management: Creating and sustaining brand equity long term, London: Kogan Page. 31. Keller, K.L. 1993. Conceptualizing, measuring, managing customer-based brand equity. Journal of Marketing, 57: 1–22. [CrossRef], [Web of Science ®] 32. Keller, K.L., Apéria, T. and Georgson, M. 2008. Strategic brand management: A European perspective, Harlow, UK: Financial Times Prentice Hall. 33. Keller, K. and Lehmann, D. 2009. Assessing long-term brand potential. Journal of Brand Management, 17: 6–17. [CrossRef] 34. Keller, K.L. and Lehmann, D.R. 2006. Brands and branding: Research findings and future priorities. Marketing Science, 25: 740–759. [CrossRef], [Web of Science ®] 35. Kendrick, A. 1998. Promotional products vs price promotion in fostering customer loyalty: A report of two controlled field experiments. Journal of Services Marketing, 12: 312–322. [CrossRef] 36. Kitchen, T. 2003. “Brand sustainability: It's about life… or death”. In Beyond branding: How the new values of transparency and integrity are changing the world of brands, Edited by: Ind, N. 69–86. London: Kogan Page. 37. Kotler, P. 2005. “Foreword”. In Brand sense: How to build powerful brands through touch, taste, smell, sight and sound, Edited by: Lindstrom, M. xi–xii. Kogan: London. 38. Lal, R. 1990. Manufacturer trade deals and retail price promotions. Journal of Marketing Research, 27: 428–444. [CrossRef], [Web of Science ®] 39. Lassar, W., Mittal, B. and Sharma, A. 1995. Measuring customer-based brand equity. Journal of Consumer Marketing, 12: 11–19. [CrossRef] 40. Lawer, C. and Knox, S. 2006. Customer advocacy and brand development. Journal of Product and Brand Management, 15: 121–129. [CrossRef] 41. Lemon, K.N. and Nowlis, S.M. 2002. Developing synergies between promotions and brands in different price-quality tiers. Journal of Marketing Research, 39: 171–185. [CrossRef], [Web of Science ®] 42. Levy, W.K. 1989. The end of an era: A time for retail Perestroika. Journal of Retailing, 65: 389–395. [Web of Science ®] 43. Liao, S. 2006. The effects of nonmonetary sales promotions on consumer preferences: The contingent role of product category. Journal of American Academy of Business, Cambridge, 8: 196–203. 44. Lindstrom, M. 2005. Brand sense: How to build powerful brands through touch, taste, smell, sight and sound, London: Kogan Page. 45. Malhotra, N. and Birks, D. 2007. Marketing research: An applied approach, London: Financial Times Prentice Hall. [CrossRef] 46. Manoher, U.K. and Chi, K.Y. 1992. Consumer price and promotion expectations: An experimental study. Journal of Marketing Research, 29: 90–100. [CrossRef], [Web of Science ®] 47. Mela, C., Gupta, S. and Lehmann, D. 1997. The long-term impact of promotion and advertising on consumer brand choice. Journal of Marketing Research, 34: 248–261. [CrossRef], [Web of Science ®] 48. Pauwels, K. 2007. How retailer and competitor decisions drive the long-term effectiveness of manufacturer promotions for fast-moving consumer goods. Journal of Retailing, 83: 297–308. [CrossRef], [Web of Science ®] 49. Pauwels, K., Hanssens, D.M. and Siddarth, S. 2002. The long-term effects of price promotions on category incidence, brand choice, and purchase quantity. Journal of Marketing Research, 39: 421–439. [CrossRef], [Web of Science ®] 50. Raggio, R. and Leone, R. 2009. Chasing brand value: Fully leveraging brand equity to maximise brand value. Journal of Brand Management, 16: 248–263. [CrossRef] 51. Raghubir, P. and Corfman, K. 1999. When do price promotions affect pre-trial brand evaluations?. Journal of Marketing Research, 36: 211–222. [CrossRef], [Web of Science ®] 52. Raju, J.S. 1992. The effect of price promotions on variability in product category sales. Marketing Science, 11: 207–220. [CrossRef], [Web of Science ®] 53. Ranchhod, A. and Gurau, C. 2007. Marketing strategies: A contemporary approach, 2nd ed., Harlow, UK: Pearson Education. 54. Rizvi, S.N.Z., Malik, S. and Zaidi, S.F.B. 2012. Short term and long term impact of sales promotion on organisations profitability: A comparative study between convenience and shopping goods. International Journal of Business and Management, 7: 247–257. 55. Shaw, M.J., Subramaniam, C., Tan, G.W. and Welge, M.E. 2001. Knowledge management and data mining for marketing. Decision Support Systems, 31: 127–137. [CrossRef], [Web of Science ®] 56. Simões, C. and Dibb, S. 2001. Rethinking the brand concept: New brand orientation. Corporate Communications: An International Journal, 6: 217–224. [CrossRef], [CSA] 57. Slotegraaf, R.J. and Pauwels, K. 2008. The impact of brand equity and innovation on the long-term effectiveness of promotions. Journal of Marketing Research, 45: 293–306. [CrossRef], [Web of Science ®] 58. Tashakkori, A. and Teddlie, C. 1998. Mixed methodology: Combining qualitative and quantitative approaches, Applied Social Research Methods Series Vol. 46, London: SAGE. 59. Tong, X. and Hawley, J.M. 2009. Measuring customer-based brand equity: Empirical evidence from the sportswear market in China. Journal of Product and Brand Management, 18: 262–271. [CrossRef] 60. Uggla, H. and Filipsson, D. 2009. Business and brand strategy: A framework for integration. Journal of Business Strategy, 6: 27–42. 61. Urde, M. 1994. Brand orientation: A strategy for survival. Journal of Consumer Marketing, 11: 18–32. [CrossRef] 62. Verma, H. 2007. Branding: Context, content and consequences. Journal of Management Research, 7: 27–39. 63. Villarejo-Ramos, A.F. and Sánchez-Franco, M.J. 2005. The impact of marketing communication and price promotion on brand equity. Journal of Brand Management, 12: 431–444. [CrossRef] 64. Wang, H., Wei, Y. and Yu, C. 2008. Global brand equity model: Combining customer-based with product–market outcome approaches. Journal of Product and Brand Management, 17: 305–316. [CrossRef] 65. Wong, H.Y. and Merrilees, B. 2008. The performance benefits of being brand-orientated. Journal of Product and Brand Management, 17: 372–383. [CrossRef] 66. Wood, L. 2000. Brands and brand equity: Definition and management. Management Decision, 38: 662–669. [CrossRef] 67. Yeung, M. and Ramasamy, B. 2008. Brand value and firm performance nexus: Further empirical evidence. Journal of Brand Management, 15: 322–335. [CrossRef]

PY - 2012/10

Y1 - 2012/10

N2 - Although the importance of taking a long-term perspective in the development of brands is well recognised, short-term price promotion is increasingly used for manufacturer-branded products within the food industry. There has been limited discussion in the literature regarding the long-term consequences and value of price promotion for food brands and food manufacturers. This paper presents the findings from a study of one of Europe's largest food brand manufacturers in the convenience food sector. The research was carried out in two stages. Stage 1 investigated the level and use of price promotions of a leading product brand over a 10-year period from 2000 to 2009. Stage 2 involved in-depth interviews with the key managers involved in the development, marketing and branding of this food brand to ascertain their perceptions and opinions in relation to the findings from Stage 1. The findings illustrate that over half of the sales growth in the period under study came from additional price-promotional activity. Prior to the study the managers appeared to be unaware of the overall impact on the core rate of sale during the 10-year period. Key implications in relation to balancing long-term brand objectives and short-term organisational objectives are discussed.

AB - Although the importance of taking a long-term perspective in the development of brands is well recognised, short-term price promotion is increasingly used for manufacturer-branded products within the food industry. There has been limited discussion in the literature regarding the long-term consequences and value of price promotion for food brands and food manufacturers. This paper presents the findings from a study of one of Europe's largest food brand manufacturers in the convenience food sector. The research was carried out in two stages. Stage 1 investigated the level and use of price promotions of a leading product brand over a 10-year period from 2000 to 2009. Stage 2 involved in-depth interviews with the key managers involved in the development, marketing and branding of this food brand to ascertain their perceptions and opinions in relation to the findings from Stage 1. The findings illustrate that over half of the sales growth in the period under study came from additional price-promotional activity. Prior to the study the managers appeared to be unaware of the overall impact on the core rate of sale during the 10-year period. Key implications in relation to balancing long-term brand objectives and short-term organisational objectives are discussed.

KW - food marketing

KW - food brands

KW - price promotions

KW - mixed methods

U2 - 10.1080/0965254X.2012.717540

DO - 10.1080/0965254X.2012.717540

M3 - Article

VL - 20

SP - 609

EP - 624

JO - Journal of Strategic Marketing

T2 - Journal of Strategic Marketing

JF - Journal of Strategic Marketing

SN - 0965-254X

IS - 7

ER -