Retailers and manufacturers adore BOGOFs (buy one get one free) but these special offers damage brand equity and overall brand value, according to The Oxford Research Agency.
Defra is looking to ban BOGOFs, as research shows they are the main contributor to 30% of all food being thrown away. As a result, the agency believes that this is a good time for brands to find other promotional mechanics that deliver ’brand health’ and consumer rewards.
Bombarding consumers with a BOGOF offer on a product for a short-term ’blitz’, to raise awareness and boost sales, damages brand equity, it says, while the strongest brands are nurtured and grown over time, with longer-term promotions on areas such as health being used to connect and form a relationship with consumers. The agency advises that companies should also focus on quality, as higher-quality brands have been proven to achieve a larger market share and better profitability compared to inferior competitor products.
Ensuring your brand has a clear and unique position in the market is also vital it says, whether this is achieved through the brand name, packaging, quality, image or service standards.