In price-sensitive markets, FMCG and retail marketing often resort to short-term, volume-driving strategies. These marketing tactics can help regain lost share, recruit new customers, clear stocks, and generally stimulate purchase. But price-off initiatives have long-term consequences. FMCG marketers are seeing eroding margins and weakening brand affinity in markets like South Africa, where disposable incomes are shrinking and consumer decisions are increasingly cost-driven.
Some brands are finding ways to build consumer-brand relationships instead of relying solely on quick-hit pricing tactics. Learn more about brand-building strategies that work in a price-sensitive market like South Africa.
Take a deep dive into the consumer landscape of South Africa to see how market forces are driving companies into reactive, mark-down strategies just to stay competitive. Then see how some brands are responding with re-energizing branding initiatives.