A brand strategy driven purely by price indicates a short-term mentality that is frequently shaped by shallow customer insight.
When competing purely on price no one tends to win. It’s a race to the bottom of the barrel. Just look at the European supermarket space. They’ve tried to compete on price. The result? Shattered brand trust courtesy of horse meat in our lasagne. Bad times. Even strategies built around scale have failed when price is the primary competitive lever.. Tesco provides an example. It’s true Aldi are predominantly price driven and have performed very well but even they are looking to weave more value into their offer via their Exquisite Collection. Price-driven brands appreciate this strategy can only take them so far.
So why compete on value for money? Value offers infinite opportunities for differentiation and you can identify these opportunities will be revealed via deep customer profiling.
If you compete purely on price what are your options? Just to get cheaper. Horse meat lasagne anyone?
Also published on Medium.