The constant evolution of the markets can lead retailers and distributors to adopt short-sighted strategies that erode brand strength. This is dangerous as brand strength is critical to thriving in a difficult market.
Currently, retailers are faced with a cost-of-living crisis that is causing shoppers to look for low-price alternatives. To deal with this challenge, many are pushing down their prices to become the cheapest retailer in their category. As there can only be one winner with the lowest price, this strategy results in low margins that will be difficult to increase at a later point.
Fortunately, embracing a consumer-focused strategy will help retailers drive results both now and in the future. The strategy requires consistently delivering the right message to relevant consumers over the right channels — creating a preference for one retailer when shoppers could easily find the same basket of products elsewhere, even at a lower price.
So, what should retailers do to leverage this strategy and win in a highly competitive market?
