Trading brand integrity for short term gain is a rookie mistake.
How did Cancun become a discount destination for Spring Break? In 1988, the average room was around $300 – it was an exclusive, up market resort town. Then hurricane Gilbert came along, trashed the town and tourism dropped off. The following year it was rebuilt but the hotels dropped their price to an average of $50 – just to pick things back up and hit their numbers for that year. Within a few seasons the brand was ruined and it never recovered. This is not unique, it happens every day.
The perception of your brand is the reality of how consumers see your company. It represents your positioning, your value statement and your key differentiators all at once. Do not underestimate its value. And if your slaughtering it with discounts and desperate tactics, you could be tanking the future of your company. Be smart. Build your brand with your marketing efforts, don’t trade its value for short term gains.
Originally written while working at Akavit – used with their permission.