Government campaign urges brands to cut marketing spend
The taxpayer-funded campaign will encourage brands to divert marketing spend to lower prices, with companies introducing such measures being urged to add the campaign name and logo to their branding.
The government is set to launch a campaign to urge businesses to divert marketing spend to price cuts to help ease the cost of living crisis.
Launched in early July, the taxpayer-funded campaign will seek to “amplify and channel” the efforts of brands seeking to rein in rising costs, encouraging other companies to follow suit, reports the BBC. It is believed that companies that agree to introduce cost-cutting measures will be able to add the campaign name and logo to their branding.
The slogan, which is believed to be still in development, appears likely to promote a message of help in times of need, lowering prices for consumers using money marks “which would otherwise be used for marketing”.
This message joins comments made last week by new cost of living czar, Just Eat co-founder David Buttress, who urged brands to ‘refocus’ their marketing spend in a bid to drive down prices. for consumers.
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Speaking to business leaders Monday night, Buttress cited examples of programs he says are working well, from apps selling discounted food that would otherwise go to waste, to Gregg’s decision to offer a small – free lunch to some schoolchildren.
According to the BBC, Buttress also identified four times of the year when companies could introduce price cuts: summer holidays, back to school, rising inflation in the fall and the Christmas period.
A government source told the BBC that no additional funding will be provided to help brands cut prices. The plans have been called a “slap in the face” for SMEs, with the Federation of Small Businesses telling the BBC the notion that struggling businesses can “absorb” the extra costs “is not realistic”.
Today, the BRC NielsenIQ Store Price Index revealed that prices in UK stores hit their highest rate of inflation since 2008, amid rising supply chain costs and contraction in consumer spending.
UK retail prices rose 3.1% from June last year and 2.8% last month. Food inflation jumped to 5.6% in June, with the biggest price increases seen for fresh food – up 6.2% from June last year.
BRC chief executive Helen Dickinson points to the impact of inflation hitting a 40-year high of 9.1% in May, as measured by the consumer price index. She notes that food prices, especially for fresh foods such as cheese, have been affected by “soaring fertilizer and feed costs”.
According to Dickinson, retailers are looking to “absorb these cost pressures as much as possible” and seek efficiencies in their own businesses, with supermarkets expanding value ranges to offer more choice to “bargaining” shoppers and offering discounts to vulnerable customers.
However, Dickinson said if costs continue to soar, it will be up to the government to find ways to help retailers support their customers.