During a short stint in Sales, I was told that Mars never price promoted products that could be stocked or “hamstered”. Not sure whether that’s true or not, especially as promotions are a good way to round off the AIDA process – they stimulate customers to act – but that can also do you damage.
Interestingly, German gardening centres run regular price promotions – across all items except dog and cat food. My suspicion is that pet food companies are behind this (one of whom does belong to Masterfoods).
Let’s run through an example: I go to the supermarket and see pizzas on promotion.
What do I do? Stock up! If everyone does this, the only time pizzas get bought is on promotion. So I agree with Mars on this one – promote tactically, but very carefully. And never in a way that undermines your own business.