Compete on Value Without Becoming a Discount Brand

Every consumer brand is being pushed to compete on value right now. The brands that win will not be the ones with the lowest prices. They will be the ones that make shoppers feel they are getting more than they pay for, without teaching them to wait for the next deal.

Two stories this week show how this works. On October 14, Wegmans opened its first store in Charlotte, North Carolina. It is a 110,000-square-foot grocer known for its prepared foods and in-store experience, yet it entered the market as the low-price leader. Its mailer claims that the 250 items shoppers buy most often cost 20% more at Harris Teeter and 8% more at Food Lion (Grocery Dive, October 14, 2026). The same day, Applebee’s CMO Michelle Chin described how the chain is trying to stand out in what Marketing Dive called “a value-obsessed industry.” Applebee’s 2 for $25 offer now accounts for more than a quarter of its business (Marketing Dive, October 14, 2026).

Neither is a discount brand. Both are using value as a strategy rather than a reaction. That difference is what most growing food, beverage and consumer brands need to get right over the next year.

Why value is now the main battleground

Shoppers have been paying higher prices for years, and they have changed how they shop. Store brands have taken advantage. Circana reports that U.S. private label sales reached $330 billion, with a 23% dollar share and a 24% unit share of the total market (Circana, March 31, 2026).

The largest brands are responding with price. In February, PepsiCo said it would cut prices on Lay’s, Doritos, Cheetos and Tostitos after years of increases. CEO Ramon Laguarta said, “We have been testing multiple ways to give them affordability” (Associated Press via 13abc, February 3, 2026).

Earlier this year I wrote about the case for going low-cost in an uncertain economy. That argument still holds. But for most $10 million to $200 million brands, matching big competitors and private label on price is not a strategy they can afford. They do not have the scale to win a price war, and every dollar of discount comes straight out of the margin that funds their growth. The better path is to compete on value without becoming a discount brand.

Value is not the same as price

Value is what a shopper believes they get compared with what they pay. Price is only one side of that equation, and it is the side a growing brand controls least.

Deloitte’s research on value-seeking consumers found that between 10% and 40% of how people judge value comes from factors other than price, such as quality, trust and how a brand makes them feel. Brands that consistently deliver more value than their price would suggest have slowly gained share, and the higher-priced brands in that group scored at least 20% higher on capability than lower-priced ones (Deloitte Insights, June 2025).

In other words, a premium price is not a problem if shoppers can see why it is worth it. A low price is not an advantage if it is the only reason to buy.

How a discount brand gets made

Few brands decide to become a discount brand. They drift there one promotion at a time. A retailer asks for a deeper deal. A slow quarter calls for a price-off event. A new competitor triggers a matching offer. Each decision makes sense on its own. Together they train shoppers to buy only on deal.

These are the warning signs I look for when I step into a brand as a fractional CMO:

A rising share of volume sold on promotion, while sales at full price fall.
Promotions planned by the calendar or the retailer, not by what they need to achieve.
Marketing that leads with price, because the brand has stopped giving people any other reason to choose it.
Growth that depends on the next deal, with sales dropping as soon as a promotion ends.

Once a brand is known for its discounts, it is very hard to win back the margin. The goal is to deliver value on purpose, in a way that strengthens the brand rather than wearing it down.

Download the Compete on Value flip-book (PDF)Download

Six ways to compete on value without discounting the brand

1. Win on the items shoppers use to judge you

Shoppers don’t compare every price. They judge a store or a brand by a small number of items they know well. Wegmans understands this. Its “Hot Zone” pricing puts its best values on basics such as chicken breasts, broccoli and pasta sauce, and its price claims focus on the 250 items people buy most. The rest of the store can still deliver on quality and experience.

For a consumer brand, the same idea applies to your portfolio. Identify the one or two products and pack sizes that shoppers use to decide whether you are worth it, and make sure those are priced sharply. Protect margin everywhere else.

2. Build one signature value offer that fits the brand

A random series of discounts says “we’re cheap.” One consistent, recognizable value offer says “we’re a good deal.” Applebee’s 2 for $25 is a clear example. Chin said, “There is something special about 2 for $25 because it goes back to the ethos of our brand.” It is not a temporary price cut. It is part of how the brand is known.

A food or beverage brand can do the same with a family-size format, a variety pack, a bundle or a subscription. The offer should be easy to understand, consistent over time and tied to what the brand stands for.

3. Run a barbell: value at one end, news at the other

Applebee’s CEO John Peyton called the chain’s summer approach “our barbell strategy.” Strong value offers bring people in, while limited-time items and partnerships, like its NFL-tied burger with Marshawn Lynch, give them a reason to talk about the brand and trade up. Value alone gets attention but not affection. News alone gets attention but not trial.

For a consumer brand, this means pairing an accessible entry point with a premium or limited item that shows what the brand can do. One brings in new buyers. The other protects the brand’s position and margin.

4. Use pack-price architecture, not price cuts

Sometimes the best way to lower the price is to change what the shopper buys. A NielsenIQ report found that smaller packs are growing faster than traditional multi-serve packs in soft drinks, cereal and salty snacks, because they reduce the price per trip even when larger packs offer a better price per serving. As NielsenIQ put it, this “challenges the idea that value should be communicated only through larger pack sizes or the lowest unit price” (Grocery Dive, October 8, 2026).

The right pack lineup can give price-sensitive shoppers an affordable way in, give stock-up shoppers a better deal per unit, and keep your everyday price intact.

5. Make the non-price side of value visible

If up to 40% of value comes from things other than price, then that part of the equation deserves at least as much marketing attention as the promotion calendar. Show shoppers the quality of the ingredients, the amount of protein or fiber, the number of servings, the convenience or the reason the product is made the way it is. Say it on the package, where the decision is made.

Shoppers are more willing to pay for what they can see. They resist paying for what they have to take on faith.

6. Treat every promotion as an investment that has to pay back

Promotions are not bad. Untested promotions are. Before running a deal, decide what it is meant to do: bring in new buyers, support a new item, help a retailer win a key week or clear inventory. Then measure whether it did. Look at incremental volume, not total volume, and at what happens to full-price sales afterward.

Most brands find that a few promotions pay back well and many do not. Cutting the bottom group frees up money to invest in the value levers above.

What a fractional CMO does in the first 90 days

When a growing brand brings me in to address value and pricing pressure, the first 90 days usually look like this:

Days 1 to 30: Find out where value is leaking. Review promotion history, share of volume sold on deal, price gaps to key competitors and private label, and how shoppers describe the brand’s value. Identify the items shoppers use to judge the price.

Days 31 to 60: Build the value strategy. Choose the signature value offer, set the pack-price lineup, define the barbell between entry and premium items and decide which promotions to keep, change or stop. Align with sales and operations so the plan works for retailers and for the supply chain.

Days 61 to 90: Launch and measure. Put the new value messaging on pack and in market, run the first planned promotions with clear goals, and set up a simple scorecard: full-price velocity, share of volume on deal, new buyers and margin.

This work sits between marketing, sales, finance and operations. That is why it often goes better with one experienced leader who can see across all of them, rather than a pricing project handed from one department to another.

Frequently asked questions

How can a brand compete on value without lowering prices?

A brand can compete on value by improving what shoppers get for the price, not only by cutting the price. That includes pricing key items sharply while protecting margin on others, offering a consistent signature value offer, using smaller or larger pack sizes to change the price per trip or per serving, and clearly showing quality and benefits on the package.

What is the difference between a value brand and a discount brand?

A value brand gives shoppers more than they expect for what they pay, and is chosen for that reason. A discount brand is chosen mainly because it is cheaper, often because shoppers have learned to wait for deals. Value brands can hold price and margin. Discount brands usually cannot.

How do you know if promotions are hurting your brand?

Warning signs include a rising share of volume sold on promotion, falling full-price sales, sales that drop as soon as a promotion ends, and marketing that leads mainly with price. Measuring incremental volume and full-price velocity after each promotion shows whether it is building the brand or wearing it down.

What is pack-price architecture?

Pack-price architecture is the lineup of pack sizes and price points a brand offers. A good lineup gives price-sensitive shoppers a low price per trip, gives stock-up shoppers a better price per serving and protects the brand’s everyday price. NielsenIQ found that smaller packs are growing faster than multi-serve packs in soft drinks, cereal and salty snacks.

How can a fractional CMO help with pricing and value strategy?

A fractional CMO can review promotion results and price gaps, define the brand’s value position, design a signature value offer and pack lineup, and set up measurement so every promotion has to pay back. Because the work spans marketing, sales, finance and operations, an experienced leader who works across functions can move faster than separate teams.

Value is a strategy, not a price

Shoppers are more careful with their money than they have been in years, and that pressure is not going away soon. Brands that respond only with discounts will give up margin and brand strength they will struggle to win back. Brands that compete on value by choosing their price battles, building a recognizable value offer, using pack-price architecture and showing what makes them worth it will come out of this period stronger.

If your brand is feeling pressure to discount and you want a plan that protects both sales and margin, I would be glad to talk it through. Start the conversation here.

Marc Drucker is a fractional CEO, COO and CMO who helps food, beverage and consumer products companies turn growth into a business that lasts. He is the author of “How Leaders Fuck Up Innovation.” Learn more at marc-drucker.com.

How to Compete on Value Without Becoming a Discount Brand