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Promotions: Do you know what you don’t know?



Promotions: Do you know what you don’t know?

2016 has seen big changes in how retailers promote, and subsequently how shoppers buy their groceries. After decades of ever-increasing FMCG promotions, the proportion sold on deal is now falling.

The rise of the discounters with their EDLP strategies has been followed by other retailers moving away from their previous high-low pricing models. Promotional mechanics are changing too, with volume-driving multi-buy deals making way for simpler price cuts.

As the goalposts shift, it is therefore more important than ever to understand how promotions really work and how best to formulate the correct shopper engagement strategy. In developing a well-considered promotional plan, do businesses have all the insights needed? Do they know what they don’t know?

• How expandable is the category, and how well do promotions increase purchasing and consumption?
• What are the parameters required for understanding if EDLP can work?
• How is market share impacted by following the market and cutting promotional levels?
• What level of discount is optimal to grow the brand and the category?

Thoughts On Promotions (Do you know what you don’t know?), a new insight paper, explores this and much more.
You can download the paper by clicking on the button to the right. For access to our full insights library click here.  

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