Wednesday 21 September 2016

Promotions Failing To Ignite Sales For Retailers - IRI

Given that IRI's research re effectiveness of promotions shows that reality does not match expectation when it comes to sales, this study of over 85,000 promotions in UK supermarkets, convenience stores and health and beauty outlets raises the following issues for NAMs:
  • Where at: Essentially, vital to examine your specific categories/brand performance, but it looks like any gain for retailers is via trade investment rather than margin on incremental sales
  • Where headed: Eventually, more enlightened retailers will realise that specific brands appear to be growing at expense of competitors, thus in breach of basic principles of category optimisation, rather than incrementally growing the category. Short term retailers will simply grab the money
  • How it affects you: Not good for building brand equity
  • Action: Best to revert to fundamentals, assessing each part of the marketing mix and emphase any real advantage vs. alternatives available

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