Return of instore promotions

Instore promotions, price promotions, giveaways, free with purchase, buy-one get-one-free, drawing, sampling, tasting, sweepstakes and we could further list the popular types of promotions that so much color and toss up shopping.

Promotions are not profitable

Grocery retail communicated during the pandemic. They mostly drew attention to safe and compliant shopping on billboards, citylights, in- and outdoor and online. Promotional placements were picked up from the sales area to make the 2 shopping cart distances where possible. In many places, the number of buyers was limited and a mandatory traffic flow was also set. Under such circumstances, it was not possible to communicate the message of calling to stores and encouraging shopping. With the easing of restrictions, retail chains have reappeared, now announcing special discounts, mainly percentage discounts.

On the enGage Consultant website, consultant and book writer Mike Anthony encourages brand owners to rethink their previous promotion strategies, consider changed shopping habits and now move toward lucrative promotions.

„We’ve analyzed promotions all over the world and we find that most of them lose money. Not all, but many.” – says the author of “The Shopper Marketing Revolution” book. But promotions are unstoppable. Promotions are driven by two major factors. Firstly, it is probably the easiest way for brands to gain a sales uplift quickly. So brands that have had a tough time in the past few months are likely to be eyeing up any opportunity to pile into a heavy discount promotion. Surely the brands that have done really well during the pandemic will catch up too.

Retailers historically have loved instore promotions. Because they are simple, easy, and usually funded by manufacturers. Retailers are facing a strengthened and increased competition of e-commerce. And they will be looking ahead and realizing that we are entering what is likely to be an extended economic downturn.

More than optimalisation

A crisis-proof, profitable and brand-building promotion strategy can be built and implemented with a shopper-centric approach. In line with the brand and shopper marketing strategy, it is worth looking at post-pandemic consumer and shopping habits, evaluating the changes. Considering the shopper  who is already buying the brand and the potential target groups, the promotional message can be well targeted so that the discounts are not given to the action hunter, brand and store changing audience, but to loyal customers committed to the brand and store. However, this requires a very deep knowledge of the shoppers, as well as how they were affected by the emergency, what and how they changed, what they consider to be added value, what they think about the promotions now and which types they prefer.

Without retailers on board, it will be tough to reach the shoppers, so a retailer-centric approach is needed too. To engage better with retail you need to understand their needs, understand what they are likely to ask for, and be ready with credible alternatives that still support them. That means a strategic customer management is required with re-evaluation of relationships and re-harmonisation of targets.