Promotions for an optimal sales performance

In July 2014-June 2015, from every HUF 100 spent in the 10 highest-turnover grocery categories 45 were used to buy products in promotion. This means that the value of promotional sales reached HUF 340 billion in the 12-month period. Obviously, market players have to make sure that promotions are organised in a manner that they are efficient and easy to monitor. FMCG manufacturers usually spend at least 20 percent of their sales revenue on sales promotions – more than twice as much as on advertising. Still, according to a Nielsen study, last year 59 percent of retail promotions generated loss in the USA, Canada and the five biggest European markets. As for Hungary, more than half of the top 10 household chemical and cosmetic categories’ sales were realised in promotion. The question is: what proportion of these products would have been purchased without any kind of promotion? With the help of Nielsen’s sales data and ScanTrack method this and other important questions can be answered, helping manufacturers to organise promotions with maximal efficiency.