Category Management — Promotion and In-Store Media

Retail formats like department stores, hypermarkets, and supermarkets present unparalleled opportunity to influence shoppers at point-of-purchase through consumer promotions, in-store media, and in-store events such as product launches.

Promotional activities include price-offs, banded packs, collectibles, in-store sampling, special displays, cooperative advertising, and loyalty programmes. They are often supported using in-store media on shelves (shelf talkers or shelf stoppers), floors, carts, chillers, as well as walls and ceiling.

In-store presence of digital, including signage and touch screen kiosks, has grown. We are also witnessing growth in the use of mobile devices to engage with shoppers at point-of-purchase, offering them the means to research products, compare prices and seek promotions.

Promotions and in-store media are key drivers of store choice as well as brand choice. They not only attract and retain store shoppers but also attract new/lapsed brand buyers and retain and reward existing brand consumers.

Retailers need to align their promotion plans with category roles and category strategies. Naturally, priority goes to strategically important products such as traffic builders in destination categories.

The incidence of promotions is also heavily influenced by the support given by manufacturers. With the consolidation of retail and the fragmentation of media, the need for brands to engage with consumers through in-store activities and in-store media at major retail chains has become increasingly important. These efforts aim to raise awareness, shape brand perceptions, attract new or lapsed consumers, and maintain loyalty by rewarding existing consumers.

Since on-promotion sales account for a big proportion of total sales in consumer markets, it is of high importance to evaluate and optimize them. Promotions evaluation is covered in Chapter Promotion, and details of promotions response modelling are covered in Chapter Marketing mix Modelling.

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