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 (e.g. product launches).
The promotional activities include price-offs, banded packs, collectibles, in-store sampling, special displays, cooperative advertising and loyalty programmes. They are often supported by the use of in-store media on shelves (shelf talkers or shelf stoppers), floors, carts, chillers, as well as walls and ceiling.
Mobile devices are being used at point-of-purchase to research products, compare prices and seek promotions.
These varied in-store activities have acquired far greater significance with the consolidation of retail and the fragmentation of media. In many countries the incidence of shopping at a major chain is often far greater than the incidence of primetime TV viewership. Hence the need to engage with shoppers inside the store has grown in importance.
Promotions and in-store media have important bearing on store choice and brand choice. From the retailer’s viewpoint they are an important means to attract and retain shoppers. For manufacturers they serve to raise awareness, mould brand perceptions and draw new or lapsed consumers as well retain and reward existing consumers.
On-promotion sales account for a big proportion of total sales in FMCG. It is therefore, of high importance to evaluate and optimize them. Promotions evaluation is covered in Chapter Promotion. The chapter also covers details of promotions response modelling.
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The Plannogrammer is an experiential learning facility for category managers, trade marketers, and retailers in consumer markets. Ideally suited for hybrid learning programmes, Plannogrammer imparts hands-on training in the planning and evaluation of promotions and merchandising.
It supports a collection of simulation and analysis platforms such as Promotions and Space Planner for optimizing space and promotions, Plannogram for populating shelves and merchandising, a Due To Analysis dashboard that decomposes brand sales into the factors driving sales, and a Promotion Evaluator to evaluate the volume, value and profit impact of promotion plans.