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 even 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 and as well as brand choice. They attract and retain store shoppers. And they attract new/lapsed brand consumers as well retain and reward existing 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.

The consolidation of retail and fragmentation of media has heightened the importance to manufacturers, of engaging with consumers at major retail chains through in-store activities and in-store media, to raise awareness, mould brand perceptions, and draw new or lapsed consumers as well retain and reward 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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