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.
