With on-going changes to the way in which retailers promote in-store, having to ensure that pricing is clear and transparent to shoppers, there has been a significant reduction in the number of promotions implemented across the UK retail market.
In fact, IRI estimate that UK shoppers will receive £3.7 billion less in promotional savings in 2017, with the number of promotions being at their lowest level in 10 years.
With fewer promotional slots being available to brands, it’s critical that activity is executed from day 1 of the promotional start date, and availability of the promotional range and visibility of the offer is maintained throughout the promotional window.
Tim Eales, Strategic Insight Director for IRI, states “Retailers and suppliers should focus on analysing the impact of their promotional activity across all categories to help deliver real value and drive potential growth.”
Investment in promotional space to secure prominent locations in-store, plus the associated costs of POS and display materials, are significant costs to a brand when on promotion. This coupled with the funding required to support a promotional offer, means that uplifts in volumes to justify the promotional activity have to be significant.
Maximising the return on investment on fewer promotions has never been so critical to brands.
For example, the difference between day 1 and day 3 implementation of a promotional FSDU, can result in a promotion turning a profit or making a significant loss.
With day 1 set up of promotions typically being around 50% in supermarkets, this presents a huge opportunity for brands to drive better ROI through ensuring their agreed activity is implemented correctly, across all stores for the duration of the promotion.
What is encouraging for brands, is that as a consequence of reduced promotional activity, the impact and effectiveness of promotions has actually seen an increase, with better ‘cut-through’ and less promotional ‘noise’.
There has never been a more critical time for brands to take advantage of this trend, to ensure that their promotional activity delivers!
With a team of experts from design and print, to logistics, fulfilment and merchandising, we have the team, skills and knowledge to ensure your promotion lands in-store on time to maximise sales opportunity.
Get in touch to find out how we can support your brand’s promotions in-store: www.deeset.co.uk