PLANNING 2024 | FMCG | PRICE & PROMOTIONS
The Source of Business® of Promotions:
Balancing the Positive and Negative Impacts of Promotions
Achieving promotion optimisation continues to be an elusive goal, as sales uplifts often obscure losses elsewhere within the category. Revenue management recognizes that a significant portion of incremental sales from promotions does not contribute positively, as it is offset by shoppers downgrading, causing revenue dips in other areas. By systematically assessing factors like cannibalisation, subsidisation, retail switching, and other counterproductive impacts, we can address the core reasons behind promotional inefficiencies.
Benchmark data from Accuris reveals the breadth of this issue (see below). The white paper, for download below, delves into the reasons behind poor promotional performance and offers strategies to significantly improve performance.
Percentage of promotional uplift offset by sales declines elsewhere in a supplier’s own product portfolio
Percentage of sales on promotion sold to (loyal) shoppers who would have paid full price
Percentage of sales on promotion not adding incremental revenues to the category
Source: Accuris UK Benchmark Study, 2022
Averages based on 17 categories, top 4 grocery multiples retailers
Continue to read:
Revenue Management solutions for consumer goods leaders.
From data integration to modelling, from monthly performance tracking to benchmarking and workshops: with Accuris you reduce the time your team spends on data and reporting so they can focus on planning, optimisation and revenue growth.
Click to enlarge