LIVRE BLANC | 2021 | FMCG | LA GESTION DES RECETTES
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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
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