General recommendations
Key recommendations for promoting soft drinks more effectively and profitably
Brand Makeovers and Limited Editions
Major soft drink brands are using packaging redesigns, limited-edition flavours, and health-focused reformulations to drive sales. For example, Coke's cherry and zero sugar variants have shown growth due to their fresh appeal.
Healthier Alternatives
As consumers become more health-conscious, brands like Coke Zero and Pepsi Max are performing better than their full-sugar counterparts. Emphasising products that are exempt from sugar taxes and aligning with health trends is a profitable approach.
Flavour Innovations
Introducing new and exciting flavours, especially through limited editions, can boost short-term sales and create a buzz around the brand. Pepsi Max Mango and Coke Zero Sugar Cherry have both seen significant growth.
Adapting to Changing Preferences
Shifts towards natural ingredients, away from artificial sweeteners, and towards functional beverages with added benefits like caffeine are notable trends. Brands like Dash Water, which focus on unsweetened, clean label products, are gaining traction
Partnerships
Collaborations with popular food brands (e.g., Coke’s promotions with Domino’s) and leveraging sporting events or festivals (like Coke’s UEFA Euro 2024 partnership) are helping brands target key occasions and increase visibility.
Hard Discounters
The growing role of discounters like Lidl and Aldi means brands need to consider budget-friendly product lines, such as smaller packaging or meal deal formats, to capture value-conscious shoppers.

This report presents key recommendations for Company X in the critical areas of category management, revenue growth management, and trade marketing. Our insights are drawn from two primary sources: custom studies tailored specifically for Company X and the comprehensive Accuris 2024 Benchmark Study. The latter encompasses data from 17 categories across all grocery multiples for Q1-Q2 2024, with equivalised volume weighted based on turnover. By leveraging these in-depth analyses, we aim to provide actionable strategies that can drive growth, optimize category performance, and enhance trade marketing effectiveness in the competitive soft drinks sector.
Category:
Soft Drinks
Revenue Source:
Category Expansion
Category expansion generated with promotions
How to Increase Category Expansion:
Target elastic segments and categories:
Focus on promoting categories that have more potential for growth, as not all categories are expandable. This recommendation suggests that efforts should be focused on segments where consumers are more responsive to promotions, meaning that even a small price reduction or a volume offer can lead to a significant increase in demand. It is important to identify categories with untapped potential or elasticity, where the promotional spend will yield noticeable results. Brands with a strong value proposition that consumers are willing to switch for are ideal candidates for this strategy.
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Brands: Elastic segments typically include fast-moving consumer goods (FMCGs) in growing categories, such as plant-based alternatives, eco-friendly products, or health-conscious offerings.
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Retailers: Larger retailers with extensive product lines can experiment with a variety of elastic categories, often seen in hypermarkets.
Example: Promoting organic snacks in a growing health-conscious segment can lead to significant category expansion as more consumers switch from conventional snacks.
Code: DO-CATE-AC-0001
Boost penetration in low penetration categories:
Implement promotional strategies to attract new buyers in low penetration categories. This recommendation implies focusing on categories where not many consumers are currently engaged but that hold the potential to attract new customers. Targeted promotions in such categories can significantly increase the customer base. The goal is to break through to consumers who might not have considered the category before, by making it more accessible through appealing offers.
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Brands: Challenger or niche brands entering a category where they have minimal presence but a strong value proposition.
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Retailers: This applies particularly well to supermarkets looking to introduce newer categories that customers may not yet be familiar with, such as specialty food sections or organic products.
Example: Introducing a promotion for lactose-free dairy products in supermarkets with a low number of existing customers in this category can help boost penetration.
Code: DO-CATE-AC-0002
Increase purchase volume in high penetration categories:
Use offers like multi-buy or graduated discounts to encourage larger purchases in high penetration categories. The key here is to leverage the already high number of consumers and encourage them to buy more per visit. Volume promotions like "Buy 2 Get 1 Free" can increase the total spend and consumption in well-penetrated categories by incentivising bulk purchases.
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Brands: Leading brands in categories like beverages, personal care, or household goods, where penetration is already high but consumers can still be enticed to buy more.
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Retailers: Supermarkets and hypermarkets where high-frequency purchases are typical.
Example: Offering a multi-buy discount on a leading brand of toilet paper in a supermarket can encourage families to stock up more frequently, thus increasing overall volume.
Code: DO-CATE-AC-0003
Drive traffic to the category:
Use category-wide promotions across all SKUs to attract more attention and footfall. Rather than focusing on a single product or brand, the entire category can be promoted to encourage broader interest and increase overall sales. The aim is to make the category a destination within the store, drawing attention from customers who might not typically shop within that segment.
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Brands: This is particularly beneficial for categories with wide brand competition, such as snacks or beverages.
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Retailers: Hypermarkets and large-format stores where full category displays can be created to highlight the promotional event.
Example: Promoting all chocolate brands during the festive season can drive increased footfall to the confectionery aisle, benefiting the entire category.
Code: DO-CATE-AC-0004
Encourage variety:
Stimulate sales by offering multiple flavours, sizes, or packaging options that target different occasions and consumer needs. The more options provided within a promotion, the more likely consumers are to try different variants or to purchase products for different occasions. This variety stimulates interest and attracts both existing customers and those new to the category.
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Brands: Brands that have a diverse range of flavours or packaging sizes, such as beverage or snack companies.
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Retailers: Supermarkets and hypermarkets with the space to display a range of options.
Example: Offering different flavours of a soft drink as part of a “mix and match” promotion can encourage consumers to try flavours they have not purchased before.
Code: DO-CATE-AC-0005
Choose to promote strong brands:
Strong, leading brands generate more category expansion than promotions for challenger or niche brands. This recommendation focuses on leveraging brand power to drive overall category growth. Promotions on well-known brands with large consumer followings are more likely to lift the entire category, as these brands have broad appeal and can pull in both loyal and new customers.
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Brands: Category leaders and household names with established consumer trust.
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Retailers: Stores of all sizes but particularly those in competitive markets where brand loyalty is key.
Example: Promoting Coca-Cola over a lesser-known brand during a football season tends to result in greater category uplift.
Code: DO-CATE-AC-0006
Promote in stores with large display spaces:
Promotions tend to generate more category expansion when products are displayed prominently in large spaces, typically more available in hypermarkets than supermarkets. The ability to display products in prominent locations and on larger display units increases visibility and consumer interest, leading to more impulse buys and greater category growth.
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Brands: FMCG brands that can benefit from large in-store displays, particularly for high-consumption products like beverages or snacks.
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Retailers: Hypermarkets with the ability to allocate larger spaces for promotions.
Example: Displaying energy drinks on a large end-cap in a hypermarket can drive higher sales than placing the same products on a regular shelf in a smaller supermarket.
Code: DO-CATE-AC-0007
Use volume-plus promotions instead of price-off promotions:
Volume-plus promotions are more effective, especially in high penetration categories, as they drive increased consumption, while price-off promotions only maintain current consumption levels. This recommendation argues that providing more product for a slightly higher price (such as "Buy 2, Get 1 Free") encourages consumers to buy in greater quantities, increasing both sales and consumption over time, rather than simply offering a discount.
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Brands: Well-penetrated FMCG categories where consumers are already purchasing frequently.
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Retailers: Hypermarkets and large supermarkets where volume-plus promotions can be highlighted prominently.
Example: Promoting a family-sized pack of laundry detergent with a "Buy 2, Get 1 Free" offer drives more volume than simply offering a 20% discount on single packs.
Code: DO-CATE-AC-0008
What to Avoid (as it limits category expansion):
Avoid promoting “me-too” brands, niche brands, and private label:
These typically do not contribute significantly to category growth. This recommendation points out that lesser-known or "me-too" brands do not drive category expansion as effectively as established brands. Promotions on such products may only shift volume within the brand or from competitor brands, rather than expanding the category as a whole.
Code: AV-CATE-AC-0009
High penetration and low expandability segments:
Focus less on categories that already have high penetration or minimal room for expansion. It is inefficient to promote in categories where most potential customers are already buying regularly, as these categories have little room to grow further.
Code: AV-CATE-AC-0010
Promotions that do not encourage larger purchases:
Single-unit price discounts do not drive an increase in overall purchase volume. Offering a discount on a single item may encourage one-off purchases, but it will not lead to the kind of bulk purchasing or repeat visits that larger promotions can generate.
Code: AV-CATE-AC-0011
Predictable promotional schedules:
Avoid making promotions too frequent or predictable, as this cultivates loyalty to promotions rather than the brand or category. Customers who can predict when a promotion will occur may hold off on purchases until the next deal, which diminishes the overall impact of the promotion on category growth.
Code: AV-CATE-AC-0012
Revenue Source:
Retail Switching
How to Maximise Retail Switching:
Promote in underperforming retail locations:
Drive sales in stores with lower footfall to switch consumers from competitive retailers. This recommendation suggests that targeting underperforming stores with focused promotions can increase traffic by pulling shoppers away from other retailers. By offering attractive promotions in locations that do not usually see as much footfall, retailers can make their stores more competitive in the local area, capturing customers who would otherwise shop elsewhere.
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Brands: Best suited for brands with wide availability, particularly FMCGs looking to increase retail distribution.
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Retailers: Smaller supermarkets or regional chains where there is direct competition with nearby stores.
Example: Promoting frozen meals in a store that competes with a larger supermarket in the area can entice customers to switch, especially with special discounts or larger display spaces.
Code: DO-RETSW-AC-0001
Offer exclusive in-store promotions:
Create retailer-specific deals that are not available elsewhere, encouraging customers to switch retailers for the best offers. The exclusivity of promotions can create a strong incentive for customers to visit specific stores, particularly if the deals cannot be found in competing retailers. Exclusive in-store offers, such as limited-time discounts or unique bundle deals, can drive customers to switch their shopping habits.
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Brands: Applicable to major brands capable of offering exclusive promotions at partner retailers.
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Retailers: Large national chains or regional stores with significant competition in their vicinity.
Example: Offering a 'two-for-one' deal on personal care items exclusive to Boots can drive shoppers away from competitors like Superdrug.
Code: DO-RETSW-AC-0002
Create loyalty-based promotions:
Reward loyal customers of a specific retailer to prevent them from switching to competitors and to attract shoppers from other retailers. This strategy focuses on both retention and acquisition, as loyal customers are rewarded with benefits such as discounts or points, while non-loyal customers might be tempted to switch retailers if the loyalty incentives are attractive enough.
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Brands: Brands with long-standing loyalty programmes or those looking to build customer retention.
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Retailers: Suitable for larger chains with established loyalty programmes, such as Tesco Clubcard or Nectar at Sainsbury’s.
Example: Tesco offering extra loyalty points on select groceries encourages regular shoppers to continue buying at Tesco instead of switching to ASDA.
Code: DO-RETSW-AC-0003
Utilise store-specific advertising:
Targeted advertising for a retailer’s local area can attract competitive shoppers. By focusing marketing efforts in specific geographical locations, particularly where competition between retailers is high, store-specific ads can attract shoppers from competitors by promoting localised deals and events. This type of promotion works best when tailored to the local needs of the area.
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Brands: Suitable for brands with national coverage but capable of adjusting to regional preferences.
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Retailers: Ideal for stores that operate in competitive urban or suburban markets, where multiple retailers are within close proximity.
Example: Advertising a store's ‘weekend savings event’ on local radio and social media for a Morrisons store located near a Tesco branch can attract Tesco shoppers to Morrisons.
Code: DO-RETSW-AC-0004
Promote in retail stores with large customer bases:
Promotions in major retail outlets tend to generate more retailer switching as they attract shoppers from smaller outlets. The idea is to leverage the wide reach of larger retail stores, which already have significant foot traffic, and create promotions that pull customers away from competitors, particularly from smaller, less competitive stores.
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Brands: Well-known brands with mass appeal that rely on large-scale distribution.
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Retailers: Hypermarkets and large chain stores that serve high volumes of customers, such as Carrefour or Walmart.
Example: A hypermarket running a ‘buy-one-get-one-free’ promotion on snack foods can draw customers from smaller grocery stores in the surrounding area.
Code: DO-RETSW-AC-0005
Revenue Source:
Competitive Brand Switching
How to Maximise Competitive Switching:
Promote your brand in competitor-dominated categories:
Offer superior promotions to attract customers who typically buy competitor brands. By identifying categories where competitors dominate, brands can deploy targeted promotions to win over shoppers who might otherwise be loyal to other brands. The key is to provide a compelling enough offer to make consumers reconsider their usual purchases.
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Brands: Challenger brands looking to disrupt market leaders.
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Retailers: Supermarkets and larger retailers that can give more visibility to promotional brands.
Example: Offering a major discount on a challenger toothpaste brand in a category dominated by Colgate can encourage switching.
Code: DO-COMSW-AC-0006
Introduce new products or flavours that differentiate from competitors:
Encourage trial and switching by offering unique products that your competitors do not have. Introducing new flavours, sizes, or even entirely new products can entice consumers to switch from their regular brands by providing something fresh and different. Differentiation is key in encouraging brand switching.
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Brands: Best for brands with R&D capacity to innovate quickly and introduce new variants or product lines.
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Retailers: Any retailer that offers a wide variety of brands, particularly those with a focus on unique or specialty items.
Example: A soft drink brand introducing a limited-edition tropical flavour that other competing brands do not offer can drive trial and switching.
Code: DO-COMSW-AC-0007
Use competitive advertising campaigns:
Highlight the advantages of your product over competitors in marketing campaigns to drive competitive switching. An effective advertising campaign that directly addresses competitor weaknesses can sway customer opinions and encourage them to switch to your brand. This might involve comparing features, pricing, or quality directly.
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Brands: Strong brands in competitive markets with clear differentiators.
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Retailers: Supermarkets or drugstores that benefit from higher foot traffic and customer engagement with promotions.
Example: A television ad comparing a detergent’s stain-fighting abilities to its leading competitor encourages shoppers to switch to the superior product.
Code: DO-COMSW-AC-0008
Offer aggressive price promotions on leading competitor brands:
Create deals that are directly targeted at competing brands to encourage shoppers to switch. By pricing your product more competitively than the market leader, you can win over customers who are sensitive to price or looking for better value, particularly in categories where price is a key decision factor.
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Brands: Brands in highly competitive categories like personal care, cleaning supplies, or snack foods.
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Retailers: Hypermarkets and large retail chains that have the leverage to support aggressive pricing promotions.
Example: A discount on a shampoo brand targeted at customers who usually buy Dove can drive competitive switching.
Code: DO-COMSW-AC-0009
Bundle products to increase value:
Offer product bundles that competitors cannot match, making switching more attractive. Bundling products creates a perception of higher value, especially if the bundle price is lower than buying the individual products separately. This can make switching to a new brand more compelling for price-conscious consumers.
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Brands: Large FMCG brands that can afford to bundle multiple products for greater value.
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Retailers: Supermarkets, hypermarkets, and online retailers where bundled offers are frequently used to increase basket size.
Example: Offering a shampoo and conditioner bundle for the price of one product can attract consumers who are already purchasing similar products individually from a competitor.
Code: DO-COMSW-AC-0010
Revenue Source:
Cannibalisation
How to Minimise Cannibalisation:
Promote across distinct product lines:
Avoid focusing too much on one product to prevent sales from cannibalising other products within the same brand. This recommendation highlights the need to spread promotions across a range of products rather than focusing exclusively on one product, which might cause customers to switch from one of your own products to another rather than increasing overall sales.
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Brands: FMCG brands with large, diverse product portfolios.
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Retailers: Supermarkets and hypermarkets where a wide range of products are sold.
Example: Promoting both soft drinks and snack foods from the same brand can reduce cannibalisation compared to only promoting soft drinks.
Code: DO-CANIB-AC-0011
Use targeted promotions for different customer segments:
Tailor promotions to different consumer needs and preferences to avoid shifting sales from one product to another within your brand. Customising promotions for specific demographic or behavioural segments ensures that different products appeal to different customers, rather than causing overlap and cannibalisation.
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Brands: Suitable for brands that serve a wide variety of customer segments, such as food and beverage brands.
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Retailers: Hypermarkets and large supermarkets that can cater to distinct customer bases.
Example: Offering a discount on family-sized products for households and smaller pack sizes for individuals ensures both segments are addressed without cannibalising sales.
Code: DO-CANIB-AC-0012
Focus on higher-margin products in promotions:
Ensure promotions prioritise higher-margin items to avoid cannibalising sales of lower-margin products. This strategy helps maximise profitability, as promoting higher-margin products encourages consumers to trade up, while also preventing lower-margin products from being pushed aside.
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Brands: Best suited for brands with tiered product offerings, such as premium, mid-range, and economy lines.
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Retailers: Large supermarkets and hypermarkets where a range of price points is available.
Example: Promoting premium organic cereal while avoiding discounts on lower-cost alternatives within the same brand can
Code: DO-CANIB-AC-0013