Promotions are a significant investment for brands and retailers but, how much of this investment generates incremental volume growth?
This and other relevant topics drive our latest thought leadership release Generating incremental growth through promotions.
Across the markets analysed for this study we found that more than one dollar in every five spent on FMCG was through promotions and in the Modern Trade of Urban 4 Key cities Vietnam it is not far from that global average. However, while promotions may help brands grow to attract new shoppers – as well as encourage their return – there is no long-term impact on penetration.
Through our panels, we can see the level of promotions in each of our studied markets, as well as the uplift these promotions have provided. Success, whether for brands or retailers, can only come when promotions manage to encourage additional purchasing at a category level that would not otherwise have happened. We call this “incremental growth”—it’s the most effective measure by which to analyse promotion performance.
In this new report we pinpoint the five principles to consider as retailers and manufacturers look to use promotions to achieve incremental growth.