ARE WE REALLY GETTING VALUE FROM OUR PROMOTIONS?
Australian manufacturers and retailers are investing an exceptional amount of time and money executing promotions on a regular basis – with the hope that both parties will benefit from a maximum return on their investment. The reality is, however, that this outcome is rarely ever achieved.
In Australia, $51 billion is spent on promoted sales; however, 48% of this amount would have happened anyway. In other words, there are grocery items that would sell the same amount whether they were promoted or not. As a result, there is an $11.3 billion opportunity (considering the discounted amount) for Australian manufacturers and retailers to drive efficiency in their promotions.
In the past eight years, the percentage of products sold on promotion has increased from 30% to 40%, making Australia one of the most highly promoted countries in the world. This has given rise to Australian shoppers who are highly price aware. Some of these shoppers change their behaviours by picking where to shop, switching between promoted brands in-store and pantry stocking on promoted products. Nielsen – Read more…