Are you repeating the same promotions year after year? And, worse, feeling like you have no other choice?
The funny thing about promotions is that they become addicting – the buyer is counting on you to increase your year over year comps. That means you have to run a promo again at the same basic time as last year.
Worse, the retailer may put constraints on what you can and can’t do. For example, they may require that all promoted products be the same as those you have on the shelf.
That way if a promotion doesn’t sell through, they can just move it back on to the shelf. Good for them but limiting for you.
Your competition is counting on you to maintain the same promos on the same predictable schedule
While the retailer may benefit from the lift of your promotions, we’re betting that your promotional lift decreases every time you repeat the promotion.
Part of the problem is that the promo is getting stale in the minds of the shoppers. But another reason may be that your competition has gone to school on your unchanging marketing plans.
Which begs the question, have you checked up on how and when the competition is promoting their products? You may find that they are either piggy-backing or even preceding your promotions with one of their own. Or worse, undercutting your promo pricing and setting you up for a pricing war – a lose-lose situation.
Is your buyer asking you for promotional creativity?
Try approaching your promotions with an open mind. Think of these buckets as thought-starters.
- Off-the-shelf promos – these are general price off
- In-pack promotions – a small premium offered free with purchase
- On-pack promotions – a coupon on the outside of the box
- Rebates – a discount offered after purchase
By being creative in your approach to driving both sales and excitement in the category, your merchant will reward you for your thinking and efforts.
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