WGOIR 13 april 2010 eng

GfK Consumer Tracking

What’s going on in Retailing – Laurent de Groof 15 april 2023

What’s

Retailing?!

going on in

Which 50% of your promotions is really

effective?



Conclusions

Promotion objectives differ between manufacturers and retailersBrand versus category and store consequences

Limited number of promotions result in Store Traffic

Promo pression is still growing!Prognosis GfK: 20% in 2015

Promotion results differ per target groupHouseholds go for the 1+1

HH met kinderenHH met kinderen

4

GfK Consumer Tracking What’s going on in Retailing – Laurent de Groof 15 april 2023

Western wind creates more promotion pressure!

34%

USA

30%

UK

19%

SPAIN

15%

NL

17%

Germany

5


Promotion pressure is growing!

6


NB: basis bestedingen (%)

supermarkten

116125 114 130 124 133 132 149 144

Promotion targets differ per retailer; adjust the promotion policy per retailer. Albert Heijn households with children for large shopping trips, C1000 traffic!

Ontwikkeling index

7


Promotion share higher in small shopping trips; especially small shopping trips by households with children.

Huishoudens zonder kinderen / kleine shopping trip Huishoudens zonder kinderen / grote shopping trip

Huishoudens met kinderen / kleine shopping trip Huishoudens met kinderen / grote shopping trip

Basis: bestedingen, 2009

Promotie-aandeel 2009:14.5 (=100)

12.0 (=82)17.7 (=122)

15.7 (=108) 11.7 (=81)



Theory of the ‘Sales Promotion Bump’

Sales Bump (uplift

)

Time (Source:Van Heerde en Neslin, 2008)



Growth effects are positive for retailer and manufacturer. Timing effects only for consumers.

Sales Promotion Bump

(100%)

Growth Effects(33%)

Switch Effects(33%)

Timing Effects(33%)

(Source: Van Heerde en Neslin, 2008)



Not all switch effects show equal results!

Switch Effects

CANNIBALIZATION CATEGORY SWITCH STORE SWITCHBRAND SWITCH

Suppliers’ perspective

Retail perspective

(Source:Van Heerde en Neslin, 2008)



2009 versie opvragen bij EFMI

PROF. LEEFLANG

(RUG)

TOM HEIDMAN(C1000)



Prof. Leeflang: Avoid price promotions!

Avoid price

promotions

Nil effects on long term price promotions

Brand equity does not profit from price promotions



Tom Heidman: Price promotions badly needed!

Price promotions badly needed;

Price promotions have a positive influence on price image;

Price promotions create traffic in stores!



What is meant by traffic?

Category

Traffic

Store

Traffic€ €

16


Meat is the most import category to realize store traffic. However, this does apply to detergents. Yet, promotions on detergents could be of great interest to a retailer.

Store traffic

DetergetnsNational Brand: buy 2 pay 1

BeerNational Brand crate: Front or back page

MeatMinced ground beef: Discont 30%

0%

+ 5,2%

+ 5.7%

+ 3.4%

SoftdrinksNational Brand: Front page

+ 2,6%

Subject weeksSuccessful subject weeks:

Hamsterweken, Toeterweken, Euroweken

17


Most traffic for the category is generated via National Brand and Multibuy promotions!

Category traffic: Detergents promotions

National brand promotions generate significantly more category traffic thanPrivate Label promotions

On average multibuy promotions generate more category traffic thanother promotion types like premium and single price off promotions

... but which type of multibuy promotion should I, being a retailer or manufacturer, bring in to achieve maximal category traffic?

+ 11.2% + 29.5%

+ 36.9%

18


Buy 2, pay 1 promotions generate traffic for most categories. X for Y promotions are the least successful for multibuy promotions.

Category traffic: Detergents multibuy promotions: + 36.9%

X for Y promotion: e.g. 2 pieces for 5.99 + 29.9% (index 81)*

2e half price + 58.2% (index 158)

Buy 3, pay 3 + 48.5% (index 132)

Buy 2, pay 1 + 69.1% (index 187)

* Index 81: 29.9% (x for y) divided by 36.9% (overall multibuy)

19


20


Category traffic: Detergents multibuy promotionsIndex per type of promotion: households with children vs overall

Households with children prefer 1 + 1 promotions

2e half price

HH with children

1+1

3 =2



Conclusions

Promotion objectives differ between manufacturers and retailersBrand versus category and store effects

Limited number of promotions result in Store TrafficNational Brand: Frontpage

Promopressure is still growing!Prognosis GfK: 20% in 2015

Promotion results differ per target groupHouseholds go for the 1+1

HH met kinderenHH met kinderen



Take aways

Understand the effect of your own promotions



Take aways

Formulate the goals for your promotion policy together with your retailer



Take aways

Evaluate and show the expected effects once a year



ABSLaurent de Groof

Managing Consultant ABSTel: +31-(0)162-384 363

E-mail: [email protected]



ABS proven to be

effective

ABS

Promotion Management

Media Management

Price Management

Target-Group Management

WGOIR 13 april 2010 eng

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