Promotions are a powerful tool. There are very different ones, and companies continually test them, to find the key that satisfies the desires of their audience and, at the same time, generates greater value, profitability and even reputation.
According to a Nielsen study, direct discounts are the promotional formula most used by food and beverage companies, with 40% of the total. However, this strategy is not always the most appropriate, since it could erode the operating margin and the brand image, in addition to ‘accustoming’ its consumers.
Other popular forms of promotion are the second unit at 70% or 50%, 3×2 or 2×1, options that allow increasing sales and stock rotation, without reducing the unit price. In addition, they tend to have a greater visual and emotional impact, which encourages impulse purchases.
Another alternative is card or redeemable points. These promotions increase customer loyalty and satisfaction by offering them differential rewards. The Carrefour Spain club (6m members) or the Travel Club card (Air Miles España, S.A.), which earns points for purchases from associated brands, are two good examples.
In the FMCG sector, it is also possible to carry out cross promotions: those in which a royalty is offered when purchasing two or more related products (from the same brand or another).
A success story was Sprite + Spotify, offering QR codes on their soda cans that gave access to an exclusive playlist and prize drawings. This promotion sought to connect with the young, music-loving public and increase sales of the drink.
On the other hand, there are trial promotions, in which free samples of products (new or improved) are offered, so that consumers can try them at no cost and give favorable opinions.
The business area of Grupo Gallo’s range of fresh products relied on a mobile application to make a series of home deliveries of free samples. With this promotional action, the brand made known the variety and quality of some of its pastas and, thus, encouraged their consumption among new consumers, while improving its reputation.
With this promotional action, the brand made known the variety and quality of some of its pastas and, thus, encouraged their consumption among new consumers, while improving its reputation.
And there is no one better to rely on in this task than a leading market research company for the FMCG sector such as FOCUS Marketing Research South West Europe.
