PROMOTIONAL PRICING VS IN-STORE TASTINGS

The first question on many people’s minds may be, why bother?  

  • To stand out on shelf and cut through the clutter (Shoppers are driven by habit and recognition) 
  • To get customers to trial your product (particularly relevant if you have achieved a new listing or got more stores) 
  • Pressure from retailers (to support their promotional calendar) 
  • To get the minimum volume of sales required to keep you on the shelf (new products will generally have 12 weeks to prove themselves) 
  • To make more money (ideally should be a “win win & win” for you, the retailer and the customer) 

Recommendation 
The most effective promotional tool for driving sales and boosting brand awareness is in-store Tastings: 

  • Suppliers can do these themselves or use family members 
  • Connect with the consumer and share your story 
  • Very cost effective 
  • Encourages sampling and trial purchase 
  • Great for consumer research and feedback 

 
Make the most of your time in-store. Post pictures, updates and comments to your social media followers ahead of time and during the tasting. This will help to drive repeat and trail purchases from people who follow you and your brand online. 

Suggestions 

  • Analyse each promotional mechanic carefully to determine the best fit for what you are trying to achieve 
  • Cost each mechanic carefully and negotiate with the retailer in terms of margin support 
  • Be sure to forecast potential volume increases to ensure you can meet the uplift in sales 
  • Keep a promotional tracker measuring volume uplifts, the impact on your margin and the impact on retailer margin. This will build up good historical information and help you make informed promotional decisions going forward 
  • Plan promotions 12 months in advance and ensure a budget is allocated to cover them 
  • Don’t be afraid to decline a promotion if it will cost you too much money! 

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