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The Evolution of Promotional and Pricing Incentives in Consumer Packaged Goods
Datamonitor, Nov 2010, Pages: 81
This report focuses on how consumers are becoming more value conscious when grocery shopping, and are turning to promotions to save money. It looks at how promotional and pricing incentives can be adapted to further enhance appeal. As consumers become more value conscious they are modifying their shopping habits, and this means that promotional and pricing incentives are more important than ever for retailers in the grocery sector. Retailers need to have a firm understanding of modern day consumer attitudes and behaviors and adjust strategies around this to maximize sales potential.
Scope of this research
- Enhance the effectiveness of promotional and pricing incentives through gaining a better insight into consumer attitudes and behaviors
- Maximize sales potential through encouraging consumers to continue spending in certain product categories and increase expenditure elsewhere
- Develop alternative promotional techniques to engage consumers and raise awareness of new product launches
Research and analysis highlights
- 52% of consumers say they are cutting back spend on groceries deemed non-essential, with attitudes suggesting this has particularly implications for product categories such as processed food and snacking items. However, despite their best intentions, consumers continue to make non-essential, impulse buys if they believe a bargain is to be obtained.
- When determining if a product offers value for money, consumers are more influenced by promotional incentives than the lowest price. While competitive pricing is important, this shows that shoppers are more attracted by incentives on preferred brands than simply opting for the cheapest product, which may compromise levels of enjoyment.
- 41% of global consumers are regularly taking advantage of promotional offers such as BOGOF promotions, with Italian consumers the most likely to be doing so. The popularity of this incentive comes despite consumers making greater attempts to reduce food waste, and is something retailers can further capitalize on.
Key reasons to purchase this research
- What are the key factors that influence perceptions of value when shopping?
- To what extent does the popularity of major promotional techniques differ in popularity from country-to-country?
- How can promotional techniques be modified to target current consumer attitudes and behaviors?
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