Strength in (Our) Numbers
average 2018 Prime Day discount on Amazon.com
average 2017 Black Friday circular discounts across major retailers
average 2017 Cyber Monday circular discounts across major retailers
To Promote and Protect
With over half of marketing spending focused on market penetration strategies, the conflict between brand promotion and brand protection has never been more acute.
We can show you how to price effectively and promote competitively without eroding equity
Delivering the right prices and promotional incentives to consumers while simultaneously building strong manufacturer-retailer partnerships and protecting brand equity requires effectively managing against short- and long-term goals.
When it comes to trade spending and pricing decisions, the growth of omnichannel commerce represents a dilemma of sorts for manufacturers and retailers. It requires the ability to simultaneously leverage the strengths of each promotion type and sales channel while harmonizing the offer for an increasingly channel-agnostic consumer base.
Pricing variability continues to be more pronounced, with online retailers in particular changing their prices regularly (and many times leveraging price monitoring tools to make changes in near real-time). At the same time, brick-and-mortar retailers are forced to adjust to the downward pressure online retailers frequently apply to price.
Traditional advertising vehicles remain must-haves in the trade promotion arsenal. Annual spending on newspaper circulars, coupons, direct mail and catalogs has been rising consistently since 2012. Whether working with a legacy retail footprint or a pure-play online marketplace, companies embrace print promotions because they are effective. And traditional promotions remain an important (and sometimes overlooked) source of revenue for many retailers.
At the same time, digital coupon redemption has risen for the fifth year in a row, with the rate of increase ramping up dramatically in 2017. It’s estimated $55 billion in CPG trade spending will migrate online in the coming years. And marketers are increasingly leveraging the digital channels for both awareness and conversion, setting up the classic struggle between brand-building activities and the drive to make marketing activities measurable.
With increased competition, brands have to know whether their pricing and promotion decisions are elevating their top line or merely depleting their bottom line – often the difference between increasing market share and seeing hard-earned equity commoditized.