Promotion Huge in CPG Sales

It is no surprise that low prices and promotions have become important to consumers as they look to stretch their shopping dollars. And even though economists are now saying that the recession is over, most retail experts believe that consumer buying habits have been changed forever. What is surprising is the extent that promotion plays in typical supermarket sales.

A study by The Nielsen Company has shed some light on the direct effect of sales promotion. The study says that almost 48 percent of grocery purchases are sold on promotion. That’s up two percentage point from last year. And it’s not just grocery stores. The study says that over 40 percent of Drug store sales are linked to promotions, displays and features.

So what drives the success of these promotions? Nielsen says it is a matter of setting goals for each promotion and then measuring the results to determine optimal promotion effectiveness. Finding the right mix of product, price and display support are the keys to success.

For the members of NARMS, these results are welcome news. Our membership is made up of at-retail merchandising and marketing support companies who are out in retail aisles everyday making sure product is on the shelf, promotional end-caps are built and point-of-purchase material is in place. The best planned in-store promotions will not work without flawless execution at the shelf. Additionally, our companies can monitor and measure the results of at-retail activities by using constant presence and advanced data collection and reporting capabilities to give their clients a portal into each retail location.

The importance of at-retail marketing and promotion is at an all time high. Now is the time for CPG manufacturers and retailers to partner with NARMS members as part of an integrated promotional solution.