Gillian Swaine, Ireland Market, Bord Bia
With the festive season approaching retail promotions are set to become and this trend seems set to continue into 2010 given the sharp slowdown in the economic environment. Consumers are constantly seeking out the best value for money when shopping and Ireland is in the top 10 most promotionally sensitive countries in Europe according to Nielsen research who point to the fact that shoppers are actively searching for promotions, which is impacting on brand and store switching.
Recent research by IGD highlights the need to ensure that promotional strategies are driven by shoppers' needs rather than internal business requirements. They point to the fact that achieving the right combination of structure and flexibility will ultimately drive success. The IGD has identified five key principles that promotional planning should be based on:
• Customers value simplicity. Round price points have become a prominent feature across the food and grocery sector, and have successfully demonstrated value, affordability and accessibility. Fluid lives which is one of the six Bord Bia Consumer Lifestyle Trends also points to people’s desire to simply their lives by taking control and freeing head space for other issues.
• Retailers will focus on more innovative promotions. Differentiation is key and therefore a greater use of private label and loyalty card schemes is anticipated. Branded suppliers that recognise the unique characteristics of their individual retailers and tailor their promotional approach in response will increase their chances of success.
• Playing the loyalty card: Maintaining customer loyalty is a top priority on retailers agenda’s.
• Meal deals will remain key. Linked to the fashion for thrift, the ‘eating in at home’ theme is now well established It is important to note that value underpins the entire 'meal deal' trend, whether it is offering savings on mid week family deals or more indulgent weekend meals.
• More event-led promotions. There is set to be an increased focus on cross-category promotions. Sporting and seasonal events are well embedded in the promotional calendar and as a result a greater focus on seasonal products is set to be a key feature of the marketplace.