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Spend Smart – Maximize Your Marketing Efficiency in Russia
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Spend Smart – Maximize Your Marketing Efficiency in Russia

Andrey Dvoychenkov, Customer Analytics Leader

With the pull for consumer’s attention at an all-time high, how do you ensure your marketing campaign is delivering on the investment? Finding the best mix of media and trade promotions to drive incremental sales doesn’t always need to cost a lot. Nielsen research shows that investing efficiently in a mix of new and traditional advertising and promotional vehicles can increase your return on investment.

In Russia, promotional pressure is growing. In 2011, half (53%) of food sales and 44 percent of drug sales were driven by media and trade promotions – a rise of 13 percent and 19 percent, respectively, compared to 2010. With half of Russians making a purchase decision at the time of purchase, finding the right promotional mix to affect sales is critical. The window to project a message is tight. And not all strategies are created equal.

Small Contribution, Big Pay Off

A Nielsen study revealed that whilst in-store visibility tactics like temporary price reductions (TPRs), store-aisle displays, and leaflets drove the largest contribution to food sales (29%), the net incremental sales lift for these vehicles was not as effective as other promotional strategies reviewed. Gift promotions, banded or multi packs, and overfill strategies contributed a much smaller percentage to sales (5%), but delivered a weekly return of investment that was double the in-store methods.

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Low Cost, High Return

On the media promotion front, return-on-investment (ROI) is highly impacted by media type and campaign cost, but Nielsen research showed that low-cost digital campaigns can impact sales in a big way. In the study, digital generated a 377 percent ROI, compared to a 22 percent lift generated with TV.

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The best marketing strategies are those that balance both media and trade promotions tactics. Knowing which ones will be most impactful for your brands takes an intimate knowledge of your consumers and knowing how best to reach them with messaging that resonates with their needs. One size does not fit all in this environment and real time adjustments of marketing mix can make or break a campaign.