In the consumer goods landscape, consumer choices are becoming more complicated due to rising competition, developing channels and volatile input costs. The combination of these and other factors have retailers and manufacturers re-evaluating myriad promotion options to boost profitable sales by delivering the right value to consumers.
In the best case scenario, promotions increase product visibility and brand awareness, grow category sales, and differentiate the promoted product to grow share of an expanding market.
The most common result of many promotions over the last several years, however, is more losses than gains. More than two-thirds of the trade promotions that happen each year in the U.S. don't break even. And what's even more telling is that eliminating 22% of trade promotions would actually help companies increase sales. So why is that?
Based on learnings from our work with numerous CPG manufacturers and our recent analysis of more than 92 million promotion event weeks covering three years and 211 categories, Nielsen identified four fundamental issues that are hindering trade efficiency. Download the webinar to learn how these findings, combined with a strategic roadmap for promotional overhauls, are changing some U.S. companies' promotional stories to ones with better outcomes.