What is the best price and promotional strategy, in-store and online?

What are the current trends in price and promotional strategy? And what do shoppers find important in this? In September, IGD Research conducted extensive research amongst shoppers in the UK, resulting in valuable insights. When it comes to special offers, shoppers appear to be especially interested in fresh products; from meat and fish to fruit and vegetables. That’s interesting, but do current promotional strategies also offer the best results?

The danger of focusing on a low price per product too long

The report of IGD describes two promotional strategies focused on low pricing. First, the so-called price match where premium supermarkets match the price of certain products to those of discount supermarkets. Another example is the price lock, where the price of several products is set for a certain time. Still, it isn’t advisable to focus on low pricing for a prolonged period. Chances are the sector will eventually crumble, due to high production costs and limited returns. No chain partner or shopper benefits from that.

Loyalty scheme not only valuable for shoppers

Another way to bind shoppers to you is a loyalty scheme; think of Tesco’s Clubcard and Sainsbury’s Nectar. Through a special card or app, shoppers not only receive personal offers, but they can also collect points and receive rewards. An additional advantage is that such loyalty schemes offer retailers valuable insight into their customers’ buying behaviour. This information can then be used to create new promotional strategies that meet the current needs of shoppers.

Where and when should products be successfully promoted?

But there is more to gain, both in-store and online. The results of IGD show that in recent years, shoppers were only moderately happy with the special offers they came across when purchasing products. This means there is room for improvement. Not only the placement of such offers is of importance – at which point in the customer journey does a product get promoted? – but also the way in which this is done. Which route do shoppers take, both in-store and online? And where do they expect to find the best offers? Is it instantly clear what the advantage is, and does it meet their needs?

Creating value is the responsibility of the entire fruit and vegetable sector

Some shoppers will not be tempted to buy bulk promotions, because they do not have space at home to store large(r) volumes. For them, a discount per product would be more appealing or an offer including several smaller packaged items. Meeting the specific needs of shoppers is not just the responsibility of retailers; as a supply chain we can play an active role too. Not just through delivering the right products, but also by suggesting specific promotions and delivering suitable input. Such as accurate planning, packaging options, and content to use in a magazine or app.

Ultimately, it is all about creating value for shoppers. This value should not only be visible in low pricing but also in an efficient customer journey where shoppers receive interesting information and personal promotions at the right time.

Growers United / Prominent has been conducting (international) shopper research for many years, to supply suitable products and interesting information. Curious to know how we can assist you? Do not hesitate to get in touch with Wim van den Berg of Growers United / Prominent: w.vandenberg@growersunited.nl of +31 (0)6 5756 4346.

Prominent is a brand of Growers United UA. This organisation is responsible for the sales, marketing, and quality control of the product.