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Communicated discounts (drinks wo alccols) 2017 2016

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Communicated discounts (drinks wo alccols) 2017 2016

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Communicated discounts (drinks wo alccols) 2017 2016

  1. 1. BATTLE SCENES in STORES ….. France January 2018, Intermarche communicates a promotion of Nutella 950Gr for 1,41 € instead of 4,70 €. -70% discount of Immediate discount Reactions of consumers was massive, uncontrolled, violent. Media broadcast the event, politics commented and finally the authorities are investigating. We decided to investigate, across 8 countries, to discover how Communicated Discount (CODI) are used by Retailers and by Producers. The results are fascinating:  There are markets where 85% of the promotions are supported with a CODI  More than 30 different mechanics have been created by marketing specialists  Discounts intensity from few % to more than 70%  Very fine tuned approach by category and type of SKU… The summery of that study is now available for marketing teams (Industrials or Retailers); they have the possibility to track innovations, trends, and benchmarks. The following pages display, as an example, KPI’s of the category drinks without alcohol, for 2017 vs 2016 Communicated discounts, is not a matter of offering the cheapest deal, but more about dramatization of the promotions that impact the irrational part of consumers: this leads to the PRICE PERCEPTION.
  2. 2.  The frequency of the CODI is not correlated with the size of the market. In Russia and in Slovenia 80% of the promotions in the category drinks w/o alcohol are supported by a discount.  Everywhere from year to year the share of supported promo is stable. (maybe not in Romania, 2018 will confirm if there is a trend)  In Hungary the CODI are less frequently used FREQUENCY Frequency is the ratio of promotions with a CODI vs all promotions in the category.
  3. 3. Communicated discount could be -3% or -60%. The significant frequencies are showing the most popular levels of discount per markets. 2017 vs 2016 It clearly shows that from 2016 to 2017 this discounts levels are similar (intensity and frequency), except in Russia where it grew significantly from -20% to -35 % in one year. Poland, Hungary, Slovenia and Slovakia have more complex structure of discount intensity, with 3 to 4 significant levels. When Serbia and Romania a mostly using the same discount value. INTENSITY Category (Tous) (Tous) Category (Tous) (Tous) Nom Year Nom Year Discount 2016 2017 Discount 2016 2017 -60% 0% 0% -60% 0% 0% -59% 0% 0% -59% 0% 0% -58% 0% 0% -58% 0% 0% -57% 0% 0% -56% 0% 0% -56% 0% 0% -55% 0% 0% -55% 0% 0% -54% 0% 0% -54% 0% 0% -53% 0% 0% -53% 0% 0% -51% 0% 0% -52% 0% 0% -50% 1% 0% -51% 0% 0% -49% 0% 0% -50% 2% 1% -48% 0% 0% -49% 0% 0% -47% 0% 0% -48% 0% 0% -46% 0% 0% -47% 0% 0% -45% 0% 0% -46% 0% 0% -44% 0% 0% -45% 0% 0% -43% 0% 0% -44% 1% 0% -42% 0% 0% -43% 0% 1% -41% 0% 0% -42% 0% 0% Category (Tous) (Tous) -40% 0% 0% Category (Tous) (Tous) -41% 1% 1% -39% 0% 0% -40% 1% 1% Nom Year -38% 0% 0% Nom Year -39% 0% 1% Discount 2016 2017 -37% 0% 1% Discount 2016 2017 -38% 1% 1% -59% 0% 0% -36% 1% 1% -65% 0% 0% -37% 1% 1% -56% 0% 0% -35% 0% 1% -54% 0% 0% -36% 1% 1% -51% 0% 0% -34% 1% 1% -50% 1% 0% -35% 1% 1% -50% 0% 0% -33% 1% 2% -49% 0% 0% -34% 1% 2% -49% 0% 0% -32% 1% 2% -47% 0% 0% -33% 6% 5% -48% 0% 0% -31% 2% 2% -46% 0% 0% -32% 2% 3% -47% 0% 0% -30% 5% 3% -44% 0% 0% -31% 1% 2% -46% 0% 0% -29% 2% 2% -43% 0% 1% -30% 3% 3% -43% 0% 0% -28% 1% 1% -42% 0% 0% -29% 2% 3% -42% 0% 0% -27% 1% 1% -41% 0% 0% -28% 2% 4% -41% 0% 0% -26% 4% 3% -40% 1% 0% -27% 2% 2% -40% 0% 0% -25% 5% 8% -38% 0% 2% -26% 3% 4% -39% 0% 0% -24% 3% 2% -37% 0% 0% -25% 10% 8% -38% 0% 0% -23% 3% 4% -36% 1% 0% -24% 2% 3% -37% 0% 0% -22% 3% 4% -35% 1% 1% -23% 4% 3% -36% 0% 0% -21% 3% 3% -34% 0% 0% -22% 3% 3% -35% 0% 0% -20% 6% 9% -33% 3% 2% -21% 3% 3% -34% 0% 0% Category (Tous) (Tous) -19% 3% 2% -32% 1% 0% Category (Tous) (Tous) -20% 11% 9% -33% 1% 1% -18% 7% 4% -31% 1% 0% -19% 2% 2% -32% 0% 0% Nombre de Discount Rate Year -17% 9% 10% -30% 4% 2% Nombre de Discount Rate Year -18% 2% 3% -31% 1% 0% Étiquettes de lignes 2016 2017 -16% 2% 3% -29% 3% 3% Étiquettes de lignes 2016 2017 -17% 3% 3% -30% 1% 1% -60% 0% 0% -15% 3% 3% -28% 2% 0% -59% 0% 0% -16% 3% 4% -29% 1% 1% -56% 0% 0% -14% 7% 5% -27% 1% 1% -58% 0% 0% -15% 3% 3% -28% 1% 1% -55% 0% 0% -13% 5% 6% -26% 2% 1% -57% 0% 0% -14% 3% 3% -27% 1% 1% -54% 0% 0% -12% 4% 2% -25% 8% 3% -56% 0% 0% -13% 3% 3% -26% 1% 1% -53% 0% 0% -11% 2% 3% -24% 2% 4% -55% 0% 0% -12% 2% 3% -25% 2% 2% -52% 0% 0% -10% 2% 4% -23% 3% 1% -54% 0% 0% -11% 3% 2% -24% 1% 2% -51% 1% 0% -9% 1% 2% -22% 3% 4% -53% 0% 0% -10% 2% 2% -23% 2% 2% -50% 8% 9% -8% 1% 2% -21% 2% 2% -52% 0% 0% -9% 2% 1% -22% 2% 2% -49% 1% 1% -7% 2% 2% -20% 6% 9% -51% 0% 0% -8% 1% 1% -21% 3% 2% -48% 0% 0% -6% 1% 1% -19% 3% 2% -50% 1% 1% -7% 1% 1% -20% 6% 5% -47% 0% 1% -5% 1% 2% -18% 17% 17% -49% 0% 1% -6% 1% 0% -19% 3% 3% -46% 1% 0% -4% 0% 1% -17% 9% 15% -48% 0% 1% -5% 1% 1% -18% 3% 4% -45% 0% 0% -3% 1% 1% -16% 2% 3% -47% 2% 2% -4% 0% 0% -17% 4% 5% -44% 0% 1% -2% 0% 0% -15% 2% 3% -46% 1% 1% -3% 0% 0% -16% 5% 4% -43% 1% 0% -1% 0% 0% -14% 2% 2% -45% 2% 2% -2% 0% 0% -15% 5% 5% -42% 0% 1% -13% 3% 5% -44% 1% 1% -1% 0% 0% -14% 6% 5% -41% 0% 1% -12% 1% 0% -43% 2% 2% -13% 8% 8% -40% 2% 2% -11% 0% 3% -42% 2% 1% Category (Tous) (Tous) -12% 6% 6% -39% 0% 0% Category (Tous) (Tous) -10% 5% 5% -41% 2% 3% -11% 8% 8% -38% 1% 0% -9% 2% 1% -40% 3% 2% Nombre de Discount analytic É -10% 7% 6% -37% 0% 1% Years Years -8% 3% 3% -39% 4% 3% Étiquettes de lignes 2016 2017 -9% 5% 5% -36% 1% 0% Étiquettes de lignes 2016 2017 -7% 1% 2% -38% 2% 2% -61% 0,41% 0,00% -8% 4% 4% -35% 3% 2% -60% 0,01% 0,01% -6% 0% 0% -37% 3% 4% -59% 0,69% 0,00% -7% 4% 4% -34% 0% 0% -59% 0,04% 0,00% -5% 1% 0% -36% 5% 4% -57% 0,00% 0,06% -6% 3% 3% -33% 4% 2% -58% 0,01% 0,00% -4% 0% 0% -35% 2% 3% -55% 0,82% 0,00% -5% 2% 4% -32% 1% 0% -57% 0,08% 0,01% -34% 6% 9% -53% 0,53% 0,00% -4% 1% 2% -31% 2% 2% -56% 0,03% 0,05% -33% 2% 2% -52% 0,13% 0,00% -3% 1% 1% -30% 11% 11% -55% 0,11% 0,04% -32% 2% 2% -51% 0,03% 0,00% -2% 0% 0% -29% 1% 1% -54% 0,12% 0,04% -31% 4% 3% -50% 0,13% 0,45% -28% 2% 3% -53% 0,06% 0,04% -30% 3% 3% -49% 0,00% 0,03% -27% 1% 1% -52% 0,20% 0,25% -29% 9% 8% -48% 0,02% 0,00% -26% 1% 2% -51% 0,19% 0,89% -28% 2% 2% -47% 0,69% 0,20% -25% 8% 9% -50% 0,63% 1,86% -27% 2% 3% -43% 0,68% 0,03% -24% 1% 1% -49% 0,25% 0,77% -26% 1% 2% -42% 0,15% 0,17% -23% 6% 5% -48% 0,52% 0,54% -25% 4% 4% -41% 0,02% 0,00% -22% 4% 6% -47% 0,44% 0,55% -24% 5% 5% -40% 0,35% 0,51% -21% 2% 3% -46% 0,37% 1,68% -23% 2% 2% -39% 0,68% 0,00% -20% 13% 12% -45% 0,53% 1,74% -22% 5% 5% -38% 0,16% 0,03% -19% 2% 1% -44% 0,47% 1,09% -21% 0% 1% -37% 1,50% 0,14% -18% 1% 3% -43% 1,08% 2,10% -20% 12% 11% -36% 0,68% 0,17% -17% 2% 1% -42% 1,02% 2,17% -19% 1% 0% FREQUENCY of discount values SEEN (distribution) 2017 vs 2016 for drinks wo Alcool (details of sub cataegories in drop menu) 0% 2% 4% 6% 8% 10% 12% -70% -60% -50% -40% -30% -20% -10% 0% POLAND 2016 2017 0% 2% 4% 6% 8% 10% 12% -70% -60% -50% -40% -30% -20% -10% 0% HUNGARY 2016 2017 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% -70% -60% -50% -40% -30% -20% -10% 0% SERBIA 2016 2017 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% -70% -60% -50% -40% -30% -20% -10% 0% CROATIA 2016 2017 0% 2% 4% 6% 8% 10% 12% 14% -70% -60% -50% -40% -30% -20% -10% 0% SLOVENIA 2016 2017 0% 2% 4% 6% 8% 10% 12% 14% -70% -60% -50% -40% -30% -20% -10% 0% SLOVAKIA 2016 2017 0% 5% 10% 15% 20% 25% -70% -60% -50% -40% -30% -20% -10% 0% ROMANIA 2016 2017 0% 1% 2% 3% 4% 5% 6% 7% 8% -70% -60% -50% -40% -30% -20% -10% 0% RUSSIE Série1 Série2 -25% -20% -50% -15% -30% -20% -20% -50% -10% -30% -20% -33% -10% -35% -20% Intensity is the frequency distribution of CODI by values. Slovenia is the market where very aggressive discounts (-50%) are significantly used in the category Drinks without alcohols.
  4. 4. CREATIVITY There are more that 30 ways to communicate a discount to a costumers. Creativity measure the frequency of each of them. An average of 13 are used in the category drinks without alcohols. Marketers of Hungary are the most creative with 15 SLOVAKIA SLOVENIA CAT ENG (Tous) ENGLISH (Tous) Communicated Discount Years Communicated Discount Years Types 2016 2017 Types 2016 2017 Price discount (loyalty card or not) 46,27% 46,07% -0,20 pts Price discount 39,83% 36,44% -3,39 pts Crossed price 36,09% 36,51% 0,42 pts Discount on loyalty card 27,96% 31,47% 3,52 pts Special price 2,94% 6,20% 3,26 pts Virtual wallet 17,19% 18,71% 1,52 pts out of which X pcs for free 5,12% 4,74% -0,38 pts crossed price 3,16% 4,07% 0,91 pts Discount on loyalty card 2,96% 3,26% 0,29 pts Other VL 3,40% 3,05% -0,35 pts other virtual discount 3,37% 1,08% -2,30 pts Lottery/ Games 1,95% 1,64% -0,31 pts Lottery/ Games by Retailer 0,58% 0,90% 0,32 pts Gratis "added" (AD) 2,25% 1,38% -0,87 pts Gifts 0,71% 0,51% -0,20 pts coupon 1,57% 1,28% -0,30 pts Lottery/ Games 1,53% 0,36% -1,17 pts Gifts 1,43% 0,82% -0,61 pts 1+1 gratis 0,36% 0,36% -0,01 pts Gratuities 0,22% 0,70% 0,48 pts Instant discount + virtual lot 0,06% 0,02% -0,04 pts Special price 0,38% 0,21% -0,17 pts 1+1 gratis 0,45% 0,14% -0,31 pts Loyalty points 0,21% 0,09% -0,12 pts CROATIA SERBIA CAT ENG (Tous) CAT ENG (Tous) Communicated Discount Years Communicated Discount Years Types 2016 2017 Types 2016 2017 Price discount 73,38% 71,97% -1,40 pts crossed price 46,57% 47,07% 0,51 pts crossed price 16,19% 23,06% 6,86 pts Price discount 30,32% 33,74% 3,43 pts Discount on loyalty card 2,12% 1,15% -0,97 pts Gratuities 14,98% 12,51% -2,48 pts Gratis "added" (AD) 1,30% 0,85% -0,45 pts Discount on loyalty card 2,35% 3,66% 1,31 pts Lottery/ Games 0,47% 0,73% 0,26 pts Other VL 2,53% 1,57% -0,96 pts coupon 0,56% 0,69% 0,13 pts Gratis "added" (AD) 1,28% 0,91% -0,36 pts Loyalty points 0,05% 0,61% 0,56 pts Lottery/ Games 0,81% 0,22% -0,59 pts Other VL 1,74% 0,46% -1,28 pts Gifts 0,82% 0,16% -0,66 pts Gratuities 0,36% 0,37% 0,01 pts coupon 0,03% 0,05% 0,02 pts Gifts 3,30% 0,06% -3,23 pts Loyalty points 0,16% 0,05% -0,11 pts 1+1 gratis 0,00% 0,03% 0,03 pts Vouchers and stickers 0,04% 0,03% -0,01 pts Special price 0,15% 0,02% -0,12 pts Special price 0,09% 0,02% -0,07 pts Vouchers and stickers 0,38% 0,00% -0,38 pts 1+1 gratis 0,02% 0,01% -0,01 pts Happy hours 0,01% 0,00% -0,01 pts HUNGARY POLAND CAT ENG (Tous) CAT ENG (Tous) Communicated Discount Years Communicated Discount Years Types 2016 2017 Types 2016 2017 Price discount 30,24% 29,96% -0,29 pts crossed price 45,83% 38,92% -6,91 pts Crossed price 28,53% 27,63% -0,90 pts Other VL 22,43% 25,42% 2,99 pts Other VL 18,11% 16,59% -1,52 pts Price discount (loyalty card or not) 21,46% 24,16% 2,70 pts Special price 8,60% 9,09% 0,49 pts Lottery/ Games 4,29% 3,60% -0,69 pts Lottery/ Games by Retailer 1,46% 4,12% 2,66 pts Discount on loyalty card 1,13% 2,18% 1,05 pts Loyalty points 0,00% 4,02% 4,02 pts Gratis "added" (AD) 1,49% 2,06% 0,57 pts Gifts 4,92% 3,49% -1,43 pts Gifts 0,26% 1,61% 1,34 pts Discount on loyalty card 2,14% 2,05% -0,09 pts Virtual wallet 2,20% 1,19% -1,01 pts Lottery/ Games by Producer 1,01% 1,57% 0,56 pts Loyalty points 0,07% 0,30% 0,23 pts Gratis "added" (AD) 4,23% 0,86% -3,36 pts 1+1 gratis 0,56% 0,30% -0,26 pts Happy hours 0,23% 0,25% 0,02 pts Money ticket 0,24% 0,24% 0,00 pts coupon 0,23% 0,23% 0,00 pts coupon 0,00% 0,02% 0,02 pts 1+1 gratis 0,19% 0,08% -0,11 pts Gratis "including" (IN) 0,02% 0,01% -0,01 pts Gratis "including" (IN) 0,10% 0,05% Buy back 0,01% 0,00% RUSSIA ROMANIA Category (Tous) Category (Tous) Nombre de Cons Adv EN Year Nombre de Consumer advantage Years Étiquettes de lignes 2016 2017 Étiquettes de lignes 2016 2017 Crossed price 54,59% 62,40% 7,81 pts Crossed price 45,92% 51,07% 5,15 pts Price discount (loyalty card or not) 34,21% 27,64% -6,57 pts Gifts on pack 12,12% 17,89% 5,78 pts Lottery/ Games 2,60% 3,31% 0,70 pts X% From the 2nd product (identical or not) 6,17% 11,18% 5,01 pts Other VL 4,46% 2,88% -1,58 pts Gratuities 10,04% 5,71% -4,33 pts Special price 0,90% 1,65% 0,75 pts Special price 13,18% 4,39% -8,78 pts Happy hours 1,86% 1,52% -0,34 pts Other VL 1,27% 2,30% 1,03 pts 1+1 gratis 0,27% 0,44% 0,17 pts Lottery/ Games 1,38% 2,16% 0,78 pts coupon 0,18% 0,08% -0,10 pts Money ticket 0,76% 1,82% 1,06 pts Gratis "added" (AD) 0,56% 0,03% -0,53 pts Price discount (loyalty card or not) 4,51% 1,82% -2,69 pts Gratis "including" (IN) 0,24% 0,03% -0,21 pts Loyalty points 4,53% 1,52% -3,01 pts Loyalty points 0,07% 0,01% -0,06 pts 1+1 gratis 0,08% 0,14% 0,06 pts Gifts 0,06% 0,01% -0,05 pts Cupon 0,06% 0,00% -0,06 pts Type of Communicated Discount per countries for non alcoolics drinks (share 2016 /2017 ) details by sub categories in drop menu
  5. 5. COMPLEXITY Crossed Price Game & lottery Loyalty points Special Price There are no limits to the commercial aggressiveness! A single promotion can cumulate 2, 3 or more discounts. This is what complexity shows. SHARE of Promo supported by 1 , 2 , 3 or more mechanisms of communicated discount 2017 vs 2016 50% 60% 70% 80% 90% 100% 2016 2017 HUNGARY 1 2 3 4 5 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2016 2017 SERBIA 1 2 3 50% 60% 70% 80% 90% 100% 2016 2017 CROATIA 1 2 3 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2016 2017 POLAND 1 2 3 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2016 2017 SLOVENIA 1 2 3 50% 60% 70% 80% 90% 100% 2016 2017 SLOVAKIA 1 2 3 4 50% 60% 70% 80% 90% 100% 2016 2017 RUSSIA 1 2 3 50% 60% 70% 80% 90% 100% 2016 2017 ROMANIA 1 2 3 4 Four cumulated discount seen in Hungary. Slovakia, Poland and Hungary are use to combine many discount mechanisms.
  6. 6. LEARN MORE about COMMUNICATED DISCOUNT ? Frequency, Intensity, Creativity, Complexity: 4 insights that gave us a global view how Communicated discounts are used in the category drinks without Alcohol in 8 countries. Now it time to go deeper in this analyse:  What says these Insights for waters? For carbonated drinks? For Juices? For energy drinks?  What are the retailer’s practices of using communicated discounts?  What are the brands the most creative? The most aggressive?  Others categories?  Your specific market or global?  Want to receive Discount Alerts as soon as they are published? If your consider the Communicated Discount as a impacting factor of your promotions, take the advantage to learn more about them. Send me your brief by mail at bernadett.ludanyi@hiper-com.com . STUDY SUMMERY Intermarche’s January promotions have been much in the news. But result in a significant gain of market share for the brand, on the P2 (from January 22 to February 18), the brand Intermarche gained 0.6 point of market share, 13.9% according to the latest survey of Kantar World panel. This extraordinary gain is explained by the success of operations "the 4 cheapest weeks in France", and the famous promotions on Nutella, Pampers diapers, or even Perrier, sold at - 70%. Kantar World panel summarized 2017 promotions. The promotion thus weighs 14.6% of French spending, or 11.8 billion euros (+ 3.5% year on year). Above all, "the promotion contributed to at least 45% of the 2017 market share gains of the U, E Leclerc and Intermarche brands, with a gain of 0.7 points in cumulative market share for these 3 banners," said the panellist. COMPLEXITY FREQUENCY INTENSITY CREATIVITY

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