We give our analysis of non-price promo activities in Russian retail over the period of 3 years (2014-2017). At the end offer a tool to increase efficiency and customers' engagement.
2. 2
CASE-STUDY of effective promo
offers with a minimal discount
amount -
Russian and International
manufacturers
HOW and WHY do we need to reduce
attachment to promotional price offers?
Why sales significance
is getting decreased in
shoppers perception?
What is the implication
for manufacturers and
retailers?
Salt non-price promotions
formula:
«Manufacturer + Retailer =
Shopper’s Love»
WHAT and HOW should
manufacturer do in order to
have effective non-price
promotions?
A
thoughtful
gift
Shopper
experience
collaboration
Shopper’s
promotional
education
Promo
WITHOUT
a promo
ON-LINE
into OFF-
LINE
What is the
issue?!
What should a manufacturer
do?
Five techniques to win a shopper’s
heart
4. 4
Top 20 FMCG
categories purchased
with sale.
An average sales
volume with
promotional offers is
58%
5. 5
Retailers
Average transaction
amount growth and
increased number of
consumers
02
01
03
Consumers
Pleasant experience and
provision of essential goods at
a good price.
Manufacturers
Stable growth within the
brands sales portfolio
6. 6
Growth
Significant sales growth of a brand
with a promotional discount offer on
on the shelves. However,
generally, brands with the highest
awareness and market penetration
are the ones to win. The new and
weak players perceive promotional
price offers as an obligation
imposed by retailer chains.
Control
High awareness level of
promotional price offers amongst
consumers, promo’s benefits
demonstration to the key category
players, control insurance over the
manufacturers.
Benefit
Emotional benefit gain, a
constructed habit of purchasing
goods with a low frequency rate
and exclusively with an offer.
Perception of non-promotional
goods as the ones that are not
beneficial (sense of waste)
7. 7
Promotional price
is perceived as the
permanent price
Stops purchasing
without a discount –
a habit of buying in
advance
A decreased loyalty to
manufacturers’ brands
and retailers
SHOPPER
8. 8
In order to achieve a desired
financial performance in a short
term perspective
Manufacturers and retailers
maximize :
• Promotional units quantity
• Shops quantity
• Discount amount
11. 11
Formation of effective
mechanisms for value proposal
for shoppers
Beneficial for both, manufacturer
and retailer
Allowing to avoid/minimize
sales discount
NON-PRICE
PROMOTIONS?!
12. 12
Five techniques to win a
shopper’s heart
A thoughtful
gift
Shopper
experience
collaborations
Shopper’s
promotional
education
Promo
WITHOUT a
promo
ON-LINE into
OFF-LINE
13. 13
To make an offer that a consumer cannot
refuse
A THOUGHFUL GIFT
Unconditional gift
To reward consumer solely
for the fact that he lives as
he wishes to
‘On the occasion’ gift
We are aware of what is
happening in consumer’s
live at the moment and we
are ready to support him
14. 14
STICKY TOYS
My daughter fell in
love with these toys.
When we were
collecting the last
remaining heroes I
kept purchasing
products solely from
the super mаrket
where we discovered
them in a first place
Promotional offers with sticky toys
have increased number of “Diksy”
followers in “Vkontakte” by 10 times
and there is an 4–8% turnover growth
in the world
Gamification of a routine family shopping
practices by keeping freedom and simplicity
of choice.
Exclusion of a situation when there is an
automatic expectation of promotion
15. 15
Carefully constructed gift :
interactive process of plants
cultivation
While offering interactive gifts,
manufacturer and retailer should
double check whether there is
enough time for such activities in
consumer’s live.
PLANTATION OFFER
16. 16
The brand is built into
burdensome lifestyle
practice and becomes an
ultimate assistant to its
consumer.
Turnover growth through
appealing to consumer’s value
of friendship.
VP Kozel
«Beer for friends»
17. 17
Reduce spending on promotional offers for
those occasions when retailers aim for the
highest discount from manufacturer
SHOPPER EXPERIENCE COLLABORATION
A power of creative
collaborations
Well-known brand
manufacturers and unique
brands
18. 18
Aqua Minerale gives
consumer an
attractive lifestyle
relevant to SKU
LaModa obtains traffic
growth
Retailer benefits with
turnover growth
Expenditure = «0»
19. 19
Jameson provides
consumer with a gift –
occasion = purchase
cost
OKKO obtains immediate
traffic growth and
knowledge
Retailer benefits with
turnover growth
Expenditure = «0»
20. 20
Remove consumer’s hesitations that are based on lack of
knowledge at the time of making a purchase
SHOPPERS PROMOTIONAL EDUCATION
Education
We know – what is uncertain
to you – how?
We explain!
We provide you with
valuable education!
21. 21
Education motivates
a shopper to make a
purchase right here
and right now,
The “I think about it
and make a
purchase next time”
option – excluded!Manufacturer and retailer gain:
• Instant purchases of unique brands
• Faster new products launch
22. 22
Education brings
consumer in the world of
inaccessible occasion
Consumer gets a gift
with a significant
perceived value (higher
than the product)
Manufacturer and retailer obtain premium brand turnover
growth for a regular price
23. 23
We offer a unique product that consumer seeks himself and
purchases without alternative choice options
PROMO WITHOUT A PROMO
Create a unique product,
which absence in retailer’s
range reduces turnover and
slows down category
development
24. 24
The brand ensures variety alteration once a year, offering
unique products that are relevant to contemporary
tendencies
The product that sells itself
Retailer is dependent on manufacturer, driven by
consumer’s interest
25. 25
Manufacturer launches SKU, presented by only one retailer
and obtains special placement conditions
SKU complies with the most urgent consumer taste trends –
genius product development
Retailer gets an «addictive» consumer
26. 26
SKU limited edition – placed on a shelve for a short amount of
time : seasonal, holiday based, occasional
Consumer’s attention is drawn (novelty effect).
27. 27
Selection of a platform that holds a strong social significance for retailer chains
communication
Example: TetraPak and Azbuka Vkusa/Perekrestok
Promotion of ecologically responsible, socially acceptable and economically viable
management in a world through certification
28. 28
Quality statement
Increased significance of local origin:
fresh, native, intimate, close
Reduced promotion expenditure, sales
growth through increased visibility on the
shelves (price tag, separate shelf,
package mark)
Drawn attention to a federal chain
29. 29
Implement the following: price promotions to be used only
by valuable consumers
Loyal
Permanent
Coming back
Purchasing with and
without promotions
ON-LINE INTO OFF-LINE
Bringing those who live
nearby –
solely for our product
30. 30
Price promotion launch to be
accompanied by geo targeting
communication
Value is delivered to consumer
in a focused manner
Turnover growth
31. 31
Manufacturer + Retailer =
Shoppers Love
A thoughtful
gift
Shopper
experience
collaborations
Shopper’s
promotional
education
Promo
WITHOUT a
promo
ON-LINE into
OFF-LINE
34. 34
To identify pain signifiers
What are the exact difficulties in terms of
consumer’s choice, trust, cross
categories – how is this relevant to his life
style?
To define the
context
Identify the key factors that
build habits within the
category, communication
channels, triggers, examples
To implement
Guiding the project after
choosing a plan with the
highest potential
To design
Shaping potential project
realization methods, including
agreements with potential
partners
35. What
EXPERIENCE
can the brand
organize for a
shopper
within the
retail?
Why, despite
the high
indicator of
brand relation,
consumer
DOES NOT
MAKE A
PURCHASE?
What is the
exact
RETAILER’S
specific that
can be
beneficial for a
brand?
How do we
need to help
retailer to
CHANGE THE
CATEGORY,
based on your
brand’s
interests?
Shopper’s research in order to find non-price
promotion brand strategies through each step
36. 36
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We believe that anything is possible.
Our task is to choose the right direction