As more companies look to drive shareholder value, are we seeing true growth or simply one more promotion?

With increased competitive pressure, it is inevitable that manufacturers are investing more trade funds in the short term to deliver growth. But what if the long-term effect of this investment has the effect of training more of your core buyers to only buy on promotion?

Do you devalue your brand’s proposition to such an extent, that eventually consumers no longer perceive a significant difference between your brand, its competition, or ultimately the retailers Private Label offer?

PromoFocus: Are you devaluing your brand/category by training consumers to buy on deal?

In a first of its kind study, ACNielsen | Analytic Consulting provides a comprehensive evaluation of the long term effects of trade spend to ascertain whether companies are achieving true growth, or simply undertaking one more promotion.

PromoFocus research objectives:

• To quantify and benchmark the extent to which we are training consumers to buy on promotion, and understand how this has changed over time
• To identify categories and brands that have grown without increasing promotional dependency
• To help shape marketing activity by gaining insights into consumers who buy the category at full price
• To understand how various sales and marketing activities affect both promotional and full price buyers on an on-going basis.*
  

PromoFocus adds a consumer dimension to:

• Understanding the impact of promotions
• Category reviews
• Targeting your promotional spend
• On-going analysis and tracking based on consumer impact of promotions.*

*Data from ACNielsen | Homescan database – available to category subscription clients only

Report content:

PromoFocus segments category buyers on the basis of their promotional purchasing

(chart 1). Once identified, these promotional groups are profiled in terms of demographics, purchasing behaviour, attitudes and what they have purchased. This allows you to formulate a strategy that delivers growth while minimising brand devaluation (chart 2).

Chart 1: Buyers are segmented on the basis of their promotional purchasing for individual categories

Chart 2: Once promotional groups are profiled, marketing strategies can be adjusted to deliver growth while minimising brand devaluation

For ACNielsen | Homescan category subscribers, buyer segments can be coded into the Homescan database, allowing you to understand the impact of your promotional tactics on these groups ongoing.

To find out more about PromoFocus, click here to download the product information flyer. Alternatively, please contact your ACNielsen Account Manager.