How to create an effective price promotions strategy
Promotional activity is at record levels in many geographies and industries. Some soft drinks brands routinely attribute over 80% of their volume sales to some kind of promotion.
In the FMCG sector as a whole, promotions have risen in most countries in the last three years, and now account for more than 40% of volume sales in the USA, over 50% in the UK and between 20 and 30% in Italy, France and Spain. For the USA and UK, this represents growth of 20-30%. This explosion has created a challenge for brand owners to manage both the volume of promotions and the price reductions attached to them.