How to create an effective price promotions strategy

Rod Street
Symphony IRI


Go to: EXECUTIVE SUMMARY

Go to: ESSENTIALS

Go to: WHERE TO START

Go to: WHAT TO AVOID

Go to: CONCLUSION & CHECKLIST

Go to: FURTHER READING


EXECUTIVE SUMMARY

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.