Promotions in crisis: Where next for FMCG marketers if deals no longer drive volume growth?
Food and non-food price promotions don't always boost or sustain volumes in the way that they used to. Over the past year, the volume of fast-moving consumer goods sold on promotion in Europe increased 2.7 per cent, yet volume sales dipped by 0.1 per cent*. Tim Eales explores why.
*IRI Pricing and Promotion in Europe Survey, 2013
While a volume decline of just 0.1% might not seem to be very much, it must be taken in context. As a rule, every year, the volume of grocery sales is expected to increase. This is driven by increased disposable income, increased assortment or range, but mostly by population increase. However, the past year was different. The recession across Europe has made consumers think again about their grocery expenditure: they must mitigate the effects of price increases and they want to waste less.