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Promotions, a strategy under question

Spain is at last of the list in Europe with promotional volume levels below 20%

  • Key4Communications

According to data from an IRI study, the promotions have reduced their attraction to the consumer. In this way, the report notes that 28% of consumer purchases in Europe that have been made during the past year have focused on products that were being promoted. Data that represents a decrease of 0.7 points compared to the same period of the previous year.

This fall at European level is driven, in large part, by the United Kingdom and Germany. In this sense, the other European countries analyzed by the report are showing stable levels of promotion, except by Netherlands, where this activity has grown.

United Kingdom, the country with the highest promotional activity in Europe
In terms of promotions, the United Kingdom remains the most active country in Europe, with a 51.5% share of sales under offers on the total marketed in the country. France and Spain, meanwhile, are at the bottom of the list with promotional volume levels of 20%.
In this sense, in Spain, food sales in promotion account for 19.6% of the total in large consumption. A figure that, when analyzing non-food products, is reduced to 18.6%.

New Zealand, less pressure on promotions
While the United States has maintained stable levels of trade promotion, Australia has increased by one percentage point.
However, New Zealand, the country with the greatest pressure on promotions in the countries included in the report, with 55.8%, has reduced its activity by 2.8 points.

'Off-shelf' promotions and special exhibitors, up
Another aspect highlighted in the study by IRI is the lower interest of buyers for the '2x1' promotions. A model of offers that in the United Kingdom has suffered a fall of 15,2% to 11,9% in the products of great consumption.

However, there is an increase in 'off-shelf' promotions, or also in special exhibitors, accounting for 14.5% of the total turnover in the United Kingdom, and 11.3% in France.

Promotions under question

The IRI report highlights the fact that some manufacturers are beginning to question the benefits of massive price promotion campaigns.

Currently, marketing budgets are in a situation of pressure, an added fact to the potential long-term risk of damaging the heritage of brands as a consequence of frequent promotional activities.

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