How does Promotion fit into the updated CatMan 2.0 framework?
Promotions are intended to influence Shopper attitudes to cause a specific behavior.
Promotion is important for us to understand because of the billions of dollars being spent on trade spend (up to 20% of a supplier’s spending), and because approximately 40-50% of Shopper’s purchases are sold on promotion.
Of note, is that many promotions that have worked in the past are no longer having the impact. Lifts have decreased by >15% in the past 10 years.
For retailers, promotion relates to both marketing of the retailer’s brand (including retailer marketing, store brands, flyer programs and event marketing) and then more specifically on flyer programs and other promotional events.
With the advancement of data and technology, there’s an opportunity to make more strategic, fact-based decisions to optimize promotions for both retailers and suppliers.