Enhancing incrementality and the return on promotions
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What did we do?
/ Retail strategy / Design / Research
Context:
Promotional spending constitutes one of the most significant investments for the majority of consumer goods brands, if not the most significant.
Maximizing this investment and improving the return is an ambition shared by all.
Challenge:
Developing a winning commercial strategy that surpasses the current one, addressing each and every aspect that plays a crucial role in it – discount ranges, scheduling and frequency, enhancing visibility in stores, and conducting an analysis that enables learning and decision-making for continuous improvement in the future.
Solution:
In consecutive working meetings, each of the specified challenges is addressed. For each one, an extensive analysis of external brands is provided, and with this benchmark, valuable insights are derived, contrasting the data with findings that are then tailored to the reality of Pescanova.
We collectively address the key decisions of the promotional plan: determining the optimal discounts, the type of promotional mechanics to promote and those to avoid repeating, the ideal frequency and timing for each brand, and the communication and argumentation for the retailer. Various visual representations of promotions are also designed across different platforms, and consumer insights are extracted through the process.
We end up designing a straightforward analysis approach, with 2 or 3 key variables that everyone must be aware of and consider.
