Executive Briefings

Plan Developed to Improve Retail Promotion Planning, Evaluation and Execution

Brick-and-mortar retailers - including supermarkets, discounters, drugstores and mass merchandisers - rely heavily on promotions, which typically account for 10 to 45 percent of their total revenues. Although promotions are a powerful instrument for increasing sales and margin, they are also difficult to use effectively.

Plan Developed to Improve Retail Promotion Planning, Evaluation and Execution

One reason for this is a lack of clear insight into which promotions are working - and why. The Boston Consulting Group's research indicates that 20 percent to 50 percent of promotions generate no noticeable lift in sales - or, worse, have a negative impact. Another 20 percent to 30 percent dilute margins in that they don't generate an increase in sales sufficient to offset promotion costs.

To help retail companies run fewer, more effective promotions, there is a four-part approach to improving promotion planning, evaluation and execution. By adopting these practices, companies can increase the margin on promotions by 2 to 5 percentage points and position themselves to win in an increasingly challenging retail environment.

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One reason for this is a lack of clear insight into which promotions are working - and why. The Boston Consulting Group's research indicates that 20 percent to 50 percent of promotions generate no noticeable lift in sales - or, worse, have a negative impact. Another 20 percent to 30 percent dilute margins in that they don't generate an increase in sales sufficient to offset promotion costs.

To help retail companies run fewer, more effective promotions, there is a four-part approach to improving promotion planning, evaluation and execution. By adopting these practices, companies can increase the margin on promotions by 2 to 5 percentage points and position themselves to win in an increasingly challenging retail environment.

Read Full Article

Plan Developed to Improve Retail Promotion Planning, Evaluation and Execution