To optimize your pricing strategy, it’s critical to have a deep understanding of which items in your portfolio are best suited to a high-low pricing strategy and which ones would benefit from everyday low price.
An average of four in 10 free-standing insert coupon redeemers will return to buy the same product again, but repeat rates vary broadly by campaign, ranging from 3% to 84%, according to an analysis from GfK’s National Shopper Lab database. GfK found 32% of redeemers who are already loyal to a competitive product will still repeat with the new brand. Half of coupon redeemers are current buyers of the couponed brand, while the other half are new or lapsed. The findings span 2013 to 2017, representing print coupon campaigns in 45 CPG categories.
Inspire Brands Inc. will acquire Sonic Corp. for approximately $2.3 billion. Following the completion of the transaction, Sonic will be a privately-held subsidiary of Inspire and will continue to be operated as an independent brand.
With an estimated $55 billion in CPG business-to-business spending heading to the web, supermarkets could capture more of this through efforts like brand stores and featured products.
Walmart has finalized a deal to acquire a majority stake in India e-commerce leader Flipkart Online Services Pvt. Flipkart’s board has approved an approximately $15 billion agreement to sell a 75% interest in the company to a Walmart-led group expected to include Google parent Alphabet Inc.
Google is offering its first voice-activated coupon, which will give users $15 off their Target purchase when the purchase is made on Google Express via Google Assistant. The company partnered with Target on the pilot program to encourage awareness and use of its voice-ordering options.
The report found coupons continue to drive traffic and sales, and alter shopper behavior. Customers with coupons buy more, sooner and purchase brands they might not otherwise.
CPG firms looking to cater to coupon-clipping consumers need to strike the right balance of print and digital media.
In-store demonstrations and sampling are a traditional way to boost sales, but it’s an open question as to whether they are as effective in the digital age, Gina Ashe of ThirdChannel writes. Employing representatives who can properly run and experiment with demos in order to collect data that will help drive sales is an important move in today’s retail environment, she writes.
Food retailers can use cross-promotion to boost sales in the fresh and frozen sections through strategies including placing mobile freezers in the fresh department or using seasonal pairings to create an occasion for putting a display of fresh food in the frozen aisle, industry experts said. To avoid the challenges associated with the logistics of physically cross-promoting foods between the fresh and frozen sections, retailers can also consider using price-point promotions that connect foods across the store, such as apples and frozen pie shells, they said.