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 Understand the impact of in-store promotions on brand loyalty and on different types of shoppers
Retailers and manufacturers are fighting to maximise their return on investment from a range of in-store promotional mechanics. But what do shoppers think of these promotions and which ones are most popular for different categories?
IGD’s research ‘In-store Promotions – Optimising your Investment’, found that there is an even split between shoppers who look out for promotions and those who don’t. While some shoppers are experimenting more by trialling new products on promotion, others are becoming more brand loyal.
Experimenting with food
With the TV schedules spilling over with cookery programmes and more of us eating out regularly, many shoppers are feeling inspired to change the foods they eat or to try new food at home.
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| Promotions can inspire new product choices | |
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Our research has found that since 2004 there has been a significant rise in the number of shoppers who buy products on promotion to try new products (17%, up from 13% in 2004).
Those most likely to look out for promotions to try new products are those aged under 55. Shoppers appear more willing than average to experiment with new brands of ready meals and cooking sauces. They are also more than willing to trade up and purchase premium priced wine on promotion.
Many shoppers still remain canny when it comes to food and grocery shopping. Around a quarter (26%) look out for promotions as they believe they are getting better savings through shopping for offers than they would with constant lower price strategies.
Promotional seekers vs. non-promotional seekers
Brand loyalty and promotions
However, while younger shoppers appear to be more willing to experiment with new products, older shoppers seem to be driving an increase in brand loyalty. Our research found that significantly more shoppers are claiming to be brand loyal and avoiding promotions in 2007 compared to 2004. Over 65’s are most likely to be brand loyal.
The level of brand loyalty is dependent on the categories being purchased. More than four in ten shoppers claim that they will always buy certain brands even if a competitor product is on promotion and offers a better deal. Many shoppers in our qualitative research were unwilling to brand switch because of concerns that they will lose out in terms of poorer quality. Shoppers were also suspicious that any competing brand would not taste as good as their current brand. They also had concerns around their health. Some were concerned that certain brands of washing powder and washing up liquid would cause them allergies. Many shoppers had developed a sense of trust in some of the brands that they used. This experience had made some of them reluctant, particularly older aged shoppers, to try something new when they are happy with the performance of what they currently buy.
More information:
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In-store Promotions - Optimising Your Investment
Are promotions just another price mechanic or can they build & maintain shopper loyalty? IGD's In-store Promotions - Optimising Your Investment report will examines consumer attitudes to in-store supermarket promotions and identify opportunities for retailers and suppliers. |
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