A Retail Evaluation Of Promotional Tactics In The Food Industry

In an effort to ease communication between packaged goods manufacturers and retailers, this study investigates food retailers' preferences concerning the various promotional programs used in their stores. Through the use of a mail survey, retail executives from supermarket companies shared their perceptions of 22 specific promotional programs regarding each program's use, effectiveness, and attractiveness for future support. According to retailers, clear and consistent promotional performers include targeted direct mail, shipper displays, in-store coupons, in-ad coupons, and in-store demos and sampling. It is noted, however, that the use and perceived effectiveness of these programs may not always seem consistent. For example, retailers felt that promotions tied to local charities are relatively ineffective for increasing product movement or overall store sales, and yet this promotional tool is used by 92 percent of surveyed retailers. On the other hand, frequent shopper programs received favorable marks regarding program effectiveness, and yet they are not commonly used by retailers in this survey. Ultimately, the value that a retailer places on any given promotion is a function of that promotion's ability to meet stated retail objectives, which may extend beyond any hard sales statistics.