Appealing without promoting?

Posted by Oliver Koll on May 13, 2015

promotionThe increasing reliance of brands on price promotions to influence consumer choice is widely reported. While we do not see much difference between the promotion levels in different category groups (although the average household brand is on promotion less often than the average food, beverage or personal care brand), we find that brand share impacts promotional activity: Looking at a brand’s promotional activity in the top three retailers in a country we find that large brands (are requested to?) promote substantially more often (36 weeks vs 13 weeks per year with any SKU on promotion) and promote a larger part of their range than small brands. However, the percentage of volume sold on promotion is quite similar (23% vs 19%). Large brands therefore are better able to drive choice when not on promotion – an indication of higher equity.