If you work as a marketer in retail or you manage a store, you have to know what types of modern promotions in retail are the most effective. This is crucial, because in the 21 century marketing is king in retail.
Here are 6 most effective promotions in retail today:
Old as the world, but still super effective. BUT! It takes a lot of analysis to make a good discount promo, because not every product can be sold effectively with a reduced price. Usually marketers tend to promote products that are already being sold well (“stars”), or products that are needed to be heavily promoted in order to win more market share (“question marks”). Nevertheless, BCG matrix is a useful tool in such analysis.
Gift with purchase
When talking about promotions in retail this one is the second most used. The basic example can be Pasta with a kitchen spatula. Or whiskey with cola (depends on where you live, because in some countries promo regulations are harsh on alcohol). Also such promo as, for example, buy 3 get 1 for free is also an example of gift with purchase. There are two key things in making it right – make a good analysis of what product to promote and make a suitable gift.
Promoters in a point of sale
This can be super effective, especially combined with good ATL advertising. For example, the commercial on TV or internet tells consumers about bonuses for purchasing their product in some retail chains. And when a consumer comes to a store, there are already qualified promoters with good bonuses, giving out gifts for purchases. If this promo done right, it will also lead to good brand recognition and increase in loyalty.
Tip: remember to share pics on social media.
This is usually done to support some event. For example, if a new movie with a product placement comes out, or to support sport games and so on. Sometimes even a change in packaging can make a world of difference.
Promotional packaging is also often used in combination with other promotions, such as a gift for a purchase – when a new packaging is used to highlight a gift. In certain cases, promotional packaging can be combined with advertising in the media, again emphasizing the importance of a particular corporate or other event (even if it is just a holiday).
This is a new trend in trade marketing. Some products can have a digital code for such bonuses as a free mobile game, or a discount for first purchase in an online store. If properly combined with good packaging and maybe even POSm (shelf talkers, for example), it can lead to very good results.
Promotions in retail are not always having a small scale, they can be huge too. Prize draw is exactly that, and it works extremely well even in a small chain. From our personal experience, if a company starts this type of promo with a prize such as a car and a few others, supported by ads on TV, internet and other BTL promo (discounts and so on), then the result will be HUGE! Last time we did such promo we barely manage to keep all product stocks in retail chains, because the demand was through the roof.