FMCG companies plan to move away from discounting

by on 07/07/2011

The Letterbox Consultancy recently attended an IPM seminar ‘In Place of Price’. The seminar projected discussions regarding the challenges faced by retailers and FMCG companies, which are trying to move away from ongoing price discounting activity and re-focus on marketing their product.

The over-reliance on price discounting was shown to cause problems with brand loyalty, an unknown status on the true price of a product, and the difficulty in managing key retailers.

An overwhelming number of Brand Managers in the audience acknowledged that a key objective for their company is to move away from price discounting.

So, how can brands achieve this, whilst still engaging consumers and keeping sales volume at a high level? Of course, there is no magic formula, and a number of ideas are being considered that lead to an integrated, structured approach.

One potential solution, as part of an overall package, is the use of couponing. Consider, for a moment, that coupons can be delivered to clusters of 150-200 households that match your target profile – the people most likely to buy your product.

Did you know that the second largest driver for opening mail is if recipients know, or believe, that there is a coupon inside?

Did you know that 40% of consumers would redeem a coupon of just 20p?

Did you know that coupon redemption can be accurately predicted per store, to ensure efficient stock control?*

Did you know that door drop marketing consistently outscores every other form of media for recall and response levels with the BPS Survey?

The Letterbox Consultancy can proudly boast the most up-to-date and intensive door drop targeting techniques. Using these techniques to deliver a relevant coupon into the hands of your potential customers will provide sales uplift, long term sales growth, and will help your business move away from continued discounting activity.

Why not speak with us today to find out how you can plan and implement a test campaign?

* Information extracted, with kind permission, from In Place of Price Whitepaper – produced by IPM.

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– who has written 57 posts on Letterbox Consultancy for Door Drop Marketing.

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