In an effort to ease communication between packaged goods manufacturers and retailers,
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.
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
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.