CASE STUDY

Price and Trade Advantage™ case study sees £750K savings per week through promotional de-escalation

Sep 12, 2023

Snapshot

MARKET RESEARCH SERVICES

Precision Price and Promotion

DATA TYPES

POS

INDUSTRIES

Food and Beverage

COMPLETION

Q2, 2024

The Challenge

A leading, global food & beverage manufacturer has been losing value share in the UK for the past 5 years despite out-promoting the market in terms of % volume sold on discount. In addition, one of the key retailers they collaborate with also promotes heavily, further eroding the category. Both the manufacturer and the retailer needed to identify ways to reduce the promotional intensity in the category.

The Results

The manufacturer saved ~£750K in promotion spend per week by switching promotions from depth to location (displays), while concurrently boosting the category and profitability.

Insight

Circana identified that 57% of the manufacturer’s promotions eroded the category. The Price and Trade Advantage™ analysis also identified that promotions on-shelf were not yielding any revenue and that promotions on-display were a lot more effective. Circana recommended a reduction in on-shelf promotions and an increase in on-display promotions, as well as consumer preferences toward BOGOF* and round £ (versus price cuts) promotion mechanics.