Promotion Problem: They’re Not Buying It

IRI report finds ‘recycled’ CPG merchandising efforts are less effective
frozen food

Cloned, Doomed Practices

A lack of discipline is one bugaboo dragging down marketers, and so is the trend behind the implementation of a “one-size-fits-all-channel” merchandising plan.

“Marketers need to think about their products and ask, are they stock-up products or fill-in products? What is the trip mission and the mindset of consumers, and establish the right strategies for every retailer, from Target to Kroger,” Viamari told Convenience Store Products. 

Promotional blueprints in convenience stores have to be built on the idea of impulse purchasing, Viamari said. The in-store promotion might be configured where customers will pull the trigger and buy the bag of chips over the candy bar thanks to the precision of a price-pack architecture (PPA) strategy. “This will deliver surgically executed competitive strategies and win big,” Viamari said.  

In some cases, promotional dollars are assigned to brands that ultimately don't respond to the investments put behind them. Asked how marketers can correct it, Viamari said they need to discard the one-size-fits-all approach: “Reassess the whole process—address which brands are responsive to EDLP (everyday low pricing) and which ones respond to trade promotions. They can’t just recycle what they’ve always done as the sales lift continues going down.”

Emphasizing a brand’s core attributes also fits into the overall strategy—what qualities of the brand resonate strongest with consumers? Viamari cited SkinnyPop Popcorn as one brand that “does a nice job conveying the benefits of its brand—all while selling at a significant premium.”

To merchandise for growth and reap maximum activation, Viamari encourages companies accustomed to doing business a certain way to “take a leap of faith,” which might mean “blowing up your system and starting over again.”