Inefficiencies reduce promotional revenues

By Duncan Lawley

Brand owners promoting products in store need to carefully manage the implementation process a recent Servicemind study reveals.

Despite being charged high promotional fees for the extra exposure and placement in stores, some large retail chains fail to set up critical elements of agreed product campaigns. According to the study, which measures levels of implementation, up to 35% of participating stores  miss vital elements such as: the product not being displayed in the relevant promotion area, extra till point placement not in place, specially printed promotional signage missing, incorrect campaign prices and insufficient stock.

With the sales of many brands relying heavily on key promotion periods, the survey’s results will be a huge concern. A large part of their marketing budgets are spent securing valuable in store positions during the best trading periods. These campaigns can be instrumental in any brand’s achievement of yearly sales budgets.

Products promoted in chains with a large number of branches like supermarkets could be particularly at risk as recent financial pressures have meant that the product field sales teams are at a minimum and brands are more reliant on the individual stores staff to implement buying and promotional agreements.

The findings coincide with the launch of Servicemind’s new “Campaign CheckTM”. This new service product offers any retail chain or brand owner a fact based work tool designed to highlight missing campaign elements for immediate improvement on a store by store basis. Servicemind has over 10,000 mystery shoppers on it’s database and is able to mobilize them at short notice to check specifically on the pre agreed elements of any campaign.  The reports that Servicemind provide after only a few days of a campaign enable corrective measures to be taken quickly to preserve and maximize the sales potential. They can be used as a management tool for a field sales team and as a strong leverage document during the annual price and promotion negotiations.

Servicemind’s “you can’t manage what you can’t measure” philosophy is one shared by increasing numbers of brands and retailers as they utilize the new service in an effort to protect and maximize their promotional investments.