Promotion Effectiveness: How to Fix the 30 Percent of Value-Destroying Promotions

In the first two parts of their series on promotional effectiveness, Gawel Adamek and Lluis Bardet-Alvarez discussed promotion ROI and drivers of effective promotions. In part 3, they’ll take a closer look at value-destroying promotions – and more specifically, at strategies to identify and fix them.

In markets experiencing an economic recession and decreasing disposable income, companies often turn to promotions as a means of increasing revenue. As the number of promotions grows, consumers begin to expect one great deal after the other and become reluctant to purchase products at the regular shelf price. Intense competition for customers and revenue only results in margin dilution. For consumer goods companies, promotions offer a valuable opportunity to attract new customers, boost sales volumes, and generate awareness of new launches – as long as they consider the seven drivers of…