Price based promotions occupy the majority of the supermarket aisles but a recent survey carried out by Shoppercentric has identified that this is not the most important factor for consumers making shopping decisions.
The 1000 consumers were asked what they felt constituted to be good ‘value’ when shopping in supermarkets. 25% of those surveyed felt that value meant low price however 28% felt that the best value was if they got the most out the money they had planned to spend. Interestingly 21% of those surveyed felt that getting the best quality within their budget was good value. Price based promotions have dominated supermarket marketing strategies in the last few years since the recession but this survey suggests that retailers should rethink these type of strategies.
The survey also found that BOGOF offers (buy-one-get-one-free) are still the most popular amongst consumers with 76% of those surveyed voting this tool as the most attractive promotion. Money off items was also popular with 66% suggesting this is an important offer. However, both of these marketing tools have dropped in their popularity since the last survey carried out in 2009 by 3%. Coupons and vouchers popularity have increased from 47% up to 53% as have loyalty cards and free gifts.
Danielle Pinnington, Managing Director of Shoppercentric said: “Our research should be a much needed reminder to the retail industry, and brand manufacturers, that promotions aren’t the answer to the economic downturn. A sales spike is not a real change in behaviour. And a BOGOF is not always value for money. When shoppers are feeling the pinch it is important that retailers really understand their needs and align their offers to the new shopper requirements. Retailers that take a stand on a specific issue, such as quality or price, better differentiate themselves in shoppers’ minds – this is vital since shoppers have access to so many different retailers nowadays.”
There are many supermarkets for consumers to choose from and this survey highlights to retail marketers and insight managers that a mix of price, quality and quantity promotions is better than focusing on price based offers.
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