3 key metrics to reveal Promotional Strategy at your product category
Promotions are one of the most important mechanisms for attracting customers. Since most FMCG companies spend a big chunk of their budget on promotions, evaluating promotional effectiveness and revealing promotional strategy, is vital for every Brand.
Promotional Strategy is the game play and key principles that each brand follows in a specific product category or subcategory. In terms of promotional strategy, we evaluate the promotional performance of the brand in total, in contrast to promotions monitoring where we dig in at SKU level.
Pockee Market Intelligence has selected the 3 key metrics that can reveal promotional strategy followed by own and competitive brands at a specific category. Those metrics can give a 1st idea on how competitive (or not) our promotional plan is, providing data that justify a move in our brands' sales, market share and generally customer preference.
The number of net tailor-made activations one brand had at a specific time period at any media type (leaflet, TV or instore) and retailer. Example: One brand (with one or more products at a specific product category) is under promo during a 2-weeks leaflet. This is one event. One brand (with one or more products of a product category) is under promo during a 3days TVC. This is also one event.
Share of events (one brand's total events vs category's total events) at a specific product category, reveals how active was any brand in terms of promotions and which ones follow a more aggressive promotional plan.
The actual number of calendar days one brand was under promo at any media type and retailer. Example: a brand runs a promo in a 2-weeks leaflet (30 January 2022 to 12 February 2022). The number of net promodays is 14.
As in the events case, the share of promodays provides the comparative 'strength' of our plan.
Going on step further, we can also measure the weighted share of promodays. This is a metric that takes into consideration key parameters that affect the effectiveness of a promotion, like retailer and media type an offer is being displayed.
Depth of Deal
Depth of Deal (%DoD) goes beyond Events and Promodays, to display how 'attractive' the promotion was. It normalizes all types of promotions, to make them comparable on a % per item discount. Furthermore, %DoD can be measured on a weighted basis, if the brand run multiple activations with different level of discounts. So, if a brand was for 10 days on 30% and for 20days on 50%, the %DoD wouldn't be 40% but 43,3%.
Understanding promotional strategy is not so tough!
Either looking at the total product category or a specific subcategory, those 3 metrics are crucial to understand the promotional strategy followed by key competitors.
Using the right tools and monitoring key metrics every month, can make the above process smooth and trustworthy, saving time and effort. At Pockee Market Intelligence we provide the key Promotional metrics in our insightfull BI reports that can be 1 click away! Find out more here and Contact us to discuss how we can work together in this.
Read our latest blogpost Online promotion monitoring saves time at every business!