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Promotion Redux
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How has the nature of consumer promotion changed in your company or clients since 1997? (Please check all that apply)
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| Responses |
Number of
Responses |
Percentage |
| Now must meet much more stringent ROI objectives
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43 |
24.3% |
| Now every promotion must carry the brand's message through the store to the point of sale
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39 |
22.0% |
| We consciously attempt to link consumer promotion with trade promotion to synergize our spending
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29 |
16.4% |
| Outstanding creative is no longer enough: Every promotion must now be grounded in either a carefully-researched consumer or shopper objective
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40 |
22.6% |
| Basically the same: our objective is simply to move big volume - all else is secondary
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18 |
10.2% |
| Other
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10 |
5.6% |
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Total
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177 |
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How has your Company's resource allocation to consumer promotion budgets changed since 1997?
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| Responses |
Number of
Responses |
Percentage |
| Much Higher
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17 |
12.7% |
| Somewhat Higher
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52 |
38.8% |
| Same
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28 |
20.9% |
| Somewhat Lower
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13 |
9.7% |
| Much Lower
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8 |
6.0% |
| Don't Know
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10 |
7.5% |
| Other
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6 |
4.5% |
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Total
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134 |
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How has your Company's resource allocation to consumer promotion staffing changed since 1997?
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| Responses |
Number of
Responses |
Percentage |
| Significantly more
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11 |
8.1% |
| Slightly more
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39 |
28.9% |
| Same
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39 |
28.9% |
| Slightly fewer
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23 |
17.0% |
| Significantly fewer
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14 |
10.4% |
| Don't Know
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7 |
5.2% |
| Other
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2 |
1.5% |
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Total
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135 |
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How many of the promotions that your company launches per year do you get really excited about vs. "business as usual"?
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| Responses |
Number of
Responses |
Percentage |
| All or almost all of them
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18 |
13.3% |
| About half of them
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25 |
18.5% |
| About 1/4 of them
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35 |
25.9% |
| One a year
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40 |
29.6% |
| One every couple of years
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10 |
7.4% |
| None
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3 |
2.2% |
| Other
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4 |
3.0% |
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Total
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135 |
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Which attribute is the most important determinant in your company on whether or not a promotion was successful?
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| Responses |
Number of
Responses |
Percentage |
| Moved volume
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48 |
35.3% |
| Came in within budget
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6 |
4.4% |
| Positive ROI
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52 |
38.2% |
| Increased brand awareness
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14 |
10.3% |
| Improved customer relations
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2 |
1.5% |
| Other
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14 |
10.3% |
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Total
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136 |
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How would you assess the quality and effectiveness of the promotions your company or agency has developed and executed over the past 8 years (since 1997)?
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| Responses |
Number of
Responses |
Percentage |
| Dramatically better
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28 |
20.7% |
| Better, but we have a long way to go
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79 |
58.5% |
| About the same
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16 |
11.9% |
| Worse
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6 |
4.4% |
| Much worse
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3 |
2.2% |
| Other
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3 |
2.2% |
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Total
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135 |
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How would you assess the efficiency of the promotions your company or agency have developed and executed over the past 8 years (since 1997)?
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| Responses |
Number of
Responses |
Percentage |
| Dramatically better
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30 |
22.1% |
| Better, but we have a long way to go
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74 |
54.4% |
| About the same
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18 |
13.2% |
| Worse
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8 |
5.9% |
| Much worse
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3 |
2.2% |
| Other
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3 |
2.2% |
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Total
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136 |
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How important is it to your company or clients to take retail considerations into account (for top accounts) during the promotion development process? (Pick one that represents the predominant feeling)
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| Responses |
Number of
Responses |
Percentage |
| Very important - we strive for maximum top retailer support on every promotion and routinely customize our promotions to achieve this objective
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50 |
37.6% |
| Important - we try to blend both brand and retailer objectives into every promotion on a general basis but leave it up to the Customer Marketing and/or Sales Department to tailor the promotion to our top retailers' needs and priorities
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61 |
45.9% |
| Unimportant - our first priority is to achieve brand consumer objectives: if this helps retailers achieve their own objectives simultaneously, so much the better - but we will not compromise or redirect the promotion to accomplish this
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14 |
10.5% |
| Not at all important - we believe that "Marketing stops at the door of the store" because the retailer's role in achieving our brand's objectives is peripheral at best and remains to be proven
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2 |
1.5% |
| Other
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6 |
4.5% |
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Total
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133 |
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How many of your top 20 retailers does your company or agency currently work with to develop completely customized promotions?
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| Responses |
Number of
Responses |
Percentage |
| 1-2
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13 |
9.5% |
| 3-5
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43 |
31.4% |
| 6-8
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21 |
15.3% |
| 9+
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30 |
21.9% |
| None - we recognize the importance of this but current budgets will not accommodate it
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12 |
8.8% |
| None - We really have no interest in this; we spend enough against the trade
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7 |
5.1% |
| Other
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11 |
8.0% |
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Total
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137 |
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When your company or agency develops promotions, what parties regularly have input to the development process? (Check all that apply)
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| Responses |
Number of
Responses |
Percentage |
| Brand groups
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57 |
20.7% |
| Agency
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47 |
17.1% |
| Customer Marketing
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52 |
18.9% |
| Category Management
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25 |
9.1% |
| Sales Department (i.e., Sales Teams, KAMs)
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48 |
17.5% |
| Retailers themselves
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33 |
12.0% |
| Other
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8 |
2.9% |
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Total
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275 |
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What does your company or client think of shopper marketing as a potentially productive promotion platform (shopper marketing defined as promoting to leverage various shopper need states)?
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| Responses |
Number of
Responses |
Percentage |
| Has potential and we are definitely pursuing it
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45 |
33.8% |
| Interesting concept but too many variables to be manageable or consistently effective
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38 |
28.6% |
| Takes resources to pursue that are beyond the reach of most companies, our own included
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25 |
18.8% |
| Another CPG industry fad
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12 |
9.0% |
| Other
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13 |
9.8% |
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Total
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133 |
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When your company or agency researches a promotion concept for your company's most important retailers, what type of research does it conduct? (Check all that apply)
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| Responses |
Number of
Responses |
Percentage |
| Consumer research
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46 |
24.9% |
| Account-specific consumer research
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40 |
21.6% |
| Shopper research
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28 |
15.1% |
| Retailer research
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28 |
15.1% |
| None of the above - we just do it!
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34 |
18.4% |
| Other
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11 |
5.9% |
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Total
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185 |
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Given your knowledge of the current CPG competitive environment, what is your assessment of the role that Consumer Promotion should play in your company's or client's overall marketing mix over the next five years?
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| Responses |
Number of
Responses |
Percentage |
| Extremely important - a top priority! Consumer promotion is the most important and potentially effective tool we have to help our Company differentiate in the eyes of our key retailers and help these retailers differentiate from one another on a non-price basis.
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52 |
38.2% |
| Important - more important than it is today in terms of the growing need to become better at target marketing, message integration and securing key retailer cooperation
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64 |
47.1% |
| Same as at present - There is nothing we see in the present competitive environment that will change our approach to consumer promotion or cause us to increase promotion budgets vs. other priorities
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12 |
8.8% |
| Less important - Spending trends on consumer promotion have been declining for the past 20 years and we see no reason that this trend should stabilize or reverse. CPG manufacturers as a whole are not dumb and have done this for a reason.
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3 |
2.2% |
| Other
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5 |
3.7% |
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Total
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136 |
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What do you view as the principal impediment in your company or clients to maximizing the potential of consumer promotion over the next 5 years?
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| Responses |
Number of
Responses |
Percentage |
| Budget constraints
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51 |
37.5% |
| Siloed approach
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46 |
33.8% |
| We're doing fine as as -- No need to change
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7 |
5.1% |
| Inconsistent and spotty retailer execution
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22 |
16.2% |
| Other
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10 |
7.4% |
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Total
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136 |
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Does your company regularly do post-promotion analyses of consumer promotion events against pre-defined objectives?
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| Responses |
Number of
Responses |
Percentage |
| Yes, always. Otherwise, we would never know how to make the next event better.
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41 |
30.6% |
| Yes, but only for customized events in our top retailers
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23 |
17.2% |
| Sometimes - depends on the importance and magnitude of the event
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56 |
41.8% |
| No - don't have the time or resources to devote to it. Besides, we're not going to NOT do consumer promotion even if 100% of our promotions fail to pay out
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14 |
10.4% |
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Total
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134 |
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In general, how well versed are your Company's or client's promotion development people with the objectives, strategies, tactics, shopper objectives and promotion protocols (dos and don'ts) of your company's key retailers?
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| Responses |
Number of
Responses |
Percentage |
| Very - Management makes this a priority and we are up-to-date most all of the time
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42 |
31.3% |
| Just enough to get along - What we know is a result of our own initiatives and unofficial Sales Department input. This requirement does not come from the top
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66 |
49.3% |
| Very little - Our job is to develop promotions. It is the Sales force's responsibility to tailor these promotions to our key accounts
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16 |
11.9% |
| This is our agency's job - we give them a creative brief and they make sure it happens.
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5 |
3.7% |
| Other
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5 |
3.7% |
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Total
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134 |
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How would you characterize your company's or client's current state of readiness to develop and execute consumer promotions that take all key factors into account - brand objectives, consumer objectives, retailer objectives and shopper objectives? (Pick one)
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| Responses |
Number of
Responses |
Percentage |
| Excellent - we're on top of it!
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13 |
9.8% |
| Very good- we're aware of what's needed and are working towards it
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51 |
38.6% |
| Average - we've got the brand and consumer covered but need work in understanding retail and shoppers
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56 |
42.4% |
| Not Applicable - we disagree with the premise that understanding retailers and their shoppers is important
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4 |
3.0% |
| Other
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8 |
6.1% |
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Total
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132 |
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My company size in (US Retail topline revenues)
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| Responses |
Number of
Responses |
Percentage |
| Less Than $500MM
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86 |
63.7% |
| $501MM - $999MM
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18 |
13.3% |
| $1B - $2B
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13 |
9.6% |
| $2B-$5B
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8 |
5.9% |
| $5B- $10B
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1 |
0.7% |
| $10B+
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9 |
6.7% |
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Total
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135 |
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| Responses |
Number of
Responses |
Percentage |
| Agency
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50 |
37.3% |
| Manufacturer
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32 |
23.9% |
| Service Industry
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7 |
5.2% |
| Consulting Firm
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19 |
14.2% |
| Marketing Services
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19 |
14.2% |
| Media
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4 |
3.0% |
| Academia
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0 |
0.0% |
| Not-For-Profit
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3 |
2.2% |
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Total
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134 |
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Number of years in marketing:
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| Responses |
Number of
Responses |
Percentage |
| More than 15
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81 |
59.6% |
| Ten to 15
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27 |
19.9% |
| Five to 10
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21 |
15.4% |
| Fewer than 5
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7 |
5.1% |
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Total
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136 |
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