Skip to main content

How hard is it to promote?

How hard: it depends how big you are and how much you know about your customers. For a large multiple, a huge amount of science goes into developing deals for their shoppers. They try to deliver promotions that are timely and targeted. They have complex buying, marketing and merchandising operations to keep synchronised.

For a local shop, you can see the customer you want to focus on and you can ask them what they are looking for. Next you can source the deal and then deliver it on time in your one location.

However, if you want to maximise the investment of suppliers in your promotion, then you need to impose greater discipline. If you want to earn overrider payments, you have to take promotions designed for the average shopper, not your own customers.

If you choose to step up a level, then you need to improve your own disciplines. The first thing you need to do is tell yourself that you will have regular promotions. Perhaps 13 times a year, perhaps more. Some could be obvious (Christmas), some could be opportune (a local festival), some could be things that you are passionate about (a charitable cause).

After setting your timetable, you then need to consider what success looks like for each promotion. You need to know what will make them worthwhile: more customers, more sales, more profit, new ranges, new services etc.

Once this is in place, then you will start to think about planning ahead so you can make the most of the opportunity. If you want support, then you need to keep track of previous results, to give partners confidence. From this you will find out what type of merchandising works for your shoppers and what kind of deals.

Armed with this knowledge you will be talking to your suppliers about how they can design promotions that will work for your customers. This is where it may get interesting as they will find that getting a good deal in front of your shoppers will demand the sort of attention to detail that the major multiples need to make.

Its may sound like a long road but it should be worthwhile to travel it.

Comments

Popular posts from this blog

Three secrets of great merchandising

Look at the ceiling and top wall of this McDonalds restaurant. There is a picture of two good looking healthy people having fun and some bright primary colours. Ask yourself what is the purpose of this picture? In the latest issue of Retail Newsagent in a feature on merchandising, Andrew Knight of RI tells its independent readers that they need to think about using sharp pictures of non-packaged products linked to people consuming goods. Perhaps this has been taken to the next level by the fast food chain - that is selling the feeling of being happy and healthy rather than the products. A second, related tip from the same feature is made by most contributors - it is vital to keep windows clean and clear of clutter. "I believe that less is more," says Roli Ranger, a retailer from Ascot, Berkshire. He has posters for promotions in between the windows that are regularly updated and discreet signs in the windows. Third, a highly visible well-stocked promotion at the entranc...

Busy street, empty shop, missed profits

True in part to my New Year resolution, I held a business meeting in an independent coffee shop today just next door to a Starbucks. The cafe was presented well and four staff were busy preparing for the lunchtime rush, at 11am. As my guests were late, I had a half hour overview of footfall on the street outside and in the restaurant. Six customers. Barely enough to form the queue in Starbucks or Pret-a-Manger just down the road. Plus one Italian girl who dropped off her CV. Some people stopped to look at the posters in the window and moved on. The owners seemed quite happy. When I left just after 1215, they were doing brisk trade. However, I have the impression that the business is not working hard enough. It could easily have managed 120 customers between 11 and 12, instead of 12. This is lost profit as the fixed overheads and staff costs are already in place. The owners are clearly busy - perhaps too busy to take time to look at the potential that their cafe has. What shou...

Sticks and stones do hurt

My 17 year-old son returned from a rock festival this week wearing a wristband proudly declaring him 0ver 18. He explained how easy it had been to use someone else's ID to get the identification and said it was ironic that he had not needed to show the over 18 band when buying alcohol. Today, Scottish retailer Abdul Qadar is complaining that public authorities are asking people to lie about their age when making test purchases. What trading standards officers may be forgetting is that the fact that retailers invest in a business premises and trade consistently from it make their job much, much easier. The alternative, a world of markets and itinerant traders, will be far harder to police. Mr Qadar's sense of injustice is fair. Those retailers, like Mr Qadar, who value their investment will seek to trade legally and will not sell alcohol to people under the age of 18. Asking children to lie about their age to local traders is a slander on all retailers.