Manufacturers can now understand which price-points and promotions resonate most with shoppers in £37bn impulse market
Bracknell, UK – 7 July 2016 – IRI
, a leading provider of FMCG market intelligence and predictive, actionable insight, has launched its Convenience Price & Promotion solution to help manufacturers to understand which price-points and promotions resonate most with shoppers in the convenience channel. Available in the convenience market for the first time, IRI’s new solution will offer a level and granularity of price and trade analytics and data, previously only available within the grocery channel.
Manufacturers currently spend around £7.5 billion on promotions annually within UK convenience – a market worth £37 billion and growing. While brands recognise huge opportunities in the market, they also encounter unique challenges, including managing price-marked packs, multi-buys and price sensitivity and elasticity.
Stuart Byron, Head of Impulse, IRI, comments: “Whilst manufacturers have had the luxury of being able to access robust and detailed data for many years in the grocery channel, they have never been able to fully understand or overcome some of the specific challenges that affect them in convenience, such as promotional compliance, which across this channel can be as low as 64%! With the convenience channel forecast to grow by £6.4 billion by 2020, they can no longer afford to operate blindly on such crucial sales levers as price and promotion strategy.
“We’ve been working hard to develop a product that is custom-made for the convenience channel, and we’re confident that there will be a big demand from manufacturers for a solution that can help them develop tailored pricing and promotions strategies that meet shoppers’ needs across different convenience channels. In grocery we consistently see manufacturers improve performance by 1-2% of turnover by optimising their promotional performance and we are confident the same can be achieved in this channel.”
Aimed at both existing IRI clients using Convenience Market Place, launched last year, and new clients, the new Price & Promotion solution will help manufacturers:
- Improve price decisions by understanding price sensitivity and interaction in each retailer
- Gain insights on promotional uplifts by SKU by retailer detailing levels of cannibalisation and promotional steal
- Distinguish which trade mechanics drive growth for the portfolio and set guidelines for the sales teams
- Improve decision-making and quantify sales opportunities via simulation of their own and competitor pricing and promotional strategies
IRI is a leading provider of big data, predictive analytics and forward-looking insights that help FMCG, OTC health care, retailers and media companies to grow. With the largest repository of purchase, media, social, causal and loyalty data, all integrated on an on-demand cloud-based technology platform, IRI guides over 5,000 clients globally in their quests to remain relentlessly relevant, capture market share, connect with consumers and deliver growth. www.IRIworldwide.com
. Follow IRI on Twitter
For further information please contact:
Amanda Hassall, Eureka Communications
Tel: +44 (0)1628 822741; Mob: +44 (0)7855 359889