How to choose the perfect promotion

    6. Bring it together: Getting the whole package right.

    While it’s clear that promotions do play an important role in influencing where customers shop, it’s not the number one influencer, according to Him!’s Jill Livesey, whose research shows that proximity to their businesses, availability of stock and reliability are just as important to retailers and caterers.

    Dhamecha’s Naren Chotai says: “We use data from previous promotions to forecast what we will need. And we make sure all our customers, regardless of size, can benefit,” he says, adding that working with reliable suppliers is also fundamental to product availability.

    Whether your business uses consistent low pricing, highs and lows or a bit of both, wholesalers that rely on the strength of their prices alone will do so at their peril.

    Dharma Bhamra, a buyer at World food specialist Wanis International Foods, says: “Price mechanics is not enough to draw sustainable footfall and create loyalty. It needs to be supported with a pleasant shopping experience, quick and helpful service, ease of shopping and, most importantly, range and availability.”

    Click here for customer and expert viewpoints on promotional strategies in wholesale.



      The impact of price promotions on sales has become ever more important to the extent that they often play a dominant role in profit generation and really drive consumer behaviour – which is exactly what they are designed to do, of course. However, the way promotions pump up sales volumes and have an impact on the sales of other lines puts great stress on the supply chain, especially on the forecasting and replenishment of fresh goods.

      The challenge lies in incorporating promotion forecasting and replenishment into the supply chain planning processes; this can typically be overcome by following seven best practice tips.

      1. Manage campaign information and forecast variables in the forecasting system;
      2. Include logistical information such as required presentation levels as well as preferred delivery dates for initial quantities including stock for presentation purposes;
      3. Let the system calculate the promotion forecast for consumer sales as well as the order forecast;
      4. Review the forecasts and compare with previous campaigns 
- and modify them, if needed;
      5. Collaborate with suppliers to ensure capacity and availability for fulfilment;
      6. Execute to plan and demand;
      7. Review success based on key metrics including operative supply chain KPIs and commercial KPIs

      Best practice suggests that by incorporating highly granular data into a new breed of supply chain management technology, new insights can be achieved which ultimately help drive better planned and executed promotions that maximise sales without negatively affecting sales of other product lines or profit margins.

      The more important promotions are for sales, the more important it is to include them in the forecasting and replenishment processes. Better promotion forecasting leads to better planned promotions using better data, which helps forecast subsequent campaigns more accurately.


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