IRI has launched its Convenience Price & Promotion solution to help manufacturers 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 claims to offer a level and granularity of price and trade analytics and data, previously only available within the grocery channel.
Manufacturers currently spend around £7.5bn on promotions annually within UK convenience – a market worth £37bn and growing. While brands recognise huge opportunities in the market, IRI said they also encounter unique challenges, including managing price-marked packs, multi-buys and price sensitivity and elasticity.
Stuart Byron, Head of Impulse, IRI, commented: “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 £6.4bn by 2020, they can no longer afford to operate blindly on such crucial sales levers as price and promotion.
“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 aims to 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
- In other words, true tailor-making to consumer-retailer need, in a channel where flying blind is no longer an option…