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10 de Agosto de 2023
Effective Promotions: Analyze with Datawiz
Effective Promotions: Analyze with Datawiz


Datawiz expert



Objectives of making promotion

Promotions and loyalty

Merchandising in promotions

How to evaluate the effectiveness of promotion

Additional recommendations



It is impossible to do without marketing tools in food retail. The most popular method of attracting attention to certain products is promotion. To properly and effectively organize a promotion you need to take into account various aspects, and to understand the results you will need to delve into analytics.

sales in retail


Objectives of the promotion

Obviously, the most important purpose of running any promotion is profit improvement. At the same time, the promotion may cover some of the retailer's other demands.

  1. Increase in turnover. High indicators of products turnover are indicative of a successful sales strategy. However, with a very wide product range some SKUs are in the "blind spot" of both the customer and the retailer. In such cases, the manufacturer is particularly affected, so it is advisable to identify such positions and organize their "sale".
  2. Promote a new product. Promotions in retail are effective when the assortment matrix is changed. The introduction of new SKUs should be planned, otherwise new products will simply not be noticed, and this threatens to result in write-offs, frozen funds in the form of large balances in stock - all of these are losses. Promoting new products to familiarize customers can prevent such problems.
  3. Elimination of stock balances. If there is a surplus of products, it is worth promoting them additionally. 1+1" promotions, impressive percentage discounts, gifts for the number of units in the receipt always look favorable for the buyer.
  4. Communication with the client audience. No matter how creative a promotion is, sometimes a product simply becomes irrelevant to the customer. The results of a promotion may indicate existing problems with suppliers or manufacturers, as well as emphasize the need to adjust the product assortment.
  5. Promotion of seasonal products. During the high season competition between retailers for sales of certain products intensifies. At such times, margins are particularly affected, so a carefully prepared promotion will attract as many customers as possible.


Promotions are sometimes an effective method to combat dumping - underpricing by competitors to damage the reputation and profits of other companies.
Discounts and promotions directly affect the pricing policy and in the long term can "equalize" the products prices that have been in promotional sales.


Promotions and loyalty

Many people are accustomed to call customer loyalty their constant purchases, but this is not quite right. In those cases when customers purchase goods already after the promotion at the usual price, we can talk about a successful promo.
The consumer liked the product regardless of the price - that is true loyalty in retail.


Don't forget about compensatory analytics. If a promo is conducted with a reduction in the price of goods and the profitability, as a consequence, falls, the analytics should indicate an increase in the volume of sales in pieces. Only in this case the conducted promotion can be considered effective.


Merchandising in promotions

The visual component of a promotion plays no small role. Beautiful layout, bright conspicuous advertising banners, Sale signs is a task for the marketing department which should be solved with the help of both the analysis of previous promotions and the creativity of employees.

layout in food store


How to evaluate the promotion effectiveness 

The results of the conducted promotion must be analyzed. The most important indicators are:

  • turnover;
  • sales quantity;
  • average receipt;
  • SKU quantity in a receipt, etc.

There are several reports on the BI service, such as Stock Analysis and Promotion Indicators. With their help you can track the progress of the promotion, change and comparison of indicators during the promotion and during the normal trading period, etc.

The effectiveness and cost-effectiveness of a promotion should be judged solely on the basis of the chain's actual profit. It is always necessary to analyze previous promotions. In addition, it is necessary to plan your actions to prepare for the expected revenue, to calculate the stocks that should be increased comparing with normal sales of the promoted product.

promotions analytics in product retail


Additional recommendations for promotions

  • always articulate what the expectations are for a new promotion;
  • don't plan to accomplish all goals in 1 promotion;
  • watch the balance between attention to promotional items and the usual demand for more profitable items;
  • make sure you have effective tools to analyze the promotion.

The Datawiz BES platform has all the necessary services to create reports in different sections.


It is necessary to approach the organization and analysis of promotions particularly carefully, as it is one of the most popular methods of product promotion in the FMCG market. Taking into account the high competition in the fight for customers, attention to should be given to both the analytics of past promotions and the organization, advertising creatives of the current one.



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