In-Store Promotions & HMR
It’s a no brainer that in-store promotions and specials go a long way in moving FMCG items off the shelves and into shoppers’ trolleys. But how can this translate into increased sales in the HMR department?
“In-store promotions remain an excellent way of attracting the shopper’s attention at the point of purchase,” says Natasha McClymont, MD of Fresh Brand Activation. “It is easier to sway consumers’ decisionmaking processes when they are there to touch and feel the product. You persuade the consumer to buy right now with promotions like competitions, tastings, discount coupons or even a complete brand experience where all five senses are engaged.”
Liza-Jane Webb, owner of Match Creative Resource Agency, who have done brand activations in the retail environment for clients such as Kellogg’s, McCain Frozen Foods, Freshpak and Nescafé, agrees.
“One-on-one engagements with consumers where you can promote brands and encourage trial, definitely impacts on sales,” she says. “Our promotions almost always have an incentive to purchase attached to it and are executed innovatively – these two factors are important in getting the consumers’ attention and driving sales. Our clients see great return on investment though our strategic and creative campaigns.”
“A well-executed in-store promotion using dedicated in-store presentation and display elements as a rule of thumb can increase sales 30–40% from benchmark,” Willem de Bruine, Business Director of Retail Display Solutions adds. “It is well established that between 50 and 70% of buying decisions are made in-store. In other words, brands that are actively promoted take advantage of this fact, whereas unpromoted brands do not.”
So while the consensus is that in-store promotions work for FMCG items, how can this translate to ready-made food items in your HMR unit, which are unbranded and in fact have no brand association except perhaps that of the retail store chain?
It seems that one way to actively promote ready-made food items is to associate them with certain branded products, which are used as ingredients in the making of the product. Creating an association with a trusted brand can go a long way. “If the brands used to make the products can improve the consumer’s attitude towards the ready-made food product and its perceived quality, then the association would benefit the ready-made food product,” says Liza-Jane.
“There is nothing nicer than seeing alovingly prepared dish, smelling the delicious aromas and then being informed about the top quality (branded) ingredients that have gone towards preparing this dish,” Willem confirms.
This could be activated by having a daily special in the HMR department – “brought to you by …” and displaying the (discounted?) ingredient in close proximity to the dish. In this way, the consumer could be encouraged to try the end product, and if they like it, buy the ingredient (or vice versa).
“Strategic partnerships and positive associations in the way of endorsements by credible collaborators will increase brand recognition and the likelihood of the consumer purchasing it,” says Liza- Jane. “You need to build brand equity for your brand and build the relationship with your consumers. Products can create brand equity by making them memorable, easily recognizable and superior in quality and reliability – in-store promotions is a platform to help build these customer relationships and make your products more enticing to them.”