It’s not news to CPG brands that the retail marketplace is crowded. Convincing customers to try a product takes equal parts strategy, data science, creativity, and planning.
That’s why CPG manufacturers should plan with special holidays in mind. During this time, consumers are more likely to purchase incrementally. For Easter, finding a way to draw attention to specific products is crucial to beating out competitors— after all, there are plenty of companies that will happily let their products take center stage as they compete for customer attention.
The good news is that there are many paths a CPG company can follow to take advantage of this special time of year.
Below are three things to keep in mind as you plan your holiday promotions:
Pricing is (Still) Key
While consumers may be willing to spend more for special holiday events and dinners, many will still be sensitive to pricing, especially if they’re choosing between similar products. One of the ways Wise Athena’s AI-driven solution is helpful during the holidays is the predictive capabilities it offers for CPG pricing, even as that pricing differs across retail stores and geographic locations. The analysis may be complex, but the goal is simple, and starts with this question: how will price encourage current customers to purchase more, and how will it entice potential customers to try your product for the first time? The right pricing solution can help you identify which products are likely to perform well with “buy one get one” deals, tiered discounts, or a simple percentage off for a limited period of time. Different SKUs benefit from specific pricing solutions, especially when customers are looking for very seasonal products, like Easter candy or small gifts for children.
Bundling is Big
Trade promotion with retail partners is just as important as a brand’s relationship to consumers, because even amazing pricing can’t overcome a lackluster point of sale or low product visibility in-store. Bundling can help answer the question: How can I provide value to both my retail partners and shoppers? Incentives like product bundling to certain retailers are a win-win, especially if geared towards holiday celebrations when shoppers may be more open to trying a new product alongside a more familiar one, or when they’re shopping for gifts in bulk. AI prediction software can offer insights into whether to offer retail partners discounted set bundles or allow shoppers to mix and match.
Don’t Be Afraid of Cross Promotion
Holidays like easter are a perfect time to work with complementary organizations to achieve shared goals, especially if it’s possible to share an end cap space or in-store display. One thing shoppers are on the lookout for during busy holiday shopping isn’t just price, it’s convenience. Take the time to think about which companies would make excellent cross-promotion partners. For example, condiments naturally sell with other popular holiday food items, like charcuterie, cheese, or honey. Cross promoting helps retail partners sell more products, and it makes life easier for shoppers who have decision fatigue and want to get in and out of a store quickly. By working as a team to offer incentives to retail partners, companies can make a stronger case than other competitive brands, and with the right price elasticity, can make a larger profit.
Wise Athena helps CPG companies optimize Pricing & Trade promotion strategies with A.I., giving clients insight into seasonal trends, fluctuating product demands, and daily changes resulting from market discrepancies. We’ve proven that we can increase sales and margins in less time, and with less effort, with data harmonization capabilities, high definition elasticity, and prediction certainty between 85-95%.
