Behind the promotional flyers

The disposable income of Italian consumers is literally collapsed. Ben is, therefore, any initiative to try to defend the purchasing power. And that is what is traditionally the promotion, which in times of crisis is growing, offering opportunities to buy at prices clashed. This phenomenon is so widespread as to pass almost unnoticed, compose a permanent economic environment in which we live. What is and it helps to defend the purchasing power of consumers? Throughout the offer to final consumers do not know, but for the consumer, therefore, for the channel consists of supermarkets and hypermarkets data are there and they are interesting.

The promotional pressure defined as the proportion of sales related to some form of promotion, normally price, is steadily increasing: in 2011 came to 26.4%; in 2007, the last year before the “double” crisis, was 4 points lower (Nielsen). If you consider yourself hypermarkets, who most need to create opportunities for attraction, the pressure is even higher and now a product is sold in three promotion. Contrary to what you may think, communicate to the consumer all this activity has a high cost. To let him know that a certain set of products is in fact promoting the insignia use the flyers.

Again, a presence which, in our boxes of letters, we are used to and there appear a humble (and sometimes annoying) communication tool at low cost. Not so, because this medium has apparently poor multipliers impressive. According to Nielsen, supermarkets and hypermarkets in 2011 more than 18,400 printed editions, with an average of 22 pages per issue (a volume that would gather all the flyers of consumer goods in 2011 would then about 400 000 pages), which promote products on average 215 each (then 4 million products reported, often the same and recurred periodically presented by the individual signs).

Print runs are also very high and it is estimated that the total number of “pieces” products is around 12 billion: a large sign, which launches a flyer (once a little less than a week), over its entire network must reach several million potential customers.

The large retailers to print and distribute flyers spent in 2011 around 1 billion euro, resources that are equal to a little less than 2% of their turnover. Finally, the value of the products sold on promotion is valued at around 14 billion euro, thanks to an average discount of around 30%, meant for consumers savings of 4.5 billion euro (about 180 euro per family) or, viewed from the offer, a discount that spread all over the turnover of the sector is worth approximately 8%. Adding the cost of printing and domiciliation of leaflets, the cost for the system is therefore in the order of 10% of turnover. And these are only the data of the consumer, for which information accurate. The total weight of the promotion of the whole range of consumer goods is unknown, but certainly important to a multiple of the values ​​listed above.

The entropy of this promotional mechanism is high. Spending a billion euro (40 euro per family) for vehicular 4.5 billion discounts hides obvious inefficiencies. Domiciliation of flyers is in fact very inaccurate and the percentage of those who do not reach their destination, or come to those not interested, is high. But today no one dares to radically change the procedures that have been stable over the years, because he fears that the consequences can be sold on very heavy.

Something new begins to emerge, however, thanks to the availability of new technologies. The planning of the domiciliation of the leaflets can be made based on the georeferencing of customers with loyalty cards, for which you can also check the actual redemption of the promotion (such as promotional products bought). Moreover, those that distribute flyers can be monitored through tools that allow georeferencing of the test delivery.

The leaflets can then be differentiated by area, by calibrating the promotion in relation to the penetration of the sign in the reference area (where is high, thanks to its proximity to the customer, it must not, where is low more). With the flyers can then be distributed discount coupons that allow you to check whether the consumer has actually used the flyer or instead has visited the store and only there took advantage of promotions in place.

Some signs are experimenting with virtual flyers, which are based on the availability of mobile phones with internet connection, through which at least reach customers who have a loyalty card. If these refinements will spread, the promotion will become increasingly tailored veicolarla will cost less and you can check its actual ability to activate the application, inserting flyer in the products that are most able to increase it.

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