Archive for January, 2011

Promo strategies for seasonal products

January 11, 2011

If you have a seasonal product is it best to run promotions during the core selling season or during the down season? I’ve been analyzing this exact question for a customer this week and the data can make a case for both approaches. On the one hand it seems like running a promotion like a rebate or floor display during the key selling season makes sense. In that case the promotion is timed to when the consumer is likely to purchase your product. Or at least be thinking about it. On the other hand if the consumer is likely to purchase your product during the key selling season anyhow perhaps managing inventory and avoiding out of stock is the right strategy. If promotions are aimed at the non-core selling season when demand is historically low doesn’t that provide the opportunity to increase sales? It’s a difficult question and I’d be interested in hearing Brand Managers experiences and insights.

Heading in the right direction

January 5, 2011

Retail-sales consultant Retail Metrics Inc. predicts that the 30 national retailers it tracks will this week post a 3.4% gain in sales for December at stores open for at least a year. That is atop a 3% gain for December 2009.

Overall, the National Retail Federation trade group forecasts that retail sales in November and December increased by 3.3% this year to $451 billion.

The positive gains made this holiday season appear to be sustainable. In December 2010 and already in the New Year our customers are engaging us to help with detailed custom data analysis for line review preparation. This is always a good sign of an improving economy. It means business leaders are ready to compete. They are looking for opportunities and making sure any weaknesses are explained along with a plan for improvement. Underlying all of this is very careful point of sale data analysis so that plans and recommendations are fact based. We have been carefully analyzing products across retailers identifying trends in product sales, geographic trends, pricing variances, etc. It’s amazing what EDI 852 can tell you if you have a good database with several years of history. Dig into your EDI 852 and get ahead of your competition.