Absolute guide to sales promotion in supermarkets for brands

Sales promotions in supermarkets: the keys to success for brands

Margot Bonhomme
November 21, 2023 - 7 min reading

In-store sales events are a great way to promote your product in your distribution network. There are a wide variety of activities available, from simple tastings to virtual reality gamification, product tests or competitions.

But successful sales events require careful preparation and, above all, an understanding of the success factors.

At Sidely, we decided to take a closer look at the subject. On the program: the secrets of successful animation, which arouses the curiosity and enthusiasm of point-of-sale customers, and encourages compulsive buying.

Successful sales promotion: the 4 preliminary steps

Before choosing which sales action to implement, several questions need to be asked to ensure its success.

1) Define your goals

Sales promotion is always justified by at least one performance objective: 

  • Activation: raising awareness of your new product, service or brand;
  • Highlight: revitalize sales of a product already listed by the distributor but whose sales have fallen off, or maintain sales levels as a generally "slow" period approaches; 
  • Acquisition: broaden your customer base by reaching a new target;
  • Loyalty: increase the frequency of purchases of your products versus those of competitors;
  • Etc.

Sales promotion is a suitable response to all these objectives, provided they are clearly defined. Remember, the right action can only be taken if the right objective is set.

In distribution, as in many other fields, a good objective is SMART: 

  • Specific
  • Measurable
  • Reachable
  • Realistic
  • Temporal

An objective that meets these criteria is the basis for an effective action. It enables you to determine your target, the points of sale to be animated, the time of year, and also the format of the event.

Finally, it's essential that your sales promotion is consistent with your company's marketing strategy and marketing plan. In fact, these tools have already enabled you to define target audiences, lines of communication, product positioning, pricing and communication channels to reach the target.

2) Know your target and its needs

There are two types of sales promotion in supermarkets: 

  1. Animations negotiated with central purchasing agencies ;
  2. Pirate animations.

In all cases, area managers have to convince active stores to host the animation.

This is known as the commitment period. It involves contacting and negotiating with sales outlets.

And to sell well, you need to know your target. In supermarkets, several criteria must be taken into account: 

  • Is it an active or inactive customer? 
  • Is this a new customer? 
  • Is this one of your top-selling stores? 
  • How long have you been working together? 

To maximize your chances of success, you should give priority to sales outlets that have recorded the highest sales volumes during previous promotions and events, or that show strong potential.

3) Plan your budget

To define the budget for your sales promotion in supermarkets, you will use 3 main methods: 

  1. ROI: by quantifying the gains you're aiming for through the operation, you can determine a percentage to allocate to the animation;
  2. Start by estimating the costs of an animation you have imagined, and add up the quotes and in-house costs;
  3. Start with what already exists: if you have an annual budget, part of which has already been used, or if your company's policy is to set a fixed amount per operation, then you'll need to design the animation on the basis of the available budget.

The first hypothesis corresponds to an ideal situation in which we spend to increase profits.

4) Monitor sales promotion results

All that's left is to observe and monitor the operation.

Two points need to be monitored: 

  1. Selling animation ;
  2. Animation results.

First of all, it's essential to assess whether the objectives defined by the marketing department, which often initiates sales events, are in line with performance in the field.

  • Did the sales team sell the animation? This evaluation involves monitoring sales activities, such as calls, field visits and animation set-ups.
  • Has the animation been installed in the right place? This can be assessed using POS and merchandising data.
  • Did the animation last the negotiated time? 
  • Etc.

When the promotion is set up, the sales rep enters the information in his CRM: promotion carried out, type of promotion, number of products.

In general, photos are taken by the sales staff to prove to the sales manager that the promotion has been carried out, and to pass on the best ones to the marketing department. If the order doesn't arrive, the salesperson negotiates with the store manager to recommend the merchandise originally planned.

Secondly, it's just as important to analyze the impact of sales animation on in-store sales, asking whether the store has really benefited from this initiative, and whether it has been well received by end consumers.

To do this, the sales person checks that the promotion is running smoothly at each point of sale: sales (checkouts), unsold items, breakage.

He can then check whether the promotion has led to an increase in recurring sales (VMH, VMM).

The salesperson can then study the potential of each point of sale:

  • The promotion went well and there was a sufficient quantity of product throughout the period ⇒ Quantity / outlet potential ratio achieved ;
  • The promotion went very well but the quantities were not sufficient until the end of the period ⇒ ratio quantity / potential of the point of sale too low ;
  • The promotion did not go well, quantities were too high. There are unsold items over the period ⇒ ratio quantity / potential of the point of sale too high.

To check whether the promotion has worked, it's important to focus on checkout figures and compare them with recurring sales (VMH, VMM) during the promotional period. If the promotion was effective, there should be a significant increase in sales. If, on the other hand, sales have not been as high as expected, it may be necessary to review the promotion strategy.

To achieve this, make sure that objectives and means are clearly understood by all stakeholders. Every member of staff involved in sales promotion needs to know his or her objectives (performance, budget, reporting, etc.).

For a multi-day operation, set up milestones. Ideally, of course, you'll need day-to-day insights to measure the increase in sales. And of course, make sure you have the indicators you need to make the right analyses. If you've managed to get your distributors' checkouts, the volumes should be clear. Without this, an increase in sell-in could be a signal, but this should be avoided as it is too open to interpretation.

The last option is to have the sales staff themselves record sales from the shelves. But do you have the store's usual sales figures to compare with?

As you can see, you need to use checkouts to accurately analyze the results of your sales events.

Optimizing sales in supermarkets in 2024

Sales promotion in supermarkets: the keys to success

Now that you have the objectives, the target, the budget and the follow-up method, you may have to adapt to the distributor's constraints: his sales plans, floor space, his own sales schedule... To convince your distributor to validate your sales promotion, you'll need to use the right network promotion techniques.

Whatever the constraints you have to adapt to, keep in mind the 3 dimensions that will determine the success of your event: 

  1. Experience
  2. Human
  3. Performance

Active sensory experience

It's hard to talk about sales promotion without mentioning sensorial marketing! This concept enables you to increase the impact of your event by appealing to the customer's 5 senses. As a result, they are more attracted to your event, and stay longer at your stand or with your sales staff. They're also more likely to give in to the temptation of a compulsive purchase.

It's a real experience for the consumer, and one that adds a great deal of value to the shopping experience! Here are just a few of the ideas we come across quite often: 

  • Create a joyful and playful moment by involving them in a creative workshop;
  • Attract customers with games adapted to the target, involving them physically while creating a challenge, stimulating their competitive spirit as with certain competitions;
  • Transport consumers out of their daily lives and into the brand's universe with a virtual reality headset;
  • Offer video games that will establish your brand identity in the buyer's mind.

commercial animation in supermarkets
Source & credit : Bryan Roberts

More than a simple tasting or product demonstration by a salesperson, these forms of animation engage the consumer, establishing a sensory and therefore lasting link with the brand.

Putting people at the heart of sales promotion

Convictions and responsible purchasing

A consumer buys to satisfy one or more needs, of various kinds. The more your product and brand meet these needs, the more you attract and retain customers. Know how to put all these assets to the fore during interactions at the event.

Sponsorship and ambassador program

In-store events can also be used to publicize other marketing initiatives that offer consumers the chance to become brand ambassadors. For example, you could offer them a sponsorship role, a reward for enabling others to buy the product, or for creating online content and generating feedback. And why not encourage them to take part in online events and competitions?

In-store animation is therefore also a point of contact for other forms of participation in the product's marketing strategy!

Sales performance at the heart of animation

Offer training and challenges to your sales force

Train your sales staff to handle the brand's product arguments. Direct contact gives you time to convince, but you still need to know your strengths!

But creating a link also means transforming a simple commercial interaction into a more lasting bond. Customers who identify with the brand's values, or are involved through an active, sensory experience, can become brand ambassadors. They will then naturally promote the brand around them.

Last but not least, the aim of an animation is to break down the static aspect of traditional communication. Your animators, in direct contact with consumers, can interact and deploy appropriate commercial seduction techniques! But to do this, you need a bit of technique: use the right tone of voice, smile, ask the right questions, and take an interest in the buyer. So you'll need to train your animators in discussion techniques that will create a link between the brand and its market, whether this involves values (corporate citizenship, ecology), tastes or simply the price or the offer.

We also advise you to encourage your area managers to organize in-store events, for example by offering a reward - financial or in kind - to the best salespeople.

Involve your distributor's sales team

As a salesperson or area manager, you've certainly made a point of nurturing your relationship with your distributors' salespeople. Your objective? To ensure that they keep your product in mind, know how to support the customer right up to the point of purchase, and help to promote it over the long term. 

Your distributors' sales reps can also be good entertainers. This is yet another way of strengthening their link with your brand and your brand's customers, and thus increasing the success of your sales event in supermarkets. As point-of-sale sales staff have a good knowledge of their customers, this will boost your product's sales performance over time.

But how do you keep track of the performance of your sales campaigns in supermarkets? Discover Sidely, the CRM for brands selling indirectly!

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