Reviewing competitor’s discounting and promotional strategies can be done via the Omnilytics Dashboard. It is important to review your competitor’s discounting and promotional strategies to better understand how other brands and retailers plan their product rollouts, along with maintaining your brand’s competitiveness in the market.
In this article, learn how to review a competitor’s discounting and promotional strategies with the Calendar module.
Step 1: Analyse the frequency of markdown and promotional launches
In this example, we have selected Zara in the UK market. Begin the analysis by observing the frequency and launch period of first-time discounts, along with the number of SKUs stated in the chart.
Based on the analysis, Zara’s discounting and promotional strategy is defined by the two distinct seasonal sale periods, in December ’19 and June ’20.
The Calendar module also allows you to identify when discounted products are launched. The First Discount by Date chart states the exact date of when the products enter a markdown on the retailer’s website. Based on your competitor’s discounting and promotional schedule, you can infer the best time to launch your own discount cycles.
In this example, it shows Zara discounted 1,818 SKUs for the first time on 29 November, in conjunction with Black Friday 2019, with the period of the sale lasting for two days. The following chart indicates the ranges of markdown by percentage, it shows 97% of these SKUs were discounted within the 40-49% off range.
It is important to note that the same retailer can have different discounting and promotional strategies for different markets. This was observed for Zara Singapore, where the Black Friday promotions began a week earlier, on 22 November 2019.
The varying shades of blue in the chart represent the number of SKUs is within each discount range. The darker the colour, the higher the number of SKUs.
For example, when looking at the First Discount by Date column, we can see that there are two boxes in deep blue, corresponding with Zara’s seasonal sales. This strategy is consistent for most retailers to focus purchases on full-priced items and only allocating specific periods for sales.
By constantly monitoring competitors’ campaign launches against own your brand’s sales strategy and stock performance, you can develop a more proactive tactical promotion strategy. A key consideration is to identify any new campaign launches activated out of the seasonal sales period by competitors.
With the steps above, you can confidently decide on when to perform seasonal markdowns and optimise discounts to get better sell-out and maximise sales. Hope you found this article helpful! If you have any questions or would like to explore the Omnilytics dashboard further, feel free to reach out to your respective Client Success Manager.