A well-crafted promotion can significantly increase the average basket size and transaction value.
In this article, we will walk through brand marketing strategies for newly discounted products. The steps below will not only highlight the strategy being adopted but also the effectiveness in converting to sales.
Step 1: Review brands or retailers new discounts launch
Referring to ‘New In vs First Discount by Month’ analysis, we can identify the new-in and frequency of first discount launches, with the number of SKUs represented by the bar chart.
From here, refer to the ‘First Discount by Date’’ analysis card to understand the exact date a discount is launched. In this example, we can see that Zara conducts heavy discounts twice a year, in the month of June and December.
Note that you can also change the period interval to daily, weekly or monthly. The two grids with the darkest shade of blue indicate the days that had the highest number of SKUs launched on discount.
Clicking on the darkest grid, 18 June 2020, it shows 5,235 SKUs were launched on discount. To view the products that were put on discount, click through to the discount % range chart below. The image below is an example of products discounted between 30-39%.
Step 2: Review brand/retailers landing pages and newsletter
By clicking through to the grid corresponding to 18 June 2020 seen prior, in ‘Landing Pages’, seven updates were made to their website during this day. Scroll down to view the images of the updated landing pages.
Here you are able to see that the product page under ‘View All’ is led by discounted items along with the copy and images used.
To understand if there was any communication leading up to the launch of the sale, scan through updates a few days before. Similarly, it is advised to view updates after this date to understand if there were more updates relating to this sale.
The same can be done by analysing their newsletter strategy. Toggle to the ‘Newsletter’ tab in the Visual Merchandising module.
However, the newsletter did not focus on promotions but encouraged subscribers to download the Zara mobile app. Upon further investigation, we identified a newsletter sent on 15 June 2020, that featured information about the upcoming promotions along with the same visuals seen on the homepage.
In the current competitive retail landscape, it is important to keep oneself constantly updated on how others are developing and evolving their tactical promotion strategies to get a larger market share. Planning the right time and deploying the right strategies can alter consumer behaviour greatly, making competitor monitoring even more critical.
We 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.