All brands and retailers ideally want to have all their products sold at full price while also maintaining high sell-through rates. However, promotions are sometimes inevitable for promoting slow movers and to maintain a healthy inventory level.

Prior to doing promotions, brands and retailers need to plan strategically. Because having sporadic offers and discounting products at a ridiculously low price without analysis, will not only damage the profitability of your business, but can also jeopardize your brand image.

The first step is to analyse each of your products’ sell-through rate and to identify which item requires promotions in order to drive the sales. However, the sell-through rate alone is not sufficient to determine which products to promote. Another aspect to consider is the launching date or the age of the products. Once product lists are identified, consider which strategy best fit the market.

Promotion refers to activity to drive the sales, can it be temporary offers or marketing efforts to promote the brand.

There are two different methods for the promotions phase:-

  1. Tactical promotions
  2. Marketing promotions

Such promotions can be carried out to accelerate stagnant inventory. Tactical promotions involve internal strategizing to offer discounts on your slow-moving assortments. Marketing promotion focuses less on pricing and more on gaining awareness on your brand or even particular products to increase traffic. 

Tactical Promotions

Some examples of tactical promotion:-

Here are some important key steps prior to executing tactical promotion:-

  1. Review own brand poorsellers/slow performing categories (ie. sls & stk mix, wks cover)
  2. Identify competitor aged category with heavy inventory
  3. Validate performance of competitor risky category
  4. Identify similarities & differences of own brand and competitor slow performing categories
  5. Identify product assortment to launch promotion
  6. Formulate tactical promotion strategy


A thorough analysis and planning are crucial for a brand’s success before deciding to have promotions to reduce losses. While merchandisers are typically in charge of analysing numbers, markdowns and tactical promotions, the marketers will be the responsible marketing promotions. With that said, both parties have a common goal which is to clear stock without facing unnecessary losses.

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.

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