Most shoppers ignore ‘tired, old’ promotions

‘Promotions’ have become increasingly irrelevant to a modernising and dynamic shopping environment, according to a G2/Grey Group 2011 Eye on Asia Retail study.

Accordingly, 62 per cent of Asian shoppers rarely base their decisions on promotions while 40 per cent of the remaining 38 per cent shop entirely based on their own whims.

“Traditional in-store promotion strategies aimed at maximising acquisitions are failing due to the fact that they only draw in existing customers instead of new ones,” the study revealed.

“It’s become time to re-think promotion strategies, design and execution”, said Sumit Pillai, strategic planning director at G2/Grey Group Viet Nam.

It was important to identify ‘shopper-types’ predominant in certain categories as ‘shopping mindsets’ determine response, he said, adding that promotions had lower impacts on ‘loyalty seekers’ as opposed to ‘value-seekers’.

Furthermore, promotion mechanics needed tailoring to suit specific mindsets. Lower valued but immediate redemption offers were more likely to work with value seekers instead of a ‘chance to win millions’ while the opposite worked with ‘whim indulgers’ who usually shop out of impulse rather than need.

“There is a lot more to promotions than just ‘discounts’ and ‘gifts’,” he said. — VNS

Tags: vietnam retail industry, Vietnam retail market

Posted by VBN on Aug 24 2011. Filed under Retail. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry