1. BATTLE SCENES in STORES …..
France January 2018, Intermarche communicates a promotion of Nutella 950Gr for 1,41 € instead of 4,70 € % discount of Immediate discount
Reactions of consumers was massive, uncontrolled, violent. Media broadcast the event, politics commented and finally the authorities are investigating.
Communicated discounts, is not a matter of offering the cheapest deal, but more about dramatization of the promotions that impact the irrational part of consumers: this leads to the PRICE PERCEPTION.
We decided to investigate, across 8 countries, to discover how Communicated Discount (CODI) are used by Retailers and by Producers.
The results are fascinating:
There are markets where 85% of the promotions are supported with a CODI
More than 30 different mechanics have been created by marketing specialists
Discounts intensity from few % to more than 70%
Very fine tuned approach by category and type of SKU…
The summery of that study is now available for marketing teams (Industrials or Retailers); they have the possibility to track innovations, trends, and benchmarks.
The following pages display, as an example, KPI’s of the category drinks without alcohol, for 2017 vs 2016

2. FREQUENCY
Frequency is the ratio of promotions with a CODI vs all promotions in the category.
80%
The frequency of the CODI is not correlated with the size of the market. In Russia and in Slovenia 80% of the promotions in the category drinks w/o alcohol are supported by a discount.
Everywhere from year to year the share of supported promo is stable. (maybe not in Romania, 2018 will confirm if there is a trend)
In Hungary the CODI are less frequently used

3. INTENSITY
Intensity is the frequency distribution of CODI by values.
Communicated discount could be -3% or -60%. The significant frequencies are showing the most popular levels of discount per markets vs 2016
It clearly shows that from 2016 to 2017 this discounts levels are similar (intensity and frequency), except in Russia where it grew significantly from -20% to -35 % in one year.
Poland, Hungary, Slovenia and Slovakia have more complex structure of discount intensity, with 3 to 4 significant levels. When Serbia and Romania a mostly using the same discount value.
-25%
-20%
-50%
-15%
-30%
-10%
-33%
-35%
-50%
Slovenia is the market where very aggressive discounts (-50%) are significantly used in the category Drinks without alcohols.

4. CREATIVITY
There are more that 30 ways to communicate a discount to a costumers. Creativity measure the frequency of each of them.
An average of 13 are used in the category drinks without alcohols.
Marketers of Hungary are the most creative with 15 15

5. 4 COMPLEXITY Game & lottery Loyalty points Special Price Crossed Price
There are no limits to the commercial aggressiveness! A single promotion can cumulate 2, 3 or more discounts. This is what complexity shows.
COMPLEXITY 4
Crossed Price
Game & lottery
Loyalty points
Special Price
Four cumulated discount seen in Hungary. Slovakia, Poland and Hungary are use to combine many discount mechanisms.

6. LEARN MORE about Communicated Discount ?
STUDY SUMMERY
FREQUENCY
INTENSITY
80%
-50%
CREATIVITY
COMPLEXITY 15 5
Intermarche’s January promotions have been much in the news. But result in a significant gain of market share for the brand, on the P2 (from January 22 to February 18), the brand Intermarche gained 0.6 point of market share, 13.9% according to the latest survey of Kantar World panel. This extraordinary gain is explained by the success of operations "the 4 cheapest weeks in France", and the famous promotions on Nutella, Pampers diapers, or even Perrier, sold at -70%.
Kantar World panel summarized 2017 promotions. The promotion thus weighs 14.6% of French spending, or 11.8 billion euros (+ 3.5% year on year).
Above all, "the promotion contributed to at least 45% of the 2017 market share gains of the U, E Leclerc and Intermarche brands, with a gain of 0.7 points in cumulative market share for these 3 banners," said the panellist.
LEARN MORE about Communicated Discount ?
Frequency, Intensity, Creativity, Complexity: 4 insights that gave us a global view how Communicated discounts are used in the category drinks without Alcohol in 8 countries.
Now it time to go deeper in this analyse:
What says these Insights for waters? For carbonated drinks? For Juices? For energy drinks?
What are the retailer’s practices of using communicated discounts?
What are the brands the most creative? The most aggressive?
Others categories?
Your specific market or global?
Want to receive Discount Alerts as soon as they are published?
If your consider the Communicated Discount as a impacting factor of your promotions, take the advantage to learn more about them. Send me your brief by mail at .