Food promotions on the rise - with smart phone help
Six out of 10 shoppers (58%) said they were buying more of their food and groceries on promotion, revealed the latest IGD ShopperVista research. The figure compares with 40% in 2008.
About 53% were now using more money-off coupons and vouchers.
Nearly two-thirds (59%) said they planned to use more of them over the next six months to make savings on their grocery shopping.
Vouchers and promotions are most popular with younger shoppers and those with children, the IGD research suggested. About 75% of 18 to 24-year-olds are likely to use them compared with only 45% of those aged over 65s.
Joanne Denney-Finch, chief executive, IGD, said: “In these tough times, shoppers say promotions are one of the factors helping them decide where to shop: 71% of them tell us they are an important consideration.”
Smartphone or tablet
She said that the research indicated that shoppers are increasingly using websites on their home computers and even on their mobile phones. “Seven out of 10 (72% of) shoppers who own a smart phone or tablet, say they would like tailored promotions sent to their phone.”
The IGD research was supported by similar finding from the Institute of Promotional Marketing (IPM). It revealed that the number of consumers who have used their mobiles to find offers and deals or to download coupons and vouchers has risen by a third, up from 9% in June 2011 to 12% this June.
The research was carried out for the IPM by market research agency fast MAP in June.
Annie Swift, IPM chief executive told FoodManufacture.co.uk that the food industry had always been the “heartland” of promotional marketing.
Promotional marketing
“It is not surprising that manufacturers are using more promotions to hang onto customers or lure them in,” she said.
“All the research that we have shows an upward trend. The latest quarterly IPA Bellwether report shows that in most instances marketing spend is down, but promotional spend is up.”
Meanwhile, advertising on mobile devices rocketed by 157% last year to a record £203.2M, revealed the annual Internet Advertising Bureau (IAB) and PwC mobile advertising study.
Jon Mew, director of mobile and operations at the IAB, said earlier this year: “This study proves just how engrained mobiles have become within both brands’ and consumers’ day-today lives.”
What they say
Denney-Finch: “The stigma once associated with using coupons and vouchers is eroding as shoppers tell us they are using this type of promotion more as they seek to secure the best value. Retailers have been actively promoting coupons, which are easy to understand and use and have relatively few restrictions. Vouchers are more targeted now and can help shoppers, who have increased their planning before doing their grocery shopping.”
Mew: “With 26M smart phone owners now in the UK, the opportunities for brands to interact with consumers in a more innovative and relevant way are endless.”
