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Mastering the Art of Retail Promotion Planning

Mastering the Art of Retail Promotion Planning-cover

Planning is a crucial part of the promotion management lifecycle. It serves as the foundation for promotion success since it is where retailers strategize on objectives and spend, and create the promotion. 

 

Throughout this blog, we’ll break down the basics of promotion planning, sharing benefits and practical tips and strategies that will support the retailer’s bottom line.

Table of Contents

1. What is promotion planning?

What is promotion planning-icon

The promotion management lifecycle involves many different business operations such as merchandising, marketing, vendors, supply chain, and store operations. A large portion of the lifecycle involves both marketing and merchants to plan campaigns, events, and of course, promotions.

The promotional planning phase requires merchants to develop strategic promotions that will assist in executing promotional campaigns, events, and activities.

Here are the following steps involved in promotion planning:

  1. Identifying the campaigns and events, and establishing the objectives and goals for each initiative
  2. Create tailored promotions for specific products in line with the objectives of each campaign or event, ensuring that the promotions align with the overall strategy
  3. Develop a comprehensive calendar that incorporates all campaigns, events, and corresponding promotions, including detailed information on the timing and duration of each initiative
  4. Choose the most effective promotional channels for each campaign or event, taking into consideration the target audience and the available resources. This may range from traditional in-store promotions or events to digital marketing initiatives such as social media campaigns or email marketing
  5. Establish key performance indicators (KPIs) to measure the success of each promotion, allowing retailers to track the effectiveness of their efforts and make necessary adjustments to optimize their results

2. Benefits of Promotion Planning

Benefits of Promotion Planning- icon

It’s no secret that planning is essential to effectively achieve goals and objectives. According to Harvard Business School, “This process is used to prioritize efforts, effectively allocate resources, align shareholders and employees on the organization’s goals, and ensure those goals are backed by data and sound reasoning.” 

For promotions in particular, here is how retailers can benefit from investing in promotional planning:

  • Strategic alignment: Promotion planning helps align promotional objectives with the overall marketing strategy of the organization. It ensures that promotional activities are consistent with the company’s mission, values, and goals.
  • Resource optimization: Promotion planning helps allocate resources more effectively. By carefully planning and budgeting for a campaign, companies can optimize their resources to achieve maximum impact.
  • Improved targeting: By conducting thorough research and forecasting during the planning phase, companies can better understand their target audience and create more effective promotional strategies that resonate with their intended audience.
  • Clear communication: Promotion planning helps ensure clear communication between team members involved in the promotional campaign. A well-structured plan outlines responsibilities, timelines, and expectations, reducing the risk of miscommunication or misunderstandings.

Why Is It Important to Have a Strategic Promotion Planning Model?

A smarter approach to promotion planning is necessary to increase the chances of success.

 

Recent studies have revealed that a staggering 72% of promotions in the retail industry fail to break even, despite significant investments in consulting and IT services. 

 

Leveraging advanced technologies such as AI can create more effective and targeted campaigns. A well-designed AI model can be customized to suit a retailer’s brand, product offerings, target audiences, and past promotional experiences, promising improved outcomes and increased profits from promotional events. By incorporating AI-powered solutions into their promotion planning, retailers can gain a competitive edge in the market and increase their chances of success.

3. Tips to succeed in your promotion planning phase

Tips to succeed in your promotion planning phase-icon
  • Adopt a customer-centric approach when establishing your objectives to ensure that your promotional activities meet the needs and expectations of your target audience.
  • Foster collaboration among key stakeholders, including merchandising, marketing, operations, and vendors, to achieve a cohesive workflow across your entire supply chain and enhance your chances of success.
  • Leveraging forecasting techniques during the planning phase can help you make more informed decisions and optimize your promotional strategies.
  • Utilizing advanced AI tools to centralize your promotional activities and content within a single platform can significantly boost efficiency and ROI, allowing you to maximize the impact of your campaigns.

4. Streamline Your Promotion Planning with Cognira's Promo Planner

promotion planner cognira

Cognira’s Promo Planner supports strategic planning with flexible and configurable workflows for managing promotions both internally and externally. Retailers are able to plan across the entire promotion lifecycle, effectively collaborate across departments, support unique workflows, and can integrate our Promo Planner into all up and downstream systems.

Retailers can expect to create effective campaigns, events, and promotions that drive traffic, generate leads, and increase sales.

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