There has been a 12 per cent decrease in the number of promotions in the Baby category across the Top 5 supermarkets over the last year. Brand View investigates what promotional mechanics are the cause and the strategy across each retailer.
There has been a significant decrease in the number of Save promotional mechanics this year, in particular Save Amount deals have decreased by 11 per cent across the retailers. The highest increases have been in Save a Third and Buy 3 get Cheapest Free mechanics. Save a Third is predominantly used by Sainsbury’s whereas Tesco is the main user of Buy 3 get Cheapest Free.
There has been a decrease in the number of promotions this year in Morrisons, Tesco and Waitrose in the Baby category. This is due to a drop in the number of Save Amount promotional mechanics used in these retailers. Asda and Sainsbury’s have both increased total promotional activity by 5 per cent and 12 per cent respectively. With the highest overall decrease, at 55 per cent, Morrisons is the only retailer to also see a drop in the number of Multibuy promotions used. The remaining four retailers have all increased the number of Multibuy promotions used.
Despite a fall in the total number of promotions this year, the average depth of cut remains relatively stable at 27 per cent. Although Morrisons has significantly reduced its number of promotions, the average depth of cut has increased. Asda has consistently offered a lower depth of cut, which may be due to its EDLP strategy. Last year Sainsbury’s offered the highest depth of cut, but this has now fallen and Tesco stands as the highest.
When looking at the number of promotions by retailer over time, Sainsbury’s Baby events are clearly visible three times each year. When not running these Baby events, Sainsbury’s runs around 100-150 promotions each week, but during the Baby events this increases significantly to around 350 products, giving them vastly more promotions than any other retailer in that week. Despite Tesco and Waitrose showing few peaks, they display a much more evenly distributed promotional timeline, with less prominent, more frequent promotions.
When looking at the length of promotion against the depth of cut, we can see that the retailers have different strategies. Due to their baby events, Sainsbury’s has the shortest promotions. Last year they also offered the deepest discount, but this has since lowered. Asda tends to run long, shallow promotions which change little year on year. Tesco and Waitrose have both seen opposite transitions, Tesco running longer, deeper promotions, and Waitrose shorter, shallower promotions.