This analysis takes a closer look at the promotional trends for confectionery items over the 2012 Easter period. Easter is always a time for heavy promotional activity in the chocolate category, but this year brought some shifts in promotional behaviour.
Shift in Promotional Strategies
In the weeks leading up to Easter 2012, there were 12% more promotions than in 2011, matching the 12% increase across all categories. In the week of Easter alone, 72% of Easter confectionery was on promotion – up from 62% last year. This increase was driven exclusively by price reduction promotions.
In 2011, the emphasis was firmly on Multibuy promotions to drive sales and volume, as shown in the chart below. In 2012, we saw a significant shift of promotional mechanics. (i.e. Price Reduction offers increased by 58%, while the amount of Multibuy promotions decreased by 11%, compared to the previous year).
This year, promotions were seen starting a week later than in 2011. The general activity both years shows a fairly constant promotional period before tailing off in the Easter week; however, 2012 saw a late increase in the number of promotions where last year saw a drop.
Although the number of promotions was fairly consistent this year, the promotional strategies of the highlighted brands show significant differences.
For example, Mars ran most of their promotions for shorter periods with deeper discounts while Lindt offered longer periods with more shallow discounts.