Effective promotional planning is based on a strong foundation and knowing what your co-op wants to accomplish. A strong promotional plan will leverage the strengths and resources of the team to create a promotion that benefits all stakeholders — shoppers, vendors, staff, your co-op and your community. Here are some examples, ideas, tools and inspiration for creating an effective promotional plan.

It’s no secret that discounted prices can attract shoppers and increase movement. However, a good promotion is not just about discounted prices — it takes planning and coordination to create a successful promotion. Focus on meaningful promotions that create a connection between the shopper and your co-op. Creating a connection with the shopper can be your promotions differentiator. For instance, your competitor might be able to offer a better deal on LaCroix or a have space to build a bigger case stack of chips, but you have the power to plan promotions that will connect shoppers to their food. Whether they’re learning the story of a local producer or seeing their next great meal take shape right there in the store, those are the promotions shoppers remember and those memorable promos are what shape consumer behaviors.

The goal to successful promotions planning is to create a vision, represent the shopper perspective, ask the right questions to get your in-store collaborators on board, and connect the dots to storewide themes. The purpose is to highlight the products, deals and events that support your brand in a fun, engaging way that entices new shoppers to visit the store and existing shoppers to buy more of their groceries at the co-op. Promotional strategies include (but are not limited to) coupons, events, sampling, special displays, special signage, contests/giveaways, recipes/education, and exclusive/limited time products — all are supported by a variety of marketing communications.

Often, the measure of a promotion’s success will depend on the goal. Examples of things to track when planning a promotion include:

• Product sales or lift
• Average basket size
• Customer counts
• Event attendance (did it drive shopping?)
• CX Survey results

Understand department managers’ margin strategies for their promotional items and how they intend to execute in a way that will still grow margin dollars, percent, or both. Think about the sales lift needed to achieve desired margin results. Sometimes it’s easy to become so fixated on margin percentage that you don’t set compelling promo prices. A calculator, like this one, can help team members understand the sales lift needed to achieve their desired margin results. One critical component of promotions, however, is making sure that promotional investments — like margin, labor, etc. — are actually driving traffic into the store.

If major promotional plans are new for your co-op or the staff whose buy-in is needed to create great promotions, seasonality makes a great entry point to thematic promotional planning.

For example, if citrus season is the highlight of the year at your co-op, start with that. Then, try to involve every department. Share ownership and incorporate ideas. In this instance, grocery can put together an endcap of fun citrusy beverages. Your meat department could test out a citrus marinade.

Promotions Tips

Make the co-op a destination when you turn your promotions into an event. When you build out a calendar of major promo events, you’re strengthening your co-op’s position as a destination shop. Many co-ops have developed a reputation as the go-to place to get plant starters and seedlings each spring.

Make your promotions don’t-miss events. Identify one outcome: creating a special experience in the store or reinforcing positive price perception and stick to it! A tight focus can become a helpful litmus test in planning. Does this reinforce a positive price perception? If not, save the idea for later.

Know your audience! Make sure you are up-to date on what’s going on in your community.

Going all-in on a brand can create a memorable storewide promotion experience, particularly with brands that have products in multiple categories.

Put yourself in the shoppers’ shoes. How can you anticipate shopper needs? If you were coming to the co-op to buy groceries for your first summer grill-out, what would make that shop special?

And finally, always remember to document results, so you can reference them in the future!

Below are several resources to consult or things consider that can aid you in the development of a promotion:

• NCG’s Promo Playbook (themes, holidays, Co+op Deals)
• Last year’s sales data and notes
• Weather and season
• Current events and trends
• Community happenings, events and celebrations
• What does the customer need/want?
• What are the co-op’s business goals?

See last week’s On Common Ground article on building promotional teams here. You can find additional resources and templates for promotions planning here. You can also view a presentation from Marketing Matters 2021: Effective Promotion Planning on Co+op U.

Contributor: Molly Baeverstad, Marketing Services Manager