The recovery may be at hand for the nation's retailers, but that's not stopping them from employing a range of promotional tactics, in partnership with brands, designed to lure shoppers into stores.  While last week's Commerce Department report on retail spending showed a 1.6% surge in retail sales, merchants are still cutting prices and running promotions.  "Promotions and things that drive traffic are still critically important," said Mark Snyder, chief marketing officer at Kmart. "I don't think we're out of the woods."

Coupons Are Vital

For CPG marketers, couponing remains a vital tool. The recession clearly drove an increase in coupon use.   Overall, CPG coupon redemption increased 23% in 2009, according to a study released last month by NCH Marketing Services, Inc., a Valassis company.  30% of shoppers said they used more coupons in 2009 than in the past, leading to $800 million more being saved with CPG coupons compared to the prior year.

Social Media in the Mix

Non-traditional marketing practices are also being put into play.  Social media is being used to keep retailers connected with their customers, which presents unique ways for brands to partner with retailers in line with these efforts.  Forrester Research, estimates about 70 percent of retailers are on Facebook or MySpace, and more than half are on Twitter.  "In a down economy, you really need to focus on your best customers, and this jumped out as a great way to connect with customers and build a little bit of a deeper relationship with them," said Mike Gatti, executive director of the Retail Advertising and Marketing Association, a division of the National Retail Federation.

Shopper Marketing's Rapid Growth

Shopper marketing has also become an essential practice.  Its rapid growth has been fueled in part by the dismal economy, but also by changing shopping habits.  More purchase decisions are being made in store.  Over 75 per cent of shoppers are entering the store without a detailed shopping list (according to a Booz & Co. study).  Five years ago that proportion was estimated at 60%. "There is a lot of room to better influence shoppers along the path to purchase, fueling growing investment in shopper marketing," Booz concluded.  Marketers have to be aware of what programs retailers utilize, and support, with their consumers.

In and Out of the Store

While in-store marketing draws a significant portion of promotional dollars, many marketers endeavor outside the store to influence shopping habits (see sidebar case study for one example).  Another example is The Kroger Co., who recently unfolded a new twist on Campbell's 36-year old cause-related Labels for Education program.  Now Kroger shoppers can register their loyalty card number at online and enroll their child's school in the Campbell's program.  Credits are then automatically applied to the participating school's account when an eligible purchase is made with the loyalty card. 

PromoAid

Evaluating which promotional options may be most effective and which supplier is best suited to execute can be a daunting challenge.  That's where PromoAid can help with its one-of-a-kind marketing database and related services.