The first quarter of 2016 is already behind us. FOCUS Marketing Research has viewed and analyzed the 10 most successful retail products regarding promotional value for Q1 of this year. The results take into account discounters, supermarkets and warehouses. Our findings are based upon Action FOCUS marketing data concerning the amount of promotions, the Gross Advertising Value (GAV) and the Gross Reach (GR).
Similar to dominating the talk in most major retail magazines due to their design overhaul of their whole product line, Coca-Cola dominates the promotions in retail. Not only have they reached the highest GAV, but the GR and amount of promotions have also booked the highest results overall. Up until today, Coca Cola products have been promoted a staggering 86 times in this first quarter of the year. Runner-up is Heineken, whose sales records have increased by 10%, explicitly stating their worldwide presence once again. In the same period the successful beer-brand was on sale 68 times. In third place is Heineken’s ‘little’ sister, Amstel Bier, yet another famous beer-brand. Amstel follows its predecessor closely with 66 promotions and therefore attains the third highest GR and GAV in FMCG.
Interestingly enough, drinks take up 7 spots in the top 10. Fourth in line is Douwe Egberts Koffie Aroma Rood, followed by Nutricia Chocomel Chocodrink. An odd duck in the crowd, but not so odd in combination with its fellow top 10 participants, is Lays Chips. Altogether they were promoted 150 times. The top 10 are finalized with another beer brand, Grolsch, in sixth place, followed by coffee pads by Senseo, Hertog Jan Beer and Lipton Ice Tea.
With the barbecue-season on our doorstep we can expect that drinks will keep dominating the Dutch promotion market at discounters, supermarkets and warehouses in the second quarter of 2016. The bigger question is if Coca Cola will keep up the lead as clearly as they are doing this first quarter. We are also very curious if Heineken will keep increasing its promotional efforts and therefore find its way to Dutch homes even faster.
Brand performance in promotions & expectations
Looking at overall brand performance, Coca Cola is in 4th place behind Albert Heijns’ and Plus’ private labels and Unilevers’ Unox by several hundred counts of placements and quite a few percent in share of Gross Advertising Value. Yet Coca Cola has a very narrow product range compared to the other contenders. Keeping that in mind, their performance remains very impressive.
The fact that drinks are the most promoted items in this market speaks volumes about how Dutch people go shopping. Well-advertised and positioned drinks will easily outperform almost any other type of product. It would be interesting to see, if this will still be true in Q4 2016, when Coca Cola starts their famous Christmas campaigns again. While the weather is mild and mostly warm, it is unlikely, that drinks will be dethroned in the next two Quarters of 2016. Retailers will be well-advised to keep up those numbers and customers can look forward to continuous deep discounts on their favorite drinks throughout 2016.