NDL Group: Research Indicates Prize Promotion Still Powerful At POS

Top Quote NDL Group comment on the latest figures regarding the continued effectiveness or Point of Sale promotions. End Quote
  • (1888PressRelease) February 07, 2012 - Just one fifth of all UK consumers now account for the majority of sales, according to new research. Almost 60% of product sales were made by just 20% of consumers, who regularly spend as much as 6 times the amount paid out by the remaining 80%. The findings have important implications for marketers and brands alike, who need to harness the purchasing power of all consumers to survive and thrive in today's economy.

    The study of 6,000 UK shoppers also identified particular niche products in which the same top spending 20% were likely to spend far more than the average 6 times that of other shoppers. Some were inevitably luxury items such as jewellery; others were simply everyday products such as groceries.

    The findings are likely to spark debate for those with a focus on the remaining 80% of shoppers. Contrary to visions of over-riding price sensitivity among this group, more than half of all the shoppers surveyed were still purchasing 'premium' or luxury items during the last year. And whilst those premium items may not have been high value, they have often cost more than rival or 'non-branded' alternatives at the checkout. Chocolate products were singled out as a case in point. Those brands which offered a good variety of products were succeeding if they gave shoppers reasons to purchase irrespective of pricing. Motivations could be functional, for example, the sizing or suitability as a gift purchase. Or it could be marketing which had created a solid association between a particular emotional response and the branded product. With the right formula, consumers were still prepared to spend more for particular brands, even when faced with less costly alternatives right at the point of sale. For those who are focusing on price-lead marketing, the findings mean this single approach could miss vital opportunities. The study proved a clear identification with particular brands will over-ride other dominant media messages advising consumers to spend less and shop only for perceived 'bargain buys'.

    "The research shows that most people are simply not sticking to a rigid 'economy shopping' approach at all. Consumers are not only looking at the price tag, they are taking in the total experience of the product. If there is a well-designed offer or promotion clearly visible at the point of sale it can have a huge influence on which item is finally purchased. We've shown that well designed and executed prize promotion strategies do have a remarkably strong influence. They need to simultaneously engage the audience with the brand, consistently re-enforce key communication messages, and create an ongoing excitement" said a spokesman from NDL prize management specialists.

    To speak to the NDL Group about any aspect of on prize promotion, gift experiences, and their prize management services, call the team on +44 (0)207 428 1212. Information including details of their client list can also be viewed at

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