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Pick & Mix promotions in fresh most effective in realising category growth

In recent years we have seen more and more Pick & Mix promotions in the Dutch supermarkets, in which the consumer can choose a combination of different products for a set price. In fresh categories in particular this promotion form in increasingly popular. Based on deep IRI fresh data the University of Tilburg researched the effectiveness of these Pick & Mix promotions within the supermarket. The conclusion: Pick & Mix promotions are the more successful promotions to clear the market and actually realise volume growth for the entire category.

Fruit and vegetable promotions bring category growth, meat promotions don't. In the research the effectiveness of price reductions, multiple item offers and Pick & Mix promotions were analysed for three fresh categories: vegetables, fruit and meat. They looked at the effect on the products that were on offer and the effect on the entire category. "For the meat category it showed that the promotions lead to an increase in volume of the products that are on offer, but none of the promotions researched led to a volume growth in the entire category of meat. The promotions only lead to a shift in purchasing moment and a shift within types of meat," according to Jessy Hommen who carried out the research at IRI for the University of Tilburg. Unlike meat Pick & Mix promotions with fruits and vegetables did lead to a volume growth for the total category.

The research also shows that the choice as well as the purchased amount influence the effectiveness. The highest effectiveness is reached with the lowest possible purchasing volume and as much choice as possible.

Source: IRI
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