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Finance Academy: Consumers crave new and unforgettable experiences

Finance Academy: Consumers crave new and unforgettable experiences

Published: 12.3.2013

Due to the deepening crisis, consumers only buy the most essential basic commodities and look out for promotional discounts, which are reducing the income of trading companies, as we recently wrote in Finance. Darja Horvat, M.Sc., of Promostil d.o.o., an agency specializing in in-store product sales promotion, has revealed to us how to promote sales on store shelves.

What are the key activities of your company?

The key activities of our company are aimed at in-store product sales promotion. We have a good promotion team in the field, which stacks products on store shelves, organizes store shelves and positions products according to planograms and agreements with retailers. We achieve good results through tastings and product promotions at points of sale as well. We also provide training and consulting services in the field. In addition, our company is becoming more and more involved in supplying various promotional, or POP, materials (counters, stands, etc.) to manufacturers, suppliers and retailers, which most effectively rounds off the entire offer of in-store promotional sales services we provide to our clients.

Consumers are changing – the crisis has changed their habits significantly. How do you adapt your activities to changes?

Though end consumers are not the users of the services we provide, we nevertheless closely monitor their shopping habits. This is the only way for us to be able to advise our clients and ensure that the services we provide are top-quality, as effective as possible and bring about better sales results in addition to providing useful information.

How do you monitor changes in habits?

Every day, we are present at a large number of retail outlets of various categories and commodity groups – food as well as non-food. We are able to monitor very closely which types of products, price ranges, and quality levels are sold most often, and which store shelves most frequently require restocking. We also monitor the effectiveness of the sales activities used by the clients for which we stack products, organize shelves or carry out promotions at points of sale. A very important role is played by the information we obtain directly from consumers during promotions and tastings. All this and similar information is carefully recorded and analyzed. We can use this data at the end to establish trends and, of course, consumer preferences.

 

Consumers are becoming increasingly informed, with word of mouth still being the key factor in their behaviour. Where do you see opportunities for new ways of spreading positive consumer experiences? What would be your advice to a new company entering the market: how to succeed on store shelves?

The range of products on the market and store shelves is wide, and consumers are becoming increasingly informed, demanding and critical. Consumers crave new and unforgettable experiences. They want a high-quality product at a low price. It is therefore of key importance for every company entering and launching products onto the market to actually give consumers what they promise. If a company tries to mislead consumers in any way, they will sooner or later pay dearly for it.

There is more and more talk about so-called experiential marketing. Do you think Slovenian companies make sufficient use of it in their business activities? On one hand, it has its advantages, but on the other, it requires a financial investment, and we are living in a time marked by providence.

Experiential marketing is an efficient and affordable new marketing approach, which deals with the experiences of the consumer with a product, brand, etc. Slovenian companies should make more use of it in their business activities. The elements influencing the consumer experience in the store are atmosphere, music, lighting, colours, food, security and scent.

Orderly and full shelves, low prices and a large selection of products are not all that customers want. It is also important to provide a pleasant and relaxed shopping environment and ensure that consumers have positive experiences with the products, which is the focus of experiential marketing.

Orderly and full shelves, low prices and a large selection of products are not all that customers want. It is also important to provide a pleasant and relaxed shopping environment and ensure that consumers have positive experiences with the products, which is the focus of experiential marketing.

 

The interview was also published on the Finance Academy website: http://bit.ly/12MjPiD