Types of Retail Trade Promotions

Below are some of the common types of promotional tactics in retail/CPG analytics:

• Temporary Price Reduction (TPR): A straight price discount for a limited time (e.g., “$1 off” or “20% off” for two weeks). Usually, TPRs are reflected on shelf tags and possibly retailer systems, but not necessarily advertised in print – it’s a price promotion visible to any shopper who comes in. This is the simplest promo type, often funded by the brand to lower the retail price and encourage more sales.

• Feature & Display (F&D): A promotion where the product is given special placement and featured in retailer advertising. “Feature” typically means the product is in a retailer’s flyer or digital ad, often at a discount, and “Display” means the product has off-shelf secondary placement in the store (like an endcap or standalone display) during the promo. These are usually combined because an advertised special gets a display to ensure stock and visibility. F&Ds are high-impact but also high-cost (since you often have to fund the discount and sometimes pay slotting or co-op for the ad and displays). We’ll explain that getting a Feature in a major retailer’s weekly ad can dramatically raise awareness and sales , especially for a newer brand – it’s effectively a mini product spotlight.

• Display-Only (Secondary Display): In this case, the product gets additional placement in-store (like an off-shelf display, endcap, or special rack) but without being featured in the weekly ad. The display might or might not coincide with a price discount. Sometimes a product can be on display at full price (perhaps as part of a thematic or seasonal showcase), or with just in-store signage. Display-only promotions are great for visibility – they catch shoppers’ eyes and can drive impulse purchases or remind people about the product. They’re often used when the brand wants to push more product in high-traffic areas or when a retailer gives an opportunity for extra placement (even if not in print). The cost might involve free cases or display fees, but not as much as a full F&D.

(We might also briefly mention other types like Coupons or BOGO deals, but these can be considered variations of TPR for the purpose of this series. For example, “Buy One Get One 50% off” is essentially a 25% off per unit promotion for two units . Similarly, loyalty card discounts, etc., are forms of TPR. We won’t have separate playbooks for every variant, but the principles in TPR playbooks will largely apply.)

When to Use Each Strategy:

• TPR: Best for driving a quick increase in volume and moving inventory. Use TPRs tactically to correct velocity issues – e.g., if a product’s velocity is below target in a certain retailer despite good distribution, a short-term price cut can entice more buyers and boost trial. TPRs are also common for price-sensitive categories or during seasonal events to stay competitive. They are easier to execute frequently than F&D since they don’t require retailer ad space, but if overused, consumers may get trained to wait for a sale . So, we caution: use TPRs strategically (e.g., one week every 4-6 weeks, or around holidays) to avoid eroding your brand’s premium image or margins.

• Feature & Display: Use for big pushes – e.g., launching a new product, entering a new retailer, or a major seasonal promotion (like a Summer grilling feature if you sell condiments). Because F&D gives both awareness (feature) and impulse opportunity (display), it’s ideal for accelerating trial and penetration in the market. For mid-size brands, F&Ds might be limited to a few times a year due to cost – so plan them when you have a strong story (e.g., “#1 in category growth, now on sale!”) or when you need to meet a sales target for the quarter. Also, F&D can help secure retailer support – retailers love being able to advertise a good deal . We note to users: often, you have to negotiate these with the retailer’s buyer well in advance, and sometimes commit to funding a certain discount or providing display units. Save F&D for when you expect a significant payoff (and you have the inventory to support a big lift!).

• Display-Only: Great for boosting visibility when you may not want to deeply discount. For instance, if your product is new and fairly premium, you might not want to cut the price immediately, but a secondary display can increase trial by simply being seen by more shoppers. Display-only can also be used in between major promotions as a way to keep momentum: e.g., in a month you’re not running a TPR, you negotiate a small display in a few high-volume stores to keep sales up. Another use case is slow-moving SKUs – if one flavor or item isn’t selling as fast, an off-shelf display can draw attention to it and clear out inventory. We’ll mention that studies often show an incremental sales lift from displays even without ads, because of impulse purchasing (shoppers can’t buy what they don’t see, after all).

Key Metrics to Watch

No matter the promo type, certain metrics determine success. The overview will list these metrics, which will also be referenced in each playbook:

• Lift (%) and Incremental Sales: How much of a bump did the promotion generate over baseline? We define % Lift as (Promo sales – Baseline sales) / Baseline * 100% . Incremental sales is the extra units or dollars attributable to the promo . A promo that yields +50% lift is strong, but we also need to see the absolute incremental volume (selling 100 extra units vs 10,000 extra units are different stories). High lift with low absolute might mean a small base.

• Incrementality (Promo Efficiency): What % of the promo sales were truly incremental? If you sold 1000 units during promo and 700 would have sold anyway, incrementality is 30%. Higher is better – it means the promo mostly attracted new purchases, not just subsidized existing ones. This metric helps evaluate if the promo was worth it or if it just gave a discount to people who would buy regardless.

• Baseline Sales Post-Promo: Did velocity (baseline) improve, stay flat, or decline after the promo? For example, if a promotion brings new customers, ideally some will keep buying in subsequent weeks at full price, raising your baseline. If baseline stays the same or drops back, the promo might have had only temporary effects (or pulled forward sales). This is a bit longer-term, but important for evaluating if a promo had a lasting impact or just a blip.

• Promo Frequency, Duration, Depth: A reminder of these attributes – how often you promote, for how long, and how deep the discount is – as context for results. For example, a 50% off (deep depth) will usually yield more lift than a 10% off, but costs more margin. We encourage tracking these: Frequency (e.g., weeks per quarter on deal) and Average Discount. It helps ensure you’re not over-promoting (if every other week you’re on sale, that’s a red flag ).

• Trade ROI / Cost per Incremental Unit: If trade/internal cost data is available, you can analyze the profitability of your promotions, inclusive of all trade, retailer, variable scan-through costs associated with running promotional events in retail (lost margin, trade funds spent), comparing and ranking promotional tactics by their contribution to margin and bottomline profitability, rather than simply impact to topline volume.

• Competitive Metrics: If the brand has syndicated data, watch market share during the promo period (did you steal share while on promo?), and note competitors’ promo activity. For instance, a playbook might suggest checking in URMS if a competitor was also on deal in that period – maybe that dampened your results. Or if your promo lifted you to #1 share for the week, that’s a win to mention to retailers. This overview will remind users that using syndicated data to benchmark promo performance is powerful (e.g., your 30% lift might sound good, but if category average promo lift is 50%, there’s room to improve).

Feature & Display (F&D) Playbooks

Feature & Display promotions are big moves – often part of a broader marketing push. These playbooks focus on making the most of those high-visibility promotions and ensuring they truly pay off. Each scenario deals with planning, executing, and assessing F&D events.

Feature Playbooks

Use these playbooks guide when to secure circular/email features, which placements matter, and how to pair features with the right price point and timing. You’ll learn to:

• Prioritize placements (front-page vs. inside; digital vs. print) by historical lift.

• Combine features with price depth thresholds that produce incremental units, not subsidy.

• Sequence features with TPRs to amplify visibility while protecting margin.

• Track reach-driven lift distinct from pure price effects.

Display Playbooks

Use these playbooks to evaluate off-shelf visibility (endcaps, shippers) and right-size spend by store set and seasonality. You’ll learn to:

• Target doors where display elasticity is highest (avoiding low-yield placements).

• Coordinate display windows with feature calendars and TPR timing.

• Quantify “seeing is buying” effects vs. price-driven lift to allocate budget precisely.

• Monitor post-display decay and adjust cadence accordingly.