Supermarkets pitch increasingly on volume discounts

The Belgian supermarkets have conducted 1,5% less promotion campaigns the past half year, this was researched by the Dutch market research agency PCNData. There are great differences among the distributors. Although,one kind of “reduction”  is very much on the rise: the amount of “volume discounts” has increased with over a quarter. There is a clear strategy behind this, as it appears.

Practically all the chain stores have reduced the amount of reductions in comparison with the same term last year. But a notable exception is the “volume discount”, which has risen with 26%. “A lot of brand manufacturers use this type of campaigns to maintain the volumes and the market shares and to keep their factories going, certainly in times of crisis”, explains Ruben Boas of PCNData.

According to Mario Pandelaere, professor marketing (UGent), this is only half-truth: “It is proven that who buys larger purveyance, uses larger amounts and needs to return to the store quicker. Volume discounts crank up the consumption.

This summary was adapted from the following artcile: http://bit.ly/P0kEL2