A proper pricing strategy is very important for retailers, especially when it comes to promotions.

The majority of the price cut is covered by the producer of the promoted product, while some comes directly from the retailer’s margin. In addition, to maximize the effects, it is worth promoting important categories systematically. This is what promotional calendars are used for - to better manage promotion time and prices. When it comes to discount stores, due to the limited assortment, the case seems much simpler. But it turns out that this is not always the case, as you can see in the example of Lidl.

Setting RSP (Retail Shelf Price) for individual products, manufacturers and retailers usually take into account the prices of their similar products and that of the competition.

Another rule which allows them to cover additional costs is to raise the price of the product through the added value of the product itself. It can be the form of the product (e.g. a set of separately packed mini products) or packaging (e.g. a zip - lock that makes it possible to open and close of the product multiple times). We follow the principle that the shopper is ready to pay more, when he can see the benefit for himself.

In many countries the law regulates the sale of fresh, unpackaged bread.

In the video, we can see how Lidl managed this challenge in Greece.

In connection with the introduction of the next "Sunday trading ban", the shopping habits of Poles are also changing. The majority of purchasing behavior has shifted to Fridays and Saturdays. This effect was strengthened by discounters’ advertising campaigns, offering attractive Saturday offers, by means of which they managed to partially cover the sales losses from the lack of Sunday trading. However, this situation also generatesa problem in the form of frequent shortages of goods on the shelves, which has given rise to the continuing search for tradeoffs between delivery volumes and merchandise efficiency. In the film, you can see that 2 months ago Lidl lost sales due to OOS, so now part of the store is blocked by additional products waiting to be placed on the shelves. This is not an easy situation for either chains or shoppers.

Newsletters are still one of the largest cost items in the marketing budgets of many Retailers.

As part of cost optimization, firstly the amount is limited, and distribution to mailboxes is reduced, but Biedronka showed another, more interesting way to do it. On magazine POS stands in stores, they have placed multimedia screens that allow for smooth content management, adaptation to the time of day or even a quick counter-competition. By the way, even if the printed newsletters run out (reduction of circulation), as in the picture, customers continue to learn about promotions from digitized POS materials.