Exploring the impact of retail promotion strategy on customer Essay

Exploring the impact of retail promotion strategy on customer behaviour - Essay ExampleFrom this research it is stimulate that the food retail manufacturing is very competitive in the UK with retailers adopting strategies to optimise store performance and increase loyalty. This level of competition is likely to accelerate with youthful headlines expressing concern over Tescos dominance of the food retail market. This is non a new concern as prior to these reports, the regulating standards body prevented Tesco from acquiring Safeways over fears that the industry would not be competitive. The food retail industry is also one which is characterised by tight profit margins as customers in this industry are constantly on the lookout for value for money in terms of prices offered. This has resulted in food retailers adopting various promotion strategies in a press out to control customer behaviour, and the bulk of the promotion strategies seem to have focussed on loyalty. Other promot ion strategies that have been used include blanket couponing and one-to-one marketing. These strategies have also relied on recording customer shopping behaviour, and the training collected is often used to ascertain what customers buy, the frequency with which they buy these products and when they buy it. This information is then used to give the customer coupons or vouchers that are specific to their frequent purchases. Some food retailers like Aldis and Lidls have not adopted any promotional strategies and instead they have gone for low pricing on the basis that it introduces stable pricing to customers.