Promotions have become one of the most critical growth levers in FMCG, as inflation, consumer price sensitivity, and the rapid growth of private label continue to put pressure on branded manufacturers.

Most promotional strategies fail because companies focus only on short-term volume uplift, without clearly defining whether the objective is to grow market share, improve profitability, or expand the category.

Not all promotional volume is truly incremental, as a large share of uplift often comes from stockpiling, retailer switching, or cannibalisation within the same portfolio rather than genuine new demand.

Accurately measuring promotional ROI requires isolating true incremental volume, including the impact on penetration, purchase frequency, and basket size, instead of relying only on baseline sales comparisons.

Granular retailer-level and daily pricing data are essential to build effective promotional strategies, enabling companies to understand competitor mechanics, optimise discount depth, and tailor execution by retailer.

AI-powered analytics are transforming promotion management, allowing FMCG companies to optimise elasticity modelling, improve media and promo integration, and make smarter SKU, retailer, and investment decisions.