CHICAGO--(BUSINESS WIRE)--IRI®, a global leader in innovative solutions and services for consumer, retail and media companies, today announced the addition of the IRI CPG Promotions Index™ to its online COVID-19 Dashboard. The new tool includes two new standard metrics – Promotional Intensity and Promotional Depth – which measure relative changes in the volume of CPG merchandising activity and the depth of discounting on CPG goods, respectively, compared to the same period last year. The new index allows CPG manufacturers and retailers to understand the promotional landscape at the channel, category and subcategory levels on a weekly basis, providing deeply granular insights nearly in real time.
“COVID-19 has significantly disrupted consumer behavior and changed shoppers’ motivations – particularly in the CPG space,” said Dr. Krishnakumar (KK) S. Davey, president of Strategic Analytics for IRI. “Our research shows that looking ahead, pricing and promotions will be the key levers that drive market share growth. As a result, CPG manufacturers and retailers need accurate and real-time insight into the relative levels of promotional activity and discounting to understand what consumers are responding to, and how their own strategies compare to the market, in order to capture maximum value. IRI’s new solution leverages our proprietary algorithm and unparalleled point-of-sale data assets to deliver these critical insights in an accessible and standardized format.”
The weekly IRI CPG Promotions Index is highly accurate, drawing from IRI’s unparalleled access to real-time point-of-sale data, and is reported with deep granularity across grocery departments and aisles for large retail formats – total multi-outlet (which includes grocery, mass, drug, club and military channels) and total grocery. The new standard metric “Promotional Intensity” tracks the intensity of CPG merchandising activity, reflecting any incidence or combination of display promotions, features or temporary price reductions. The underlying measure of the Promotional Intensity metric is the proportion of value sales purchased on deal, indexed to a similar period a year ago. The Index also provides a standard metric called Promotional Depth for tracking promotional discount levels for CPG products. It measures weekly levels of discounting for items purchased on deal and is indexed to promotional discount levels a year ago. For this index, measurements above 100 indicate Promotional Intensity or Promotional Depth at levels above the same period last year, while measurements below 100 indicate decline compared to pre-COVID-19 levels.
Key insights revealed by the IRI CPG Promotional Index™ in recent weeks include:
- Overall Promotional Intensity in both the multi-outlet and grocery channels has been consistently below last year’s levels at the total CPG, total edible, total non-edible and category levels.
- In both the multi-outlet and grocery channels, the health category is the only category in which Promotional Depth has consistently been above last year’s levels every week since the week ending Sept. 13, 2020.
- Across channels, the refrigerated category had the lowest Promotional Intensity but the highest Promotional Depth of any edible category for the week ending Nov. 29, 2020.
- Promotional Depth for total non-edible items in the multi-outlet channel dipped below last year’s levels for the first time in eight weeks during the week ending November 29, 2020.
- Of all categories in the grocery channel, the beverage alcohol and beauty categories have consistently had the highest levels of Promotional Intensity, though Intensity continues to lag behind last year’s levels.
Davey continued, “This new Index enhances the power of our robust COVID-19 dashboard, which seeks to provide accessible, standardized and clear insights for CPG manufacturers and retailers to support their ability to continue to optimize their growth in uncharted territory. IRI remains committed to continuing to innovate and develop our suite of COVID-19 analytics and thought leadership, and to leveraging our expertise, data assets, advanced technology and industry-leading platform to support the CPG ecosystem.”
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IRI fundamentally believes that delivering differentiated growth for clients requires deep, highly integrated partnering with a variety of best-of-breed companies. As such, IRI works closely with a broad range of industry leaders across multiple industries and sectors to create innovative joint solutions, services and access to capabilities to help its clients more effectively collaborate and compete in their various markets and exceed their growth objectives. IRI is committed to its partnership philosophy and continues to actively enhance its open ecosystem of partners through alliances, joint ventures, acquisitions and affiliations. The IRI Partner Ecosystem includes such leading companies as 1010data, 84.51°, Adobe, The Boston Consulting Group, Comscore, Data Plus Math, Experian, GfK, Gigwalk, Google, Ipsos, Mastercard Advisors, MaxPoint, Omnicom, Oracle, Pinterest, Research Now, Simulmedia, SPINS, Survey Sampling International, Univision, Viant, Yieldbot and others.
IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG, OTC health care organizations, retailers, financial services and media companies grow their businesses. A confluence of major external events — a change in consumer buying habits, big data coming into its own, advanced analytics and personalized consumer activation — is leading to a seismic shift in drivers of success in all industries. With the largest repository of purchase, media, social, causal and loyalty data, all integrated on an on-demand, cloud-based technology platform, IRI is empowering the personalization revolution, helping to guide its more than 5,000 clients around the world in their quests to remain relentlessly relevant, capture market share, connect with consumers, collaborate with key constituents and deliver market-leading growth. For more information, visit www.iriworldwide.com.