Wednesday June 30, 2010

Selling Strategies Target Unemployed

New York — Unemployment is another way to segment consumers to target specific price and promotion programs, according to The Nielsen Co.

The researcher finds areas with high unemployment are seeing the volume of items sold on promotion increasing at a greater rate than in low unemployment areas. Consumers in areas of high unemployment are also found to be more sensitive to changes in everyday prices.

Nielsen says when it comes to candy, more effective selling strategies to this segment include smaller temporary price reductions; a focus by manufacturers on brand building and consumer benefits; and maintaining promotional spending without much focus on price.