Hemp Well Promotional Spend
The influence of promotional expenditures on retail brick-and-mortar sales, particularly within the pet supplement industry, is subject to many variables, much like any other sector or category. It is imperative to acknowledge that the efficacy of promotional investments hinges on the specific promotional approach, the target audience, and the competitive landscape. Here are several factors that Hemp Well employs to assess the promotional spending with our retail partners:
Nature of Promotion: The nature of the promotion plays a pivotal role in determining its impact. For instance, discounts, buy-one-get-one (BOGO) offers, loyalty programs, and limited-time deals can bolster foot traffic and sales in physical pet stores.
Customer Demographics: Gaining insights into the customer base of our retail partners is paramount. If your pet supply store or department caters to price-sensitive consumers, discounts and promotions may wield a more substantial influence. Conversely, for stores specializing in premium pet specialty products, promotions might not yield the same results.
Product Categories: The pet supplement industry encompasses an extensive array of products, ranging from bladder support to calming and discomfort categories. Promotions for specific product categories may garner greater consumer interest, particularly when aligned with seasonal or pet health trends.
Notably, calming products exhibit seasonality and rank as a leading supplement category. However, promotions may not always be a deciding factor, especially during peak seasons like the 4th of July, Halloween, and the year-end holiday season.
Competitive Environment: The competitive landscape within the hemp and general supplement market, particularly in the online marketplace, can significantly affect the impact of promotions. Brick-and-mortar retailers often carry a variety of hemp and CBD brands, with distinctions among their offerings. As Hemp Well gains recognition and visibility, retailers must remain competitive, especially with price-sensitive shoppers.
Timing: Timing holds immense importance. Promotions tied to holidays, events, or seasonal trends can prove highly effective. For instance, offering discounts on winter pet clothing in the fall or summer and pet toys in the spring can result in increased sales. However, this may not hold true in the widely fragmented, high-demand, and growing pet hemp/CBD supplement subcategory.
Advertising and Marketing: The manner in which promotions are promoted is paramount. Effective awareness advertising (email is most effective) and print marketing campaigns (direct mail flyers) can significantly enhance traffic to Hemp Well and your store. Sometimes, simply informing customers that you carry new and interesting products like Hemp Well can be equally effective without a specific promotion attached.
Customer Loyalty Programs: Loyalty programs, where customers earn rewards or discounts based on repeat purchases, can foster repeat visits to brick-and-mortar stores. We firmly believe in supporting loyal shoppers, contributing to our mutual success, and typically allocate an average of 0.5% spend across our various brick-and-mortar retailers.
Data Analysis: Retailers frequently employ data analytics to track the impact of promotions. By scrutinizing sales data before, during, and after promotions, they can refine their strategies for optimal effectiveness. At Hemp Well, we utilize our internal software to gauge the effectiveness of long-term retailer partnerships and determine marketing spend. Unlike competitors, Hemp Well emphasizes superior ingredients, uses more of them, and spends our profits to grow our brand and educate the market, resulting in higher production costs.
Online Presence: In today's digital age, maintaining an online presence with e-commerce capabilities can complement brick-and-mortar sales. Promotions can be advertised online to drive traffic to physical stores. This holds especially true with new and exciting sub-categories like hemp and CBD products. However, retailers are skittish to offer online sales of CBD products due to merchant processing costs and online advertising policy concerns.
In assessing the impact of Hemp Well's promotional investment in your retail store, it's crucial to engage in continuous analysis, explore a variety of promotional strategies, and consider the factors discussed earlier. Moreover, it's important to acknowledge that industry benchmarks and case studies within the pet products sector may not always provide definitive insights into the effects of promotional approaches on brick-and-mortar sales across all categories. As the retail landscape evolves in this dynamic era, we are excited about our continued collaboration with forward-thinking retail buyers to shape the future together.
Best Selling by unit sales / Where sold
|Food Drug Mass|
|Chewy / Amazon|