IRI Releases the IRI CPG Promotions Index
IRI, a Chicago-based company that offers innovative solutions and services for consumer, retail and media companies, has added 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 consumer packaged goods (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, according to IRI.
“COVID-19 has significantly disrupted consumer behavior and changed shoppers’ motivations — particularly in the CPG space,” said Krishnakumar 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.”
IRI said its weekly IRI CPG Promotions Index is highly accurate, drawing from IRI’s 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.