One question that is commonly asked is “are rebates effective in the current business environment?” After all, you have restaurants with reduced sales, reduced food orders, and distributors carrying less stock. With the industry in survival mode, can anyone be bothered with sending in an incentive? The answer is a resounding yes!
While manufacturers are getting more aggressive with incentive offers, IBI Data is currently seeing 2–4 times the traditional redemption on some offers. Incentives and price breaks are getting serious attention from cash-starved operators looking for any place they can save dollars. If there is a time where an incentive can make a difference, it is now.
Here are several other reasons rebates are playing a more prominent role in current marketing efforts:
- Better Distribution — The single biggest factor in rebate redemption is distribution. With diminished face time and fewer initiatives, sales representatives and brokers appear to be more aggressive in distributing offers and using them to build operator goodwill.
- Core Item Focus — While rebates often focus on new products, manufacturers are now focusing more on core items with greater distribution. The need to support new launches has been temporarily replaced with the need to move product. Operators have responded very positively to this shift resulting in both retaining business and gaining new customers.
- Evolving Menus — Operator menus are shifting due to market pressures. Slimmed-down menus with fewer ingredients are part of the current reality. While there are more losers than winners in this scenario, opportunities still exist as operators search for more versatile ingredients, single-serve options, and products with longer hold times. Filling those gaps and marketing aggressively can ensure your company comes out ahead with a robust customer base.
Interested in discussing rebate offers and how they can benefit your company? We are happy to talk with you and help determine if incentives can help your business. To talk, call IBI Data/Ryan Group at 877-424-8725 or fill out our contact us form.