What are typical costs for promotional activity and marketing support at major UK supermarket retailers like Waitrose and Tesco, and how much do they actually impact sales velocity?
Supermarket marketing and promotional costs are significant but members report mixed ROI. Most agree that paid activity primarily benefits the retailer's P&L rather than driving meaningful sales uplift for brands.
**Costs:** - **Waitrose magazine features** — approximately £6k per placement - General promotional activity (display, in-store activation beyond price discounting) described as "a lot" with no standard pricing given
**Impact on sales velocity:** - **Magazine features** — Members report these generate awareness but don't meaningfully move the needle on sales - **Aisle-end displays and seasonal promo** — One member tested this at Tesco over Christmas and saw no uplift versus standard shelf placement with category promotion - **Shelf display presence** — Considered slightly more effective than magazine features because it puts product directly in front of consumers, though impact remains modest - **In-store activation** — Generates some awareness and helps retailer's P&L, but members sceptical of direct sales correlation
**Strategic considerations:** - Members use a simple ROI formula: (Rate of Sale × Gross Profit) + A&P Budget = listing decision - Paid promotional activity can be useful defensively to "buy your way out of a scary range review" rather than to drive growth - This pattern applies to both large and challenger brands
**Overall:** Members advise treating supermarket marketing as a cost of maintaining shelf space and retailer relationships rather than expecting direct sales acceleration. Results may vary significantly depending on category and seasonal timing.
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