This is a Quora question about the mechanism behind supermarkets’ special offers I was asked and my answer is as follows.
Retailer category managers have run discounts, coupons and special offers to help temporarily drive up sales and increase traffic to their store section.
They use them to promote new products or to reward existing buyers with the opportunity to purchase more units at a reduced price
Many promotions are run around holidays or events.
Vendors often want to run promotions to temporarily boost sales and/or increase new product trial use or reward existing buyers with the opportunity to purchase more units at a reduce price.
There is a data analysis component to using promotions and its use depends on how advanced it is for each retailer or vendor. At a basic level, it is analyzing past promotions and their results and using that data to plan future ones.
