Evaluation of Promotion Effectiveness on Key Account Level

01.

Background

A manufacturer of products in a category that is strongly driven by promotion wants to evaluate the effectiveness of its promotions at the key account level.

02.

Research questions

  • What influence do price promotions have on sales?
  • Which impact does the placement in the leaflet have on sales?
  • What influence do seasonal peaks and trade advertising have?  
03.

Approach

Matching and analysis of IRI, Drotax and media data using the latest statistical approaches.

04.

Results

 

  • An above-average price discount no longer significantly increases supermarket sales
  • Promotions on the front page do not significantly increase sales for every key account
  • The manufacturer does not use the seasonal highlights so far or does not use them sufficiently, although the competition achieves up to 90% sales plus in the season
  • Based on the results, a key account specific promotion strategy was developed

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