What impact do other in-store promotional variables have? How does it affect your market share? What proportion of your sales are from promotional activities versus non-promotional? Which types of display are most effective? And which are ineffective? Which are the most effective competitor promotions? Are your promotional activities cost effective? Is your promotional budget optimally allocated?
Displays Generate Significant Lift, Over and Above Price Cut
Special in-store displays were found to add significant incremental volumes over and above price cut activities. The client’s brand, A, saw an average lift in sales of 120% when price promotion was supported by special displays. Competitor B benefitted by an even greater margin. The client was better able to determine the return on promotional investment and to fine tune plans for the coming year by allocating more funds to display activities in-store. The cost of the research was re-paid many times over by the subsequent improvement in profit from promotional activities. Where data is available, different types of in-store display or other promotional support in the shape of co-operative adverts, coupon redemption schemes, etc, can be input as separate variables for modelling.