Sales Decomposition and Due-To Analysis — Market Response Modelling


Exhibit 20.16   Decomposition provides understanding of the contribution of each element in the promo mix.

Exhibit 20.17   Due-to analysis for a brand.

Market Mix Models decompose sales into the baseline and each of the factors driving sales. For instance, Exhibit 20.16, which pertains to a promotions evaluation analysis, depicts the incremental gains arising from price discounts, banded packs, displays, cooperative advertising and competitive effects.

'Due-to' analysis, such as the one shown in Exhibit 20.17, reveals the impact of each element of the marketing mix on the year-on-year sales. The chart reveals the incremental shifts in volume due to causal factors as well as the shifts in base volume due to factors such as regular price, advertising and distribution.

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