Exhibit 27.1   Tiger beer in-store display & promotion.

The promoted sales volume for a majority of FMCG brands accounts for a very substantial proportion of their total sales. In New Zealand, for instance, which is one of the most heavily promoted markets in the world, according to Nielsen, nearly 60% of grocery purchases in 2012 were promoted products.

But how effective are these promotions? Considering that the proportion of on-promotion sales is so high, one would imagine that companies can barely afford not to understand their impact.

This chapter dwells on the different forms of trade and consumer promotions, the need to rationalize them, and the metrics and methods to evaluate them. It explains the basic approach to assessing promotions in terms of gain in volume, value and profit. It introduces the topic of market modelling for promotions evaluation, and outlines the basic design of models. These econometric based methods are covered in greater depth in the next chapter, Market Mix Modelling.


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Promotions Evaluation

Promotions Evaluation

Automated online solution for analysis of promotions.

What they SHOULD TEACH at Business Schools

What they SHOULD TEACH at Business Schools

Marketing has changed. More so in practical terms, and marketing education is lagging.

The fundamental change lies in the application of analytics and research. Every aspect of the marketing mix can be sensed, tracked and measured.

That does not mean that marketers need to become expert statisticians. We don't need to learn to develop marketing mix models or create perceptual maps. But we should be able to understand and interpret them.

MarketingMind helps. But the real challenge lies in developing expertise in the interpretation and the application of market intelligence.

The Destiny market simulator was developed in response to this challenge. Traversing business years within days, it imparts a concentrated dose of analytics-based strategic marketing experiences.

Dare to Play

Dare to Play

Like fighter pilots, marketers too can be trained with combat simulators that authentically reflect market realities.

But be careful. There are plenty of toys that masquerade as simulators.

Destiny is unique. It is an authentic FMCG (CPG) market simulator that accurately imitates the way consumers shop, and replicates the reports and information that marketers use at leading consumer marketing firms.

While in a classroom setting you are pitted against others, as an independent learner, you get to play against the computer. Either way you learn to implement effective marketing strategies, develop an understanding of what drives store choice and brand choice, and become proficient in the use of market knowledge and financial data for day-to-day business decisions.