Promotions are tricky. They tend to be temporary and have an immediate impact on the volume sold. However, they may also have longer term impacts such as stocking up which could impact volume sold after the promotion period and increased trial which can result in changed attitudes towards the promoted brand.
Together with PepsiCo, we have run a pilot study where we modeled the market from two perspectives: past sales data as well as an ad hoc conjoint study in order to find a way to identify the best (new) promotions, and assess both their short term and their long term impact. Based on these results, we presented together at the MIE 2018.
Insights from the Short and Long Term Impact of Promotion
- The relevance of having insights into both short and long term impact of promotions to PepsiCo’s cereals business in the Netherlands
- The methodologies applied to model each type of impact
- First results of these models
- How PepsiCo used these results