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:
- Stocking up, accelerated or delayed purchase behavior impact volume sold the period right after the promotion period
- Increased trial, product experience and exposure to (increased) promotional activity can result in changed attitudes towards the promoted brand – both positive and negative – as well as changed behavior as consumers get used to buying on promotion.
Modeling these impacts, and also testing new promotion types is difficult. 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.
In this 30-minute webinar we explained to you what we have done and took you through the first results.
Assessing the long term impact of promotions
Leonie Barelds, Shopper Insights Manager and Business Analyst Savoury Benelux | Pepsico
Maureen Arink, Senior Research Director | SKIM
SKIM is known for modeling choice behavior, mainly based on ad hoc research. This however does not cover long term impacts of promotions on brands and markets. We showed you:
- 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