“Price Promotions and Popular Events”
Consumer packaged goods (CPG) firms often run price promotions during popular events such as the Olympics, the Superbowl, and the FIFA Soccer Cup. Price promotions during events generate an additional sales lift of 9.3% on average. However, not all promotions yield desired results. One in four leads to brand overspending and one in four fails to exploit consumer demand. Brand managers can use this research to design event-based price promotions to achieve desired sales.
A new study in the Journal of Marketing examines consumers’ responses to price promotions during popular events comparing them to non-event times. The research team examined 242 consumer packaged goods (CPG) brands and their price promotions during five popular events held in the Netherlands between 2007 and 2011. Since sales promotions constitute a large portion of CPG manufacturers’ total marketing budgets – up to 55% in the U.S. – getting higher-spend event promotions right is core to a brand’s success.
Read the article in the Journal of Marketing: Price Promotions and Popular Events, Wiebke I. Y. Keller, Barbara Deleersnyder, Karen Gedenk first published Nov. 19, 2018Zurück