Promotions.

The challenge

To understand how promotions work in the UK hot drinks market in order to maximise the sales uplifts from the below-the-line marketing budget.


What we did

  • Relevancy: to how many people is the promotion relevant / likely to be of potential interest?
  • Identification: how well-known / well-liked is the promoted brand and any partner brand?
  • Accessibility: how much effort will be involved in taking part in the promotion?
  • Value: what is the monetary and emotional value of the reward and how easy is it to win/obtain?
  • Risk: how big is the downside risk to taking part in the promotion – i.e. if I change my brand to take part in it, what's the risk I'll have to throw it all away unused etc.?

Using a combination of market research & marketing mix modelling, we measured the intrinsic appeal of the promotions to consumers and evaluated the sales effects of differing promotions. Using a monadic research design, we incorporated questions that would let us arrive at a score for each promotion’s overall Promotional Engagement Index (PEI) core:


Outcomes

The PEI score helped us select the promotional concept that had the greatest chance of success. It was also important for us to identify the key features of each of the promotions that made them more/less appealing to consumers and related that to the measured uplifts. This provides the ability to pre-test future promotional concepts and from that score predict a likely consumer sales uplift.

The project was extremely successful and led to a 50% increase in the profitability of the promotional budget and an average 20% increase in sales impact.