Promo Evaluator [2012]
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Promotions generate short-term sales uplifts but shall moreover contribute to brand building and brand loyalty, as opposed to the risk of “educating” brand buyers over time to bargain hunters. Promotion*Evaluator gives answers regarding sustainability of brand promotions or particular promotion mechanics.
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Promo Evaluator [2012]
- 1. 1© GfK 2012 | Promo*Evaluator | 27th June 2012 PROMO*EVALUATOR Gabriela Luca 27th June 2012
- 2. 2© GfK 2012 | Promo*Evaluator | 27th June 2012 Consumers are still under considerable pressure to make ends meet © GfK 2012 | Promo*Evaluator | 27th June 2012
- 3. 3© GfK 2012 | Promo*Evaluator | 27th June 2012 Promotion Mechanism put into Motion © GfK 2012 | Promo*Evaluator | 27th June 2012
- 4. 4© GfK 2012 | Promo*Evaluator | 27th June 2012 Leading to Promotion Value Share of Source: GfK Consumer Panel I 2011 I Calculation based upon consumer basket including monitored product categories Czech Republic Slovakia Hungary Serbia Romania Bulgaria 9% 9% 49% 28% 12% 35% Poland 8%
- 5. 5© GfK 2012 | Promo*Evaluator | 27th June 2012 2 Directions Considered When Designing a Promotional Campaign Economic: Rise Sale Emotional: Brand Contribution
- 6. 6© GfK 2012 | Promo*Evaluator | 27th June 2012 What are the effects of Promotional Campaign on my Brand Value? © GfK 2012 | Promo*Evaluator | 27th June 2012
- 7. 7© GfK 2012 | Promo*Evaluator | 27th June 2012 GfK Business Solution - Promo*Evaluator • What are the medium to long-term effects of promotions on brand value? • How successful is my promotion campaign compared to competitors? • Am I educating my brand buyers to just wait for the next promotion? • In the meantime they do not buy my brand at regular price?
- 8. 8© GfK 2012 | Promo*Evaluator | 27th June 2012 Promo*Evaluator Model Based on 3 Consecutive Purchase Acts Source: GfK Consumer Panel Promotion Purchase: Data collection by households Brand at special offer price Other Brand Brand at regular price Brand at special offer price Other Brand Brand at regular price Where is the buyer coming from? Where is the buyer going to? Before promotional purchase After promotional purchase Model
- 9. 9© GfK 2012 | Promo*Evaluator | 27th June 2012 Qualitative Evaluation of the Promotion Effect via Pre-/Post- Purchase Acts Method: GfK Consumer Panel Promo*Evaluator I Definitions: R-price=regular price/ SOP=special offer price Brand investment Brand at SOP Other brands Brand at R-price Other brands Brand at R-price Brand at SOP Brand at SOP Other brands Brand at R-price Other brands Brand at R-price Brand at SOP … win new buyers sustainably?
- 10. 10© GfK 2012 | Promo*Evaluator | 27th June 2012 Qualitative Evaluation of the Promotion Effect via Pre-/Post- Purchase Acts Defended market share Brand at SOP Other brands Brand at R-price Other brands Brand at R-price Brand at SOP Brand at SOP Other brands Brand at R-price Other brands Brand at R-price Brand at SOP Brand at SOP Other brands Brand at R-price Other brands Brand at R-price Brand at SOP Fast Euro Loyalty bonus Method: GfK Consumer Panel Promo*Evaluator I Definitions: R-price=regular price/ SOP=special offer price … defend market shares? … waste money? … win buyers from the competition on short-term?
- 11. 11© GfK 2012 | Promo*Evaluator | 27th June 2012 Qualitative Evaluation of the Promotion Effect via Pre-/Post- Purchase Acts Brand at SOP Other brands Brand at R-price Other brands Brand at R-price Brand at SOP Brand erosion Brand at SOP Other brands Brand at R-price Other brands Brand at R-price Brand at SOP Method: GfK Consumer Panel Promo*Evaluator I Definitions: R-price=regular price/ SOP=special offer price … harm your own brand?
- 12. 12© GfK 2012 | Promo*Evaluator | 27th June 2012 14% 23% 4% 10% 9% 17% 51% 30% 21% 20% Value Pilsner Value Gambrinus Brand investment Fast Euro Defended market share Loyalty bonus Brand erosion Promo*Evaluator (PEV) Pilsner & Gambrinus beer on promotion 2010 Basis: GfK Consumer Panel Czech Republic (2.000 households); year 2010 Market value: = Brand investment - Brand erosion 7% Pilsner 3% Gambrinus
- 13. 13© GfK 2012 | Promo*Evaluator | 27th June 2012 Promotion Trap in case of excessive price promotions Brand buyer Promotion buyer Private label buyer Discount buyer © GfK 2012 | Promo*Evaluator | 27th June 2012
- 14. 14© GfK 2012 | Promo*Evaluator | 27th June 2012 Why should you always keep an eye on Promotion Campaign’s Effects on Brand Value?
- 15. 15© GfK 2012 | Promo*Evaluator | 27th June 2012
- 16. 16© GfK 2012 | Promo*Evaluator | 27th June 2012 Because Brands speak the language of the people! Keep your Brand’s perspective!
- 17. 17© GfK 2012 | Promo*Evaluator | 27th June 2012 THANK YOU FOR YOUR ATTENTION! Gabriela Luca I Researcher Consumer Panel gabriela.luca@gfk.com www.gfk-ro.com I www.gfkcs.com