Example Of Marketing Business Research Essay

Type of paper: Essay

Topic: Business, Products, Market, Sales, Brand, Shampoo, Promotion, Company

Pages: 6

Words: 1650

Published: 2020/12/28

Introduction

The provides an optimization of promotional activities across Shampoo priority brands. The brands are namely X and Y and target the ready market of people who consumes the products. In this paper, we have sought the services of Nielsen Analytic Consulting, which is a consulting company. The company offers its modeling capabilities that would be efficient in helping the clients to answer the questions concerning the promotional efficiency. The questions that the consulting group contributes to answering are the ones that have been examined in this paper. This paper uses relevant data information to examine the promo modeling activities while putting into consideration the potential limitations of the practices. According to the agency, the major limitations are small distribution of some promo items and limited availability of the promo calendar. Shampoo is one of the hair care product that has been experimented by many people as a result of its cheap prices and easy availability in the market and little risk in purchasing. As a consequence, Shampoo hires services of marketing professionals to help in placing the company above other similar products and always be the preferred product of all times. The professional marketers involved markets the products directly to their customers and creates an image of a product that makes the hair of an individual look the best. They also appeal top their clients' environmental sensibilities by ensuring that they have a unique way of establishing their products ingredients and packaging. The method used in promo modeling is referred to as econometric modeling of items sales. The model uses weekly historical store-level data to explain an item's sales using the known variables. Some of the known variables include absolute price, the price as compared to that of competitors, the intensity of the price promotions, the feature activities and promo packs among others. The importance of the modeling process identified is to relate the importance and the effect of the identified marketing variables and how they are used in the promo activities by the company. In addition, the model describes the variables for the set time of the study which, in this case, is 52 months. Therefore, this paper shall consider the quantifications of how the sales items are affected by the price changes and promotional in-store activities. This will be possible since the store level modeling is appropriate for enhancing the isolation and measurements of the impacts of the price changes and promotional activities on the sales volume up to the store level.

Discussion

The most efficient method of promotion
The most efficient way of promo which is readily available in the market is Temporal Price Reduction (TPR). This process is considered among the other possible types due to its market distributable nature. It can be applied in different market set-ups, unlike the others which it is hard to understand their scope since they lack that aspect of random markets distribution. The approach was applied by the company for a period of six weeks and achieved a minimum of 5% sales increments. The method entails a strategic price reduction for a particular period, the initiative targets to increase the quantity of sales. Reduction of price will attract many customers who will prefer the product over the others available which may be overpriced. However, the main purpose of using this method is to attract many customers to test the products. In the case in a near future the price is increased; their clients will not run away since they have already tested and felt the quality of the products. Interestingly, looking at the market dynamics, it is possible that some people will continue purchasing a high-quality product even at times when the prices have been increased.
promotional packs and incremental share/ grow category

Yes, they bring an increment of share/grow category.

Availability of promotional packs means that there are activities in progress, in this scenario, the activities in progress is making sales for our product. Sales are direct results of in-store activity when there exists no action there will be no any recorded grow. In turn, the increase in the shares or growth expansion will not be possible. From the report provided by the consultant company, it is evident that the promotional packs contributed to an increment of five percent'. Therefore, this was an excellent development owing to the negativity of different people on products sold by using this approach.
high cannibalization index between brands
No.
Comparing the charts provided that analyzes the percentage of total sales and their increment. It also analyzes the split of losses to competitor promotions of both brand Y and X. From the illustrations provided, it is clear that the smallest allocation of the cannibalization in the graphs is almost distribution contrary to the others they had a considerable measure of a higher portion of the charts. Cannibalization of the brand refers to the actions of the reduction in the sales volume, revenue from the sales or the market share. The company has maintained the two brands in the market, and that's why the cannibalization of the brands is zero

Importance of promo decomposition

Promo decomposition involves the breakdown of the promotion approaches applied in the process. Notably, any pricing increase can be strategically being as a result of an increase in the consumers’ perception of the product hence an increase in the sales. Promo decomposition facilitates what is referred to as primary and secondary demands of a product and how they affect the entire process of promotion.

Thoughts on highly promoted markets

Highly promoted markets have a more likelihood of attracting multiple clients with diverse needs; the customers may also be from different backgrounds and social classes. In addition, strategizing for promotion of a product is easier as compared to the markets which are lowly promoted. While venturing into a new market, the most appropriate market to venture in is a highly promoted markets since gains will be far much higher than the losses accrued.

Average promo density in a Shampoo market

Shampoo promo strategies in the market usually in most cases targets the youths and teenagers who form the high percentage of their product users. The promo density can be approximated to be 95% of the total market of their products for hair care. Shampoo has two brands which are X and Y names. The promo density of the two brands in the market is different since both products have their receptivity amongst their potential and existing clients.
promo efficiency as compared to the other brands
There are numerous brands of similar products which exist in the same market where Shampoo is sold. However, it is undisputable fact that customers have widely accepted other bands shampoo, and they have recorded the highest level of profits at all times. The company hires the services of professional marketers who carries for them the promo processes. They create a notion that Shampoo is a unique brand which is far much different from the other products which exist in the hair care products markets. Importantly, the prices of Shampoo products are not cheaper than the other enterprises brands but the company has established a name among the consumers, and that is the reason their products are considered to the others. However, the greatest contributor of this scenario is the high efficiency of the promo as compared to others.

Importance of base sales for a brand

Base sales can be defined as the sales which frequently occur without any in-store activity taking place. They are sales that are mostly attributed to new products being introduced into a market setup. Base sales are significant since they act as a control of the promo decisions. The efficacy of any promotion activity will be compared alongside the base sales. In a situation where base sales are equal to the sales after incorporation of the promo strategies, the promo is improved to boost the reception of the products to the clients. Base sales should, however, be not confused with lost sales. Lost sales are the sales lost as a result of the competitor promotions, therefore in scenario where the competitors do not promote their products shampoo brand base sales will increase.

Promotions needed to be invested more

Shampoo producers have not focused much is the media promotion strategies as it would be an expectation of many people. They include the use of adverts in both print and the rest of the media. It also involves running programs in the media stations aimed at promoting the product to the listeners or the subscribers of the media. The promotions may include competitions among the listeners and free gifts to the individuals who answer questions based on the product successfully. In addition, the E-commerce is gradually rising and currently it has become a force to reckon with in business. Shampoo brand majorly targets the youths who makes the largest percentage of the product users; youths are the most frequent users of online platforms. Therefore, shampoo marketers must put more efforts in these sectors.

How to position our price and promo price strategy

There are several factors that need to be put into consideration before coming up with a rigid and stable market price and the promo price. The competitor’s prices must be evaluated keenly before the setting a standard rate. The company can apply either over-pricing strategies or pricing below their competitors. However, the prices must be appealing to the clients to avoid them ignoring the availability of the product in the market. In addition, the Temporal Price Reduction (TPR) can be useful since it will set the price temporarily for a period and later the prices after the brands gain their grounds in the market.

The most important between item and Brand Uplift

Brand uplift has more positive impact as compared to item improvement, brand uplift entails the process in which the entire company is named in the promotion, and hence other products by the same company will be known. However, item uplift benefits only a single product and not the entire company. Brands uplift will be beneficial to the whole society and not only to the particular item being promoted. In turn, sales will increase which translates to profit increase.

Conclusion

Promo strategies by enterprises are necessary since they generate a reception of the product to the potential clients. As a result, there is a need for all the companies to engage in the promo activities. Similarly, the promo strategy should be aimed at benefiting the customers since they are the ones who determine the survival of the product in the market. This process should be invested heavily and be part of the annual budgetary allocations. Lastly, I would recommend the use Temporal Price Reduction (TPR) as the best promo strategy due to the reasons given above in this paper.

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WePapers. (2020, December, 28) Example Of Marketing Business Research Essay. Retrieved June 30, 2022, from https://www.wepapers.com/samples/example-of-marketing-business-research-essay/
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