Among these growth strategies is promotion drives

Marketing Analytics

Marketing Analytics
Contents
Introduction.................................................................................................................... 3
Methodology.................................................................................................................. 3
Analysis Results.............................................................................................................. 5
Conclusion..................................................................................................................... 8
Recommendations............................................................................................................ 9
References................................................................................................................... 10
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Marketing Analytics
Introduction
Improving the position of a company in its market requires the application of growth strategies
that will enable it to increase its market share (Kiechel, 2010). However, the way in which
many markets are structured makes it difficult for companies to increase their market share and
improve their positions. This is especially true for already existing and more developed markets
where there exist some level of monopoly in terms of both the resource access and pricing. The
results of this monopoly is the continued dominance of the markets by market leaders. For
emerging markets, the case is different since there does not exist any restriction concerning
either resource access or pricing. This means that in emerging markets it is much easier to break
into the market as well as to improve a company’s position.
Although improving a company’s position is difficult in established markets, it is not impossible.
This depends greatly on the development and implementation of the growth strategies. Among
these growth strategies is promotion drives. Promotion drives are growth strategies that involve
the use of incentives to encourage customers to purchase a product (Farris & Neil, 2010).
Promotion drives are set to run over a pre-defined period before the resumption of normal sales
practices. The incentive may come in two forms: reduction in price per unit of product and
adding an extra product for the purchase of given line of product(s). The aim of the promotion
drives is to attract customers that would otherwise purchase alternative products (Laudon &
Guercio, 2014).
This report presents findings from the use of promotion drives by the Carman’s Kitchen
Company on a pilot bases. Carman’s Kitchen operates in the cereal bars producing industry in
Australia with a market share equivalent to 20%. The company is considering four different
price-based promotion strategies for its four product lines. The report contains analysis of the
effectiveness of the four pilot promotion strategies. Recommendations on which promotion
strategy has the best success rate will also be included.
Methodology
The analysis of the data on the four promotion strategies involve the computation of relevant
financial metrics. Financial metrics refers to aspects of financial data that provide valuable
information on the performance of the financial entity in question (Farris & Neil, 2010). This
analysis considers the following financial metrics in the assessment of the performance of the
four promotion strategies applied by Carman’s Kitchen on a pilot basis:
1. Baseline Brand Sales: Baseline sales refers to the amount of sales prior to the start of the
promotion period (O'Malley & Lichrou, 2016). In this case, the brand sales are
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