Sales promotion of selected products in food processing industry..

Abstract

The paper deals with predictability analysis of impact of sales promotion campaigns on food products through semi-parametric approach. Result of this modelling procedure is represented by so-called "deal effect"; curves which show how price of particular product will affect its sales. Results are based on case study with focus on one kind of bread and one beer brand. Authors draw following conclusions: Sales promotion activities are very important for food processing subjects and they can become a determinant of viability for particular companies. Final effect of sales promotion on sales quantities really is predictable to a certain extent. Analysed data has been taken from extensive primary research realized by the Department of Marketing and Trade, Faculty of Business and Economics MENDELU in 2008.The paper deals with predictability analysis of impact of sales promotion campaigns on food products through semi-parametric approach. Result of this modelling procedure is represented by so-called "deal effect"; curves which show how price of particular product will affect its sales. Results are based on case study with focus on one kind of bread and one beer brand. Authors draw following conclusions: Sales promotion activities are very important for food processing subjects and they can become a determinant of viability for particular companies. Final effect of sales promotion on sales quantities really is predictable to a certain extent. Analysed data has been taken from extensive primary research realized by the Department of Marketing and Trade, Faculty of Business and Economics MENDELU in 2008.

Keywords

• Marketing tools
• sales promotion
• propagation effect
• deal effect