The paper “ The Implication for Brekky Brand, Brand Performance Metric, Duplication of Purchase" is a meaty example of an assignment on marketing. The table below shows the data for sales of regular or basic sales and sales with promotion. There are three different regions that show brand sales on the market. It is expected that during the promotion season, there should be high sales and low profit, however. Price promotion according to Blatterberg et al. , (1995), is a reduction of the prices temporary offered to the consumer. To be able to evaluate the performance of any promotion, the baseline performance of the brand (Abraham and Lodish 1993).
This resulted in having data of the two types of sales to ensure that the promotion performance is measured for Brekky. The sales were simplified further for easy analysis for Mrs. Bossy. Brand Sales $10,000 Sales on promotion $10,000 Market share% Market share% when promoted Rank Rank when promoted Kellogg's 77.21 55.36 21.2 12.0 1 7 Nestle' 64.27 56.46 17.6 12.2 2 4 Brekky 58.56 60.92 16.1 11.9 3 8 Sanitarium 38.80 57.69 10.7 12.2 4 5 Carman's 36.45 58.93 10.0 13.8 5 1 Lowan 32.66 51.23 9.0 12.7 6 3 Private labels 31.69 64.89 8.7 12.1 7 6 Uncle Tobys 24.63 55.92 6.8 13.1 8 2 Average 45.53 57.67 - - - - Total 364.27 461.39 100.0 100.0 - - The table above indicates that there is overall total sales during the promotion period was higher compared to normal sales. There is also an indicator that the market share also increased. However, the promotion of more sales in some products than the normal sales indicates that not all products positively impact on the products from the organization.
During the sales in the first region, the biggest sales during normal sales are Kellogg’ s while Nestle was the biggest during the promotion period. Kellogg’ s, Lowan, Brekky, and Private Labels have not increased market share after promotion. The main aim of sales promotions as a strategy in marketing to raise sales temporarily is to increase sales and gain market share. The marketer should not base on the initial impact of promotion but look at the future impact.
The business owner should not base only on price promotion as the factor to increase sales. From the above data market share and sales does not only base on price reduction but other factors such as the competitiveness of individual brands in the market. The sales volume has increased with sales promotion but the overall market share. Price promotion, therefore, does not work or greatly affect all the products because some product’ s sale did not go up as expected. Comparison of regional salesThe data above shows the total sales of all the brands by Brekky on sales without promotion.
Region 1 and Region 3 had the same sales percentage of 33%. Region 2 had the highest of 34%. While the sales in the region during promotion for the two regions that sold the least improved region 1 and 3 had 34% sales while the sales for region 1. Price promotion in some regions may have not had an effect if other stores also did the same promotion during the same period (Lieberman 1981).
Eskin and Baron (1977), points out that sales volume in a given area may result in negative price-advertising where the sales of the company go down. This can be the explanation reduced sales in region 2 during the promotion time, such cases result in high expenditure. Gedenk & Neslin (1999), assert that promotion does not scale down the market share for the long term. Generally, there are increased sales in all the regions during the promotion period compared to the normal sales period.