The paper “ Analysis of Brand Performances, Introduction of the New Product in a Market” is a potent version of the assignment on marketing. In a normal business operation field, promotion always has an impact on sales volumes of products. Products sold under high promotion strategies especially in a competitive market show higher volumes than those left to operate freely in the market. This has been the reason under price wars in the most competitive market and the result is that the lower price-setters take the market advantage above their competitors’ .
From this perspective, Mr. Bossy's statement could be right. The data in the Appendix can be used to evaluate the Executive managers’ decision. To achieve this consideration will be put on the price against market share coverage. The expected outcome as per the executive managers’ comment is that those products having a wider market share are supposed to show averagely low prices as a promotional strategy. Taking for example of Kellogg’ s, it’ s showed sales reduction as across the period as compared with the price before promotion. The worst of this could be seen in the April market where after price promotion the sales reduced from 12.998 to 5.125 (third market region 1).
Across the regions, the sales of Kellogg’ s are seen to substantially drop instead of increasing as expected from Mr. Boss’ s view. Also in the region, one market Brekky shows fluctuation in sales despite the price promotion which was expected to show some increase in sales. Taking an example of January to April market in the first region, it could be seen that Private labels, Lowan and Uncle Tobys were the least in the market share at 8 percent before promotion.
After promotion, Uncle Toby's market share was 17 percent, Lowan market share remained at 8% while private level moved to 17%. Carman, which was at a 10% share in the market showed a leap to 17% promotion, while Sanitarium moved from 11 to 14% in the market share. Kellogg’ s and Nestle which shared the markets at 20 and 1t percent in the market a 14% and 17% result after promotion. Using the above study, the expectation was to have a general scaled sales increase across the products tentatively.
However, this is not the case in this where there is a fluctuation in the trends with major shareholders going down after price promotions have been undertaken. However, going by the principle of data reduction, this is not seen to be the case. From appendix 1, the reduction of production volumes to as well as combining them to achieve large volumes that will be cost-effective seems to produce almost equal results. Averagely, the volumes, as well as average prices, remain constant. From the study, it can hence be deduced that the executive officers' view on the influence of price promotion of the market share is inaccurate. For Brekky, the most profitable region is in region three.
The rest of the regions Bekky operates seem smaller share in the market. Attempts through price promotion to reach maximum share in the market as well as seen the sales drastically reduces such as in region 2 an 1. Brekky maximum sales are hence experienced in the third region.