| When customers buy things in supermarket, they will face about240things. The biggest problem for brand marketer is that how to influencecustomer final purchase decision in modern trade. As main communicationchannel, sales promotion has a significant meaning. According toA.C.Nilsen, generally FMCG companies invest70%of marketingexpenses into trade promotion. Among the whole expenses of tradepromotion,40%is invested into less than10%supermarkets. Investing inmodern trade is equivalent to seize customers and market share.This article systematically reviews foreign and domestic researchesabout sales promotion, including concept, classification, theory andevaluation about the effects of sales promotion. Then this articlesummaries general sales promotions, analyzes subjects of sales promotion,benefits for brand marketers and customers. Based on above reviews andsummaries, this article sums up different sales promotions goals that eachof them has specific different sales promotion ways.This article uses discrete choice model, especially multinomial logitmodle, to do empirical analysis by using toothpaste industry customerpurchase data of Shanghai area. This article analyzes the relationshipbetween brand equity and market share, price elasticity and salespromotion elasticity, simulates eighteen changing sales promotion portfoliostrategies from the perspectives of single brand, competitor brand anddifferent products under the same brand to analyze the change of marketshare to evaluate the effect of sales promotion.This article finds that brand has the biggest influences on customer final purchase decision, then price and sales promotion which they havethe similar effect. Among three kind of sales promotion, valuablepromotion has bigger influences than trade communication promotionand brand communication promotion. For the seven sales promotions,based on their coefficient, the rank is price discount, mass display, gift,promoter, promotion package, brand advertisement in trade and sidedisplay. |
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