,romotion Profitability for a Retailer,P,the role of promotion, brand, category and store characteristics,Kusum L. Ailawadi, Bari A. Harlam, et. Journal of Marketing Research,Presenter: GUO DONG,PROMOTION,促销,005,Contents,Marketing Modeling I,Promotion Profitability for a Retailer,Data Methodology Correlates Key findings,1 2 3 4,03 09 13 16,DATA ,Promotion Profitability for a Retailer,Data Methodology Correlates Key findings,1 2 3 4,03 09 13 16,DATA,Weekly point-of-purchase scanner data for 2003,CVS ExtraCare Loyalty program, 2 years panel data,Internal company records, et.,CVS,Drug store,HOW CAN WE,EVALUATE,THE EFFECTS OF,PROMOTION, SALES, SALES = Promotion Sales Baseline Sales,Gross Lift,Manufacturer V.S. Retailer,Switching,Stockpiling,Store net unit impact = Incremental Lift + Halo,= Gross lift Switching Stockpiling + Halo,Gross Lift = Unit sales of a item baselineThe number of weeks varies with the turnover Seasonality of the item,Gross Lift,Consider two extreme situations,Accounting for the gross lift from all promoted items Season Store Frist difference,Switching,Estimate the stockpiling percentage for a category across stores,Stockpiling,Compare promotional buyers with nonpromotional buyers,1,2,Halo,d goes from 1 to 4 for the health, beauty, edible products and general merchandise departments Separate halo effect for each department Deseasonalize and first difference,Store net unit impact = Gross lift Switching Stockpiling + Halo,Finally, net unit impact and net profit impact can be calculated:,= Gross lift (1 %Switching %Stockpiling + %Halo),Store net profit impact = Promotion sales Base sales Switching loss Stockpiling loss+ Halo gain,Promotion Sales,Base Sales,Switching loss,Stockpiling loss,Halo gain,CORRELATES ,Promotion Profitability for a Retailer,Data Methodology Correlates Key findings,1 2 3 4,03 09 13 16,“,We are not aware of any research that quantifies the net unit and net profit impact of promotion for a retailer and studies the correlates of that net impact.,-by the author,Conceptual Framework,Store net unit impact = Incremental Lift + Halo,= Gross lift Switching Stockpiling + Halo,Store net unit impact: incremental lift Store net profit impact: the retailers promotion V.S. regular margin,KEY FINDINGS ,Promotion Profitability for a Retailer,Data Methodology Correlates Key findings,1 2 3 4,03 09 13 16,1,2,There is a positive halo effect of promotion; for every unit of gross lift, .16 unit of some other product is purchased elsewhere in the store.,3,Despite the substantial net unit impact, more than half of CVS promotions are not profitable, because promotional margin is often significantly less than regular margin.,4,5,Cross-store variation is a small component of total variation in net impact. Cross-category and cross-brand components are both significant, and the latter is particularly substantial in net profit impact.,Many promotion and brand correlates that are positively associated with net unit impact have a negative association with net profit impact, revealing a difficult challenge for retailers.,thanks for your attention,T,欢迎共享,请勿商用,如有对作品的问题或建议欢迎与果冻进一步讨论 QQ: 819481090 新浪微博：LB-jellylover,