Testing the Effectiveness of Supermarket Sales Strategies
Testing the effectiveness of supermarket sales strategies
Table of Contents
I. Introduction……………………………………………………………………p. 3
II. Scenario………………………………………………………………………..p.4
III. Methodology………………………………………………………………….p.6
IV. Hypothesis……………………………………………………………………p.9
V. Data Analysis……………………………………………………………….p.13
VI. Conclusion………………………………………………………………….p.16
Appendix………………………………………………………………………..p.17
I. Introduction
Most supermarket strategies such as advertising, special promotions, price reductions, in-store promotions, variables in display space or quality of display location are used to increase the unit sales of certain products. Although supermarkets maintain their sales by using these specific merchandising activities, findings of empirical studies doubt that all strategies will produce equally significant increases in unit sales of targeted products. For example, the studies found that price reductions doesn’t always have a significant correlation and more likely to have an unpredictable effect on unit sales. From another hand, supermarkets get a sizable percentage of their total sales through display. It works very simple - displays create in-store excitement and increase the average amount purchased because consumers tend to view them as special bargains and often buy products which they had no previous intention of buying.
Thus, it becomes obvious that systematic measurement of the influence of various combinations of merchandising and different activities helps significantly improve a strategy of maximizing profit of the particular supermarket, but also is very essential part of developing management decision-information systems in the world.
II. Scenario
Testing the effectiveness of supermarket sales strategies, I will examine the relative importance of temporary price reductions and display alternatives to unit sales of supermarket products for the week. My experiment involves two factors: Display level (factor A)
Table of Contents
I. Introduction……………………………………………………………………p. 3
II. Scenario………………………………………………………………………..p.4
III. Methodology………………………………………………………………….p.6
IV. Hypothesis……………………………………………………………………p.9
V. Data Analysis……………………………………………………………….p.13
VI. Conclusion………………………………………………………………….p.16
Appendix………………………………………………………………………..p.17
I. Introduction
Most supermarket strategies such as advertising, special promotions, price reductions, in-store promotions, variables in display space or quality of display location are used to increase the unit sales of certain products. Although supermarkets maintain their sales by using these specific merchandising activities, findings of empirical studies doubt that all strategies will produce equally significant increases in unit sales of targeted products. For example, the studies found that price reductions doesn’t always have a significant correlation and more likely to have an unpredictable effect on unit sales. From another hand, supermarkets get a sizable percentage of their total sales through display. It works very simple - displays create in-store excitement and increase the average amount purchased because consumers tend to view them as special bargains and often buy products which they had no previous intention of buying.
Thus, it becomes obvious that systematic measurement of the influence of various combinations of merchandising and different activities helps significantly improve a strategy of maximizing profit of the particular supermarket, but also is very essential part of developing management decision-information systems in the world.
II. Scenario
Testing the effectiveness of supermarket sales strategies, I will examine the relative importance of temporary price reductions and display alternatives to unit sales of supermarket products for the week. My experiment involves two factors: Display level (factor A)