Abstract:

To improve the situation of a brand on the market, at least two types of promotion may be contemplated: delivering a coupon at home, and delivering a sample at home . The cost of each promotion can easily be estimated. Unfortunately, the profit of each of them is eventually susceptible to yield is more difficult to predict. It is almost needless to say that the main profit one can expect from this type of promotion is that resulting from their power to make more people buy the brand for the first time. In other words, this type of promotion is mainly intended to increase the brand's penetration's of the market. What happens afterwards, and namely the fact that the consumers do repeat buying the brand, is not the responsibility of the promotion itself. In the case study to follow, a micro panel helped the Company to approach this problem and select the most profitable promotion.