Abstract:
Everyday Low Price (EDLP), along with Category Management, Consumer Loyalty and Efficient Consumer Response (ECR) have become the jargon words for Marketing in the mid 1990âs. Everyday Low Price, an American import, was originally devised as a way of smoothing the production line process and minimising the amount of money paid out on promotion, principally within the fast moving consumer good marketplace. This paper argues that EDLP is inappropriate for the British marketplace. Both the legislative differences, the dominance of a small number of retailers, and the very low pricing in some markets indicate substantially different fast moving consumer good market conditions. Through the analysis of continuous consumer panel data, the paper examines the effect in marketplaces where EDLP has been introduced, and the subsequent effects on both the brands in question and on the cheaper budget brands and private label products. The paper also considers whether a consistent price policy, in a marketplace where promotion remains a key driver of short term share is a realistic position for a manufacturer to adopt.
Research Papers
The contribution of research to the planning, budgeting and evaluation of below-the-line activity
Catalogue: Seminar 1971: Below-The-Line Activities
Author: David Lowe-Watson
Company: ESSO
June 15, 1971
Research Papers
Consumer panel behavioral and attitudinal insights in responding to retail shopping trip decay
Catalogue: ESOMAR Panel Research Conference 2005
Author: Todd Hale
Company: Nielsen
April 17, 2005
Research Papers
How to effectively compete against private-label brands
Catalogue: Seminar 1994: Building Successful Brands
Author: Susan R. Ashley
 
June 15, 1994
