Abstract:

LATAM-based companies are usually pressed to do more with less, managing frugal operations with ever tightening budgets. Marketing managers are requested to allocate their marketing dollars more efficiently to instigate change in consumers and gain incremental users to their brands; however, the available body of knowledge on promotion effectiveness is often incomplete, disaggregate, and sometimes anecdotal. SKIM takes on the challenge of systematically measuring and comparing the effectiveness of 20+ types of promotions across 5 countries in the Americas, for two CPG product categories. To add a fundamental layer to our understanding of what works and doesn't work in LATAM markets, we aim to identify key underlying behavioral economic principles driving the success of certain promotions.