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Promotion analysis

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Promotion analysis

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    1. Promotion analysis You have just run a 50 cents–off coupon to promote your cereal bar pack to new users. The results are as under: Volume : 50,000 boxes sold on promotion Of these, 70% volume is from current users of your brand. Amongst these current users, 60% of the volume is due to stocking up, i.e. the buyers have bought two boxes instead of one. The remaining 30% volume is from new users. A 50 cent drop in price implies a 55 cent cost due to retail handling charges A 55 cent drop in price translates into a 10 cents drop in profit. You usually make 35 cents per box as normal profit. The cost of printing and distributing the coupons was $2500. Was the promotion a success?

    2. Promotion analysis

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