Methodology for planning a successful store flyer campaign based on a case study from a Czech retail market

Main Article Content

Vladimíra Kučerová
Jaroslav Zeman

Abstract

Research background: An essential part of marketing practice in contemporary food retail is the store flyer campaign, in which goods are offered at discounted prices. Even if it is not a new innovation in the field of sales promotion, its popularity does not decrease, and what’s more, in many countries it is still one of the most successful forms of promotion and communication with customers.


Purpose of the article: This article brings an answer to the question of how to plan a successful store flyer campaign. The goal is to design the process of planning such campaign based on the knowledge of price elasticity of demand. The rate of success is represented by the level of fulfillment of goals set by the merchant.


Methods: The area of the research is the Czech retail food market . The knowledge of the price elasticity of demand is based on the analysis of real terms of prices, sales volumes and margins, and the typology of goals we want to achieve. The proposed method of planning determines the evaluation rules for products in terms of their suitability for inclusion in a store flyer. The calculated values of price elasticity of demand and their changes during the time phases of the campaign are used as a knowledge base for a planning of consumers’ responses to the store flyer. The principle of planning is demonstrated in a case study.


Findings & Value added:  The practical output of the proposed process is the answer to the question of which goods should be included in the store flayer to achieve the goals set for the campaign. This study gives the method of identifying the groups of products which are suitable for inclusion in the store flyer and recommends the rules for the planning of the campaign.

Article Details

How to Cite
Kučerová, V., & Zeman, J. (2018). Methodology for planning a successful store flyer campaign based on a case study from a Czech retail market. Oeconomia Copernicana, 9(4), 755-779. https://doi.org/10.24136/oc.2018.037
Section
Articles

References

Aguirre, C. M. (2011). Elasticity of demand and supply. Retrieved form http://faculty.mdc.edu/caguirrl/Outline6.htm.
Andreyeva, T., Long, M. W., & Brownell, K. D. (2010). The impact of food prices on consumption: a systematic review of research on the price elasticity of demand for food. American Journal of Public Health, 100(2). doi: 10.2105/AJPH.2008.151415.
Baye, M. (2008). Managerial economics and business strategy. New York: McGraw – Hill.
Bolton, R. N. (1989). Relationship between market characteristics and promotional price elasticities. Marketing Science, 8(2). doi: 10.1287/mksc.8.2.153.
Colchero, M. A., & Salgado, J. C. (2015). Price elasticity of the demand for sugar sweetened beverages and soft drinks in Mexico. Economics and Human Biology, 19. doi: 10.1016/j.ehb.2015.08.007.
Drtina, T. (2010). The crisis affects the purchasing behavior of the population and the flyer communication of the retail chains - where does the discount spiral stop?. Retrieved form http://www.incoma.cz/cz/ols/reader.aspx?msg= 1083&lng=CZ&ctr=203.
Frank, R. H. (2008). Microeconomics and behaviour. Boston, USA: McGraw-Hill Irwin.
Gázquez-Abad, J. C., Martínez-López, F. J., & Barrales-Molina, V. (2014). Profiling the flyer-proneconsumer. Journal of Retailing and Consumer Services. 21. doi: 10.1016/j.jretconser.2014.08.019.
Gázquez-Abad, J. C., & Martínez-López, F. J. (2016). Understanding the impact of store flyers on purchase behaviour: an empirical analysis in the context of Spanish households. Journal of Retailing and Consumer Services, 28. doi: 10.1016/j.jretconser.2015.08.006.
GfK (2015). The consumers' popularity of the store chains increased by 3 percent year-on-year. Retrieved form http://www.mistoprodeje.cz/clanky/pos-novinky/ gfkdomacnosti-daji-vice-na-nizke-ceny-nez-na-ceske-znacky/.
Grubor, A., & Milicevic, N. (2015). The analysis of FMCG product availability in retail stores. Inzinerine Ekonomika-Engineering Economics, 26(1). doi: 10.5755/j01.ee.26.1.7070.
Gwartney, J. D. (2005). Economics: private and public choice. South−Western: Cengage Learning.
Hendl, J. (2016). Qualitative research. Praha: Portál.
Jensenetal, B. B., Orquin J., & Bech-Larsen, T. (2014). What distinguishes passive recipients from active decliners of sales flyers? Journal of Retailing and Consumer Services, 21(1). doi: 10.1016/j.jretconser.2013.07.008.
Kotler, P. (2013). Marketing management. Praha: Grada Publishing.
Kozel, R. (2006). Modern marketing research. Praha: Grada Publishing.
Luňáček, J., & Feldbabel, V. (2011). Elasticity of demand of the Czech consumer. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 61.
Mela, C. F., Gupta S., & Lehmann D. (1997). The long-term impact of promotion and advertising on consumer brand choice. Journal of Marketing Research, 34(2). doi: 10.2307/3151862.
Miranda, M. J., & Konya, L. (2007). Directing store flyers to the appropriate audience. Journal of Retailing and Consumer Services, 14(3). doi. 10.1016/j. jretconser.2006.05.002.
Novák, D. (2016). The spiral of action discounts in stores is accelerating. E15. Retrieved form http://zpravy.e15.cz/byznys/obchod-a-sluzby/spirala-akcnich-slev-v-obchodech-zrychluje-prestrelene-ceny-to-dovoluji-1300658.
Pieters, R., Wedel, M., & J. Zhang (2007). Optimal feature advertising design under competitive clutter. Management Science, 53(11). doi: 10.1287/mnsc. 1070.0732.
Powell, L. M., Kumanyika, S. K., & Igor, Z. (2016). Price promotions for food and beverage products in a nationwide Hample of food stress. Preventive Medicine, 86. doi: 10.1016/j.ypmed.2016.01.011.
Sano, N., Tamura, S., & Yada, K. (2014). Evaluation of price elasticity and brand loyalty in milk products. Procedia Computer Science, 35. doi: 10.1016/j.procs. 2014.08.213.
Seal, J.L., Regmi, A., & Bernstein, J. (2003). International evidence on food consumption patterns. US Department of Agriculture, Economic Research Service.
Sosland, M. (2008). Is price elasticity of demand for bread truly inelastic? Food Business News. Retrieved form http://www.foodbusinessnews.net/news/news% 20home/purchasing%20news/2010/12/is%20price%20elasticity%20of%20demand%20for%20bread%20truly%20inelastic.aspx?cck=1.
Szwajca, D. (2016). Corporate reputation and customer loyalty as the measures of competitive enterprise position – Empirical analyses on the example of Polish banking sector. Oeconomia Copernicana, 7(1). doi: 10.12775/OeC.2016.007.
Van Heerde, H., Leeflang, P. S., & Wittink, D. R. (2004). Decomposing the sales promotion bump with store data. Marketing Science, 23(3). doi: 10.1287/mksc.1040.0061.
Yin, R. K. (2003). Case study research: design and methods. Thousand Oaks: Sage Publications.