How Point-of-Sale Marketing Mix Impacts National Brand Purchase Shares Across Stores

Purchase shares of major national brands in consumer packaged goods industries vary substantially across stores, both between geographic markets and and across stores within markets. Furthermore, store-specific POS marketing mix factors (such as price, assortment share, feature, and display, and promotion intensity) show similar variation across stores. This suggests that POS marketing mix factors may be responsible for the observed dispersion in purchase shares. Shown below are examples from toilet paper brand: Charmin. We can clearly see that there are significant dispersion of purchase shares across stores. In addition, dispersion in purchase shares across stores are highly correlated with dispersion in assortment shares across stores.

From the large scale analyses, we find that on average, approximately 56% of variations in national brand purchase shares can be attributed to this five POS marketing mixes. Moreover, we also find that asymmetric POS marketing mix effectiveness (especially in price), which favors brands closer to their city-of-origins, is another underlying mechanism behind observed differences in purchase shares across geographic markets.

For more details, please refer to our POS paper (together with Prof. Raphael Thomadsen), which was accepted in Management Science (October, 2014). The link is shown below.

https://www.academia.edu/4509938/When_Push_Comes_to_Shelf_How_Point-of-Sale_Marketing_Mix_Impacts_National_Brand_Purchase_Shares