TY - JOUR
T1 - Product promotional strategies in supermarkets and their effects on sales
T2 - A case study of breakfast cereals and drinks in New Zealand
AU - Rosin, Magda
AU - Young, Leanne
AU - Jiang, Yannan
AU - Vandevijvere, Stefanie
AU - Waterlander, Wilma
AU - Mackay, Sally
AU - Ni Mhurchu, Cliona
N1 - Funding Information: This was an investigator‐initiated study funded by a Health Research Council of New Zealand programme grant (18/672). The Health Research Council ( http://www.hrc.govt.nz/ ) had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript. This analysis was part of a larger study, co‐designed with Woolworths New Zealand (NZ), to assess the effect of a shelf placement intervention on sales of healthier and less healthy breakfast cereals and drinks in supermarkets, during which a non‐financial partnership was established between the research team and Woolworths NZ. A collaboration agreement was signed between Woolworths NZ and the University of Auckland outlining intellectual property contributions, joint responsibilities, communication processes, and publications and confidentiality clauses for the duration of the study. Woolworths NZ did not provide any direct funding, although they did provide in‐kind support (in the form of staff time, extraction of sales data, and access to six stores for data collection). Other than extraction of sales data, Woolworths NZ had no role in data collection and analysis, decision to publish, or preparation of the manuscript. Funding Information: This was an investigator-initiated study funded by a Health Research Council of New Zealand programme grant (18/672). The Health Research Council (http://www.hrc.govt.nz/) had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript. This analysis was part of a larger study, co-designed with Woolworths New Zealand (NZ), to assess the effect of a shelf placement intervention on sales of healthier and less healthy breakfast cereals and drinks in supermarkets, during which a non-financial partnership was established between the research team and Woolworths NZ. A collaboration agreement was signed between Woolworths NZ and the University of Auckland outlining intellectual property contributions, joint responsibilities, communication processes, and publications and confidentiality clauses for the duration of the study. Woolworths NZ did not provide any direct funding, although they did provide in-kind support (in the form of staff time, extraction of sales data, and access to six stores for data collection). Other than extraction of sales data, Woolworths NZ had no role in data collection and analysis, decision to publish, or preparation of the manuscript. Publisher Copyright: © 2023 The Authors. Nutrition & Dietetics published by John Wiley & Sons Australia, Ltd on behalf of Dietitians Australia.
PY - 2023/11
Y1 - 2023/11
N2 - Aims: To examine the frequency of promotions on breakfast cereals and drinks in a major New Zealand supermarket chain, determine the healthiness of promoted versus non-promoted products, and quantify the effects of promotions on sales. Methods: Weekly data on product promotions and sales were collected in six Auckland supermarkets for 198 breakfast products over 12 weeks. The healthiness of products was determined using the Health Star Rating system, and the effect of promotions on sales was estimated using linear mixed models. Results: On average, 47% of breakfast products in a given week were promoted using on-shelf tickets, 12% in weekly mailers, and 9% via promotional displays. The healthiness of promoted and non-promoted breakfast products was comparable. In relation to weekly sales of non-promoted products, all three promotional strategies had substantial (2 to 2.5 times higher sales) and statistically significant (P < 0.001) effects on product sales. Conclusion: Promotions are frequently used and effective at increasing sales. Marketing strategies focusing solely on promoting healthier products could be an important nudging strategy to improve the healthiness of supermarket food purchases.
AB - Aims: To examine the frequency of promotions on breakfast cereals and drinks in a major New Zealand supermarket chain, determine the healthiness of promoted versus non-promoted products, and quantify the effects of promotions on sales. Methods: Weekly data on product promotions and sales were collected in six Auckland supermarkets for 198 breakfast products over 12 weeks. The healthiness of products was determined using the Health Star Rating system, and the effect of promotions on sales was estimated using linear mixed models. Results: On average, 47% of breakfast products in a given week were promoted using on-shelf tickets, 12% in weekly mailers, and 9% via promotional displays. The healthiness of promoted and non-promoted breakfast products was comparable. In relation to weekly sales of non-promoted products, all three promotional strategies had substantial (2 to 2.5 times higher sales) and statistically significant (P < 0.001) effects on product sales. Conclusion: Promotions are frequently used and effective at increasing sales. Marketing strategies focusing solely on promoting healthier products could be an important nudging strategy to improve the healthiness of supermarket food purchases.
KW - breakfast
KW - cereals
KW - marketing
KW - prices
KW - supermarkets
UR - http://www.scopus.com/inward/record.url?scp=85149787846&partnerID=8YFLogxK
UR - https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85149787846&origin=inward
UR - https://www.ncbi.nlm.nih.gov/pubmed/36843241
U2 - https://doi.org/10.1111/1747-0080.12800
DO - https://doi.org/10.1111/1747-0080.12800
M3 - Article
C2 - 36843241
SN - 1446-6368
VL - 80
SP - 463
EP - 471
JO - Nutrition and Dietetics
JF - Nutrition and Dietetics
IS - 5
ER -