Sales promotion

Assessing the effectiveness of sales promotion and special price campaigns for organic food products on the market

Research project within the framework of the Federal programme Organic Agriculture

Programme Homepage: http://www.bundesprogramm-oekolandbau.de/


Head of project

Prof. Dr. Ulrich Hamm
Dept. of Agricultural and Food Marketing
Faculty of Organic Agricultural Sciences
University of Kassel
Steinstrasse 19
37213 Witzenhausen

Contact person

  • Sandra Wild

Project partners

  • CMA – Central Marketing Company for German Agriculture Ltd
  • synergie Unternehmensberatung – Consultants for the Organic Market
  • Bormann & Gordon – Consultants for Category Management, Outlet and Shopper Research

Duration

September 2004 to August 2006


Aim of the research project is to examine the effects of sales promotion activities of organic products at the point of sale. Within the framework of the project carried out in cooperation with the CMA (Central Marketing Company for German Agriculture Ltd.), the Consultancy for the Organic Market synergie and the Consultancy Bormann & Gordon, it mainly concerns the recording of “hard data” with which measures which sales and turnover can be achieved in certain groups of products. The implementation of the sales promotion measures is carried out by the CMA parallel in organic food shops and in general food retailers. Next to surveying possible sales effects of the sales promotion on the test products, substitution or cannibalism effects within a group of products and towards the conventional and organically produced competition products are to be investigated to reach conclusions on the suitability of the measures for an increase of the total sales and turnover. A further aim is to investigate the relevance of the measures to increase sales for the group of the occasional buyers of organic products. Additionally, accompanying the campaigns and the recording of the sales figures, the perception of the activities by the consumer and the consumer attitude within the frame of a verbal ‘after purchase’ questionnaire in the general food shops are investigated. This enables the supply of backgrounds from the results for the ‘hard data’ as well as targeted measures for a stronger commitment of occasional buyers of organic food products and the winning over of non-organic-buyers.