Does marketing effectiveness differ for healthy versus unhealthy food? A study on demand patterns and marketing mix effectiveness of brands that differ in levels of healthiness

Does marketing effectiveness differ for healthy versus unhealthy

food?

A study on demand patterns and marketing mix effectiveness of

brands that differ in levels of healthiness

Student:

Irene Kools - S2362759

Supervisor Second Supervisor

Table of Content

1.  Problem Statement

2.  Research Objectives

3.  Conceptual Model

4.  Methodology

5.  Results & Discussion

Problem Statement (1)

Food marketers are:

ü 

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ü 

Problem Statement (2)

The “research gap”

What do we know about healthy versus unhealthy product marketing effectiveness?

Research Objectives

Systematic comparison of products with different levels of healthiness on:

Q1. Intrayear category demand cycle (category level)

Q2. Marketing effectiveness of advertising and price (brand level) Q3. Intrayear demand influence on marketing effectiveness

advertising & price (brand level)

Q4. Advertising & price cycles comovement with intrayear demand cycle (brand level)

Conceptual Model

Methodology (1)

Dataset: 4 years – week 29 1994 through week 28 1998

I created 3 overarching categories that differ in levels of healthiness from the non-alcoholic beverage class

Methodology (2)

Christiano Fitzgerald Filter – Intrayear demand / pricing / advertising cycles

Q1. Intrayear demand cycle:

1) Model free insights 2) Pearson correlation 3) Granger causality

Q2/Q3. Marketing effectiveness:

1) Error correction model 2) Added Z method

Q4. Advertising & price cycle – comovement intrayear demand cycle:

Results & Discussion (1)

Results & Discussion (2)

Q2. 1) Advertising effectiveness is limited 2) Pricing sensitivity is high

Q3. 1) Limited impact of intrayear demand on advertising 2) Omit interaction with price due to multicollinearity

Managerial Implications

Healthy sellers need to:

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