The most effective promotion: A comparative study across Latin American markets

Juan Andrés Tello, Gerard Loosschilder and Leonardo Solano
SKIM, Costa Rica

Introduction

LATAM-based companies, whether local or multinational, are usually pressed to do more with less, managing frugal operations with ever tightening budgets. Marketing managers are directed to allocate their marketing dollars more efficiently to instigate change in what consumers choose and ultimately to draw incremental users to their brands – all while making a profit. Promotions are a popular choice among marketers to accomplish this because they are prevalent, visible, and relatively easy to execute. A wide array of promotions is commonly used, e.g. BOGO bundles, rebates, price discounts and free gifts. However, the available body of knowledge on promotion effectiveness is often times incomplete, non-structured, disaggregate and anecdotal. This makes it challenging for marketers to select which promotions to utilize for their business.