The Feldwick Factor: Long-term effectiveness of discounted beer promotions

Responding to a question from a marketing executive from Grolsch, Paul Feldwick considers whether the long-term discounting of beer is an effective marketing strategy.

The Feldwick Factor: Long-term effectiveness of discounted beer promotions

Paul Feldwick

Is there any (semi) scientific evidence around the long-term effectiveness of discounted beer promotions?

Tom Wilms, manager, strategy, media and insights marketing, Royal Grolsch NV

There certainly is some science on this, much of it based on the work of the late Andrew Ehrenberg and his colleagues, and helpfully summarised in chapter 10 of Byron Sharp's recent book, How Brands Grow.The conclusions are that price promotions don't usually bring in new buyers, so they aren't an engine of brand growth. They do bring in infrequent buyers...

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