Identifying demand factors for promotional planning and forecasting: a case of a soft drink company in the UK

2.50
Hdl Handle:
http://hdl.handle.net/10547/251120
Title:
Identifying demand factors for promotional planning and forecasting: a case of a soft drink company in the UK
Authors:
Ramanathan, Usha; Muyldermans, Luc
Abstract:
In recent years, promotions have become a common practice in many retail outlets. Usually these promotions are planned collaboratively by manufacturers and retailers, who jointly agree on the products on promotion, the types of promotions, the price reduction and the timing of promotions. But, the sales can also be influenced by other factors such as weather, holiday periods and festivals, which are sometimes overlooked. In this research, we identify a set of demand factors influencing the sales of a leading soft drink company in the UK. We relate the demand factors with the company's actual sales to gain more insight into the underlying demand structure. We use structural equation modelling for this purpose. The results confirm the role of the promotional factors in the sales uplift for all products. However, the other demand factors are found influential only for some products. Our results suggest different demand structures for different product families, and our findings confirm the importance of collecting and exchanging the proper supply chain information. Our approach may also assist managers to better plan, forecast and promote different products in collaboration with other supply chain partners.
Citation:
Ramanathan, U., Muyldermans, L. (2010) 'Identifying demand factors for promotional planning and forecasting: A case of a soft drink company in the UK' International Journal of Production Economics 128 (2):538-545
Publisher:
Elsevier
Journal:
International Journal of Production Economics
Issue Date:
Dec-2010
URI:
http://hdl.handle.net/10547/251120
DOI:
10.1016/j.ijpe.2010.07.007
Additional Links:
http://linkinghub.elsevier.com/retrieve/pii/S092552731000232X
Type:
Article
Language:
en
ISSN:
0925-5273
Appears in Collections:
Business and Information Systems Research Centre (BISC)

Full metadata record

DC FieldValue Language
dc.contributor.authorRamanathan, Ushaen_GB
dc.contributor.authorMuyldermans, Lucen_GB
dc.date.accessioned2012-11-06T08:49:04Zen
dc.date.available2012-11-06T08:49:04Zen
dc.date.issued2010-12en
dc.identifier.citationRamanathan, U., Muyldermans, L. (2010) 'Identifying demand factors for promotional planning and forecasting: A case of a soft drink company in the UK' International Journal of Production Economics 128 (2):538-545en_GB
dc.identifier.issn0925-5273en
dc.identifier.doi10.1016/j.ijpe.2010.07.007en
dc.identifier.urihttp://hdl.handle.net/10547/251120en
dc.description.abstractIn recent years, promotions have become a common practice in many retail outlets. Usually these promotions are planned collaboratively by manufacturers and retailers, who jointly agree on the products on promotion, the types of promotions, the price reduction and the timing of promotions. But, the sales can also be influenced by other factors such as weather, holiday periods and festivals, which are sometimes overlooked. In this research, we identify a set of demand factors influencing the sales of a leading soft drink company in the UK. We relate the demand factors with the company's actual sales to gain more insight into the underlying demand structure. We use structural equation modelling for this purpose. The results confirm the role of the promotional factors in the sales uplift for all products. However, the other demand factors are found influential only for some products. Our results suggest different demand structures for different product families, and our findings confirm the importance of collecting and exchanging the proper supply chain information. Our approach may also assist managers to better plan, forecast and promote different products in collaboration with other supply chain partners.en_GB
dc.language.isoenen
dc.publisherElsevieren_GB
dc.relation.urlhttp://linkinghub.elsevier.com/retrieve/pii/S092552731000232Xen_GB
dc.subjectpromotionsen_GB
dc.subjectcollaborationen_GB
dc.subjectdemand structureen_GB
dc.subjectstructural equation modellingen_GB
dc.titleIdentifying demand factors for promotional planning and forecasting: a case of a soft drink company in the UKen
dc.typeArticleen
dc.identifier.journalInternational Journal of Production Economicsen_GB
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