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Shoprite In-Store Radio Advertising: Controlled Store Test Analysis Summary

Shoprite/Checkers instituted a program of in-store radio advertising. This included two weeks of advertising only, followed by the addition of shelf talkers/price tickets for the third week, a gondola end added to these in the fourth week, and a special selling price in the fifth and sixth weeks.

Advertising was relatively unusual in that corporate ads contained no advertised price reduction. The causal support is typical of these programs in the US and UK/Europe. The corporate and non-price reduction nature of the ads is not typical and therefore normally should generate less positive results than the more typical advertisement for specific products featuring reduced pricing information. Programs such as these generally achieve something in the range of 5-6% sales increases in the US and somewhat higher increases(probably due to the lack of such advertising proliferation) elsewhere.

AC Nielsen, Modelling & Analytics, has been retained to design and analyse a controlled store test to assess the efficiency of the program. Sales impacts on three products were assessed. These were All Gold Tomato Sauce 750 g, Glen Tea Tag-less 250 g Teabags and Snowflake Cake flour 2.5 kg. A sophisticated experimental design was employed to assure that only program impacts were being read. Remarkably strong positive sales results were observed. Sales increases were as follows:

While some week-to-week variation in results were expected, these were observed to be far lower than normal. The Test Panel outperformed the Control Panel in the vast majority of test period weeks. Results were not based on one or two high sales weeks. In the Snowflake case, weekly results were consistent at a level virtually never seen in such tests. The Test Panel outperformed the Control Panel at almost the same level in all six weeks.
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