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Design A Marketing Experiment Sample Report of SNICKERS

This document outlines a marketing experiment to test the effects of a price promotion for Snickers chocolate bars. The experiment will involve randomly dividing 50,000 people in Barcelona into a test group that receives a 20% price reduction and a control group that does not. Intention to buy will be measured before and after the price promotion week to calculate sales lift. Issues include seasonal effects on chocolate sales and potential impacts of external factors during the experiment window. An alternative online experiment is proposed to test multiple price discounts across global markets.

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aboulaye ouattara
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21 views2 pages

Design A Marketing Experiment Sample Report of SNICKERS

This document outlines a marketing experiment to test the effects of a price promotion for Snickers chocolate bars. The experiment will involve randomly dividing 50,000 people in Barcelona into a test group that receives a 20% price reduction and a control group that does not. Intention to buy will be measured before and after the price promotion week to calculate sales lift. Issues include seasonal effects on chocolate sales and potential impacts of external factors during the experiment window. An alternative online experiment is proposed to test multiple price discounts across global markets.

Uploaded by

aboulaye ouattara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Design a Marketing Experiment Sample Report of SNICKERS

Introduction

This report aims to design a marketing experiment for one of the strongest brands in the
confectionery industry, especially when it comes to chocolate bars. I’m talking about
Snickers. The main product of the brand consists of nougat topped with caramel and
peanuts, enrobed in milk chocolate. This brand belongs to the American company Mars,
Incorporated and has annual global sales of $2 billion. The marketing experiment
consists of a price promotion campaign for which will be applied the before-after design
experiment. Price promotion is a tool to influence consumer purchase; but because
price is such a subject variable. I’m force to use the before-after experiment (this kind of
experiment takes into account the pre-existing differences between the control and the
test groups).

Experiment Design

In this experiment, the independent variable is a price promotion in the form of a 20%
reduction in the unit price. The dependent variable observed here is intention to buy.
The experiment will be run in Barcelona (Spain). It will involve 50.000 people that
belong to the target consumer segment of the brand Randomly those will be divided into
two groups of 25.000 individuals – the test group and the control group. I believe this
sample, due multicultural environment of the city, will be culturally diverse and big
enough so that it will be statistically significant to draw conclusions of relevance for the
European markets of the brand.
The test will occur in February, during the two weeks. For the “before” stage, the
intention to buy the chocolate bar will be recorded for both control and test markets for
the price of 1 euro. The “after” stage of the experiment will be running in the following
week, with the same price (1 euro) for the control group and the new price (80 cents) for
the test group. The change in sales during the experiment will be then used to calculate
the lift in sales.
The experiment adheres to three rules of causality (change in the marketing mix
produces change in intention to buy; no increase in the intention to buy when there is no
change in marketing mix; time sequence (first manipulation in price, then inquiry of
intention) but can’t assure that an external factor won’t mess with the customer’s
intention to buy the product.
Anticipated Issues

Chocolate is a seasonal product. Students “abuse” it when it comes to final exams, it is


used as a gift during the Christmas season and there are brands that simply don’t sell
them during the summer time.Therefore, the results cannot be generalized without
reservations.
Any other external factor during implementation such the entry of a new brand/product
or a competitive move by an existing competitor could adversely affect the field results.
If a new brand is advertising a really nice chocolate for a little price, the consumer will
anchor that price and might think that the reduction of the Snicker’s bar wasn’t enough
to make them want to buy it.
Nevertheless, we can compare the test group with the control group to calculated the
sales lift.
Furthermore, the vast number of people in both groups (50.000 total) will make external
personal factors (e.g., if a respondent loses a job, win the lottery, etc.) almost
insignificant.

Experiment 2.0

Another version of the experiment can be through a web experimentation – full factorial
design.
In this case we could invited people from all over the world and thus analyze the results
for different markets. Plus, we could test different levels of discount (-20%, -30%, 50%,
etc.) and different framings of the discount (-50%, 50% free, take 2 pay 1, etc.). On top
of that, the target of the brand (and consequently of this experiment) consists of people
that have access and use a computer/internet daily.
This version of experiment is generally cheaper and quicker to implement than the
offline faceto-face questionnaires. However, if this experiment is to be done worldwide
it may not be that cheap or simple since the questionnaires have to be translated into
different languages and take into account the laws of the retail markets of each country
(people in charge should know the “rules” of price promotions for each market).
These pros and cons need to be taken into account when deciding which experiment to
choose from. One thing is certain - this experiment adaptation would offer the optimal
combination for each market.

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