It’s promotion time!
Over the course of a few weeks, we have gathered the pricing history of a best-selling sports game from two major markets; UK and Germany. It has been interesting to see the different ways that markets approach promotion periods. Two major category and specialist resellers from each market were used in order to compare their strategic promotion approaches.
Each coloured line represents a different reseller. The orange line illustrates two major category resellers in the UK and Germany, whereas the purple compares two major specialist resellers from each market. In the UK graph, it is prominently clear that both resellers approximately follow the same promotion period pattern. This means the UK follows a promotional tactic of promoting the product almost simultaneously across major resellers. Apart from the inexplainable anomaly between May and July, which could be related to the resellers stock issues.
On the other hand, Germany has its own method which is seen from the pattern each line independently follows. When both graphs are compared against each other, German resellers' independent sequences become more apparent from the various pricing spikes. Germanys resellers begin with a short promotion tempo, with a higher frequency. In comparison to the UK who starts with a slower tempo and a gradual frequency in promotions. This conveys how German resellers offer a promotion multiple times or at least once a month.
However, as the year progresses, both markets seem to adapt to new promotion strategies. German resellers promote frequently as we had established, yet their promotion periods begin to as long as UK resellers. According to the graph, the longest promotion duration in Germany was upheld for 3 months from June to August. This is a large increase from the average promotion duration in Germany, which generally lasts less than one month. Another example is, from April to May the major German specialist reseller implemented four promotions in total. In comparison, the UK resellers only obtaining one promotion simultaneously.
A striking detail outlined by the graph was, from May to July, a UK category reseller drastically decreased their promotion duration, before returning to their usual tempo. On the other hand, in that same time frame the German category reseller executed longer promotion periods, so it is as though both markets swap strategies.
This leads us to dispute which market generated more sales for the product throughout the year - the resellers who frequently changed prices or the one following a clear pattern?
Who generates the most sales?
It is hard to determine who generated more sales from the graph, however, we clearly see that both countries have different marketing approaches. They both also display a similar pricing correlation restricting their promotions between €19-70. Thus, this brings us to the question of how Germany follows a different procedure, yet still correlates with the UK's pricing range? Could this be due to Germany possibly generating more sales for individual resellers?
Which market is satisfied with their performance during promotion periods?
If they had access to pricing insights, they would be able to identify which periods had been most effective in their marketing approaches. As well as, determining whether having multiple or fewer promotions in one month is more beneficial.
For example, if the UK market had generated more sales than Germany; Germany’s marketing team can proactively alter their campaigns to match the simultaneous promotion tactic across different resellers, to match the performance of their competition.
What would the client's opinion be?
The compelling data leaves us wondering what the client would determine as a better marketing strategy in both markets. On one side, having a simultaneous promotion period across UK resellers would be an organised approach. However, Germany’s resellers have more frequent promotions compared to the UK, which could possibly boost sales.
One of the main priorities for the client would be their sales for the popular game, and both markets have the same pricing correlation for the same game. Yet their approach is another factor coming in to play.