Choosing between two strategies to generate primary demand
Problem
As the market leader in Colombia, Pastas Doria wanted to increase the per capita consumption of pasta to increase sales and created a dedicated budget for the effort.
Two communication strategies emerged as potential avenues to solve the problem but the company was not sure which one to pursue:
Strategy 1:
Encourage the Association of Pasta Makers in Colombia to collect money from all the players in the industry to fund a campaign to increase primary demand of pasta by replacing other popular side dishes with pasta. It would be an intense and concentrated effort over a short period of time.
Strategy 2:
Invest the money that would otherwise go to Strategy 1 to extend the current Doria brands’ advertising efforts that already encouraged primary and secondary demand. It was a less intense but more continuous effort.
Scenario Simulation
A computer model of the problem was created to simulate the different strategies over a period of 12 months.
Strategy 1 generated a considerable amount of sales during the first 6 months but the per capita consumption of pasta went back to its previous level shortly after the end of the campaign as people went back to their usual consumption habits.
Strategy 2 generated fewer sales at the beginning of the year but ended up increasing the per capita consumption in a sustainable way.
Results
The company decided to invest the additional money in extending the existing advertising campaign increasing their reach and frequency levels.