Promotional Strategies of Brand Leaders, Challengers, and Followers

Sales promotion tools are assuming increasingly im- portant roles in brand marketing strategies. A conceptual promotion model is proposed to capture the similarities and differences in the price and display based promotional practices and their effects on market shares for brand leaders. challengers and followers. Using a two stage econometric analysis, we observe a clear gradation in the effects of promotions on the market shares of these three categories of brands, respectively. The way in which price-promotion and dis- play decisions are coordinated is also found to be different for these three brand categories.