EFFECT OF COUPON DEALS ON
DAIRY PRODUCT SALES
Madam Saiqa Imtiaz Asif
Ghulam Khadija Roll # 13
Shagef Akram Roll # 17
Amara Fayyaz Roll # 45
MBA (I) 2nd Semester
Department of Business Administration
2- BODY OF REPORT
For many year green Valley Dairies, Inc. was using a Coupon Plan to
promote its product, with the help of grocers. For this they applied the
technique of newspaper advertisement of cooperating grocers. This incentive
plan includes discount on nine categories of their products and this discount
cost will be covered by green valley themselves rather than the grocers.
They were sure that campaign would increase their sale, thereby overcoming
these costs. Management felt that the plan had been successful but they had
no hard facts. So, a research was conducted to evaluate the effects of
Coupon deals a dairy products sales. So a panel of 500 household were
selected. Each was requested to keep a diary of dairy products purchases and
sales figure were calculated before and after discount deals.
BODY OF THE REPORT
Dairy records were submitted by the respondents and they covered three
1- Two week period, ending one month before the discount period.
2- Two week period in which discount was offered.
3- Two week period beginning while month after the discount period.
This plan was made to determine short run and long run effects of this
Average qualities of dairy products purchased by house holds two-week
periods before, during and after coupon promotion.
Product group Before During After (During) v % age
% age (After)
Fluid Milk (Half gallons) 5.9 7.6 5.9 29% 0%
Cottage cheese (Pounds) 1.3 3.7 1.7 184% 31%
Yogurt (half Pints) 1.7 5.8 2.2 24% 29%
Ice cream (gallons) 0.7 1.5 0.9 114% 28%
Ice Milk (gallons) 0.4 1.4 0.6 250% 50%
Process cheese (pounds) 0.7 2.9 0.7 314% 0%
Natural cheese (pounds) 0.7 2.7 1.1 286% 57%
Butler (Pounds) 1.2 2.8 1.2 133% 0%
Cream Products (Pints) 1.2 1.9 1.2 58% 0%
30.3 15.5 120% 12%
1. FLUID MILK
The table shows the effect of discount on sales of fluid milk. The sale
before this incentive was 5.9 half-gallons by an average consumer.
During those two weeks in which discount was offered, Sales rose to 7-6
half-gallon which shows that discount offered has positive impact an
The data calculated after the discount offered was withdrawn, sales again
come to the original place of 5.9 half-gallons.
2. COTTAGE CHOOSE
The consumption of cottage cheese during the discount
period was increased and it raises the sales to 180% when the
discount was withdrawn. The level of increase was only 31%. It means
that after the withdrawn of discount sales continue to increase but at
The effect of discount an yogurt consumption was in upward
direction and sales figure increased to 241% to this Item However
after this discount period the sale of yogurt increased 29% as
compared to original sales.
4. ICE CREAM
114% increase in sales of ice cream was observed during the
discount period and sale-figure continued to grow 28% even after the
5. ICE MILK
The percentage of increase in sales of ice-milk was observed 114%
during the discount period while there was even 50% increase in sales
when the discount was withdrawn.
6. PROCESS CHEESE
There was 314% increase in sale of process cheese when the
discount was offered. However sales figure again came to original. Level
when the discount was withdrawn
7. NATURAL CHEESE
The consumption of natural cheese showed an increase
During discount period, which results in 286% increase in
sales.57% increase in sales was observed after the end of discount period.
8. CREAM PRODUCTS
Cream product showed 58% increase during discount period.
however after discount period sales again came to original position.
During discount period the sale of butter raise to 133% however sales again
come to original position after end of discount period.
After this we selected one item fluid milk from these items category and
calculated the relationship between demographic characteristics and effect of
coupen discount on sales. Necessary calculations are as below:
Total effects of coupen discount promotion on sales of fluid milk by
demographic characteristic percentage change from before period.
Demographic During After
Grade school +58 +27
High school +28 +8
College +20 -1
Labour and crafts +41 +5
Professional and clerical +14 -7
Farmer +41 -9
Retired and unemployed +69 +17
White +27 -3
Non-white +68 +14
Wife employed +54 +7
Wife unemployed +6 0
Less than 2,500 +28 -1
2500-49,999 +26 -2
50,000-49,99999 +28 +9
500,000-999,999 +39 +17
1,000,000 and over +33 +13
INCOME OF HOUSEHOLD
$30,000 and over +43 +4
$20,000-$29,999 +17 +2
$15,000-$19,999 +21 +1
$10,000-$14,999 +8 +3
Under $10,000 +49 0
We covered almost all the demographic characteristics of our target
population in this research. The objective was to find how different
categories of population respond towards the some discount offered on the
sale of certain dairy products.
The consumption of fluid milk by grade school children was increased and it
results in 58% increase in sale during discount period and 27% increase was
observed after withdrawn of discount 28% increase in sales was observed
during the increase the consumption of high school students and this
category has contributed to 8% increase in sales even if the discount was
However during the discount period college students increased the
consumption by 20% but after discount they reduced the consumption of
fluid milk and which results in 1% decline in sales figure.
In this category the response of people form different occupation towards
incentive system was observed 41% increase in sales was observed during
discount period because of the increase consumption from people in
professions of labour and farming. However after discount period 5%
increase in sales was contributed by labourers and craftsman while farmer
decrease these consumption by 9%. During discount period professionals
and clerical, retired and unemployed increased the consumption of fluid
milk, while after the discount 7% decrease in consumption was observed
from professionals and clerical people while retired and unemployed people
showed 17% increase in consumption compared to consumption before
New white people show positive response towards sales during the discount
period. However after the discount period white people reduced their
It both the members of the family are employed then more increase in sales
was observed as compare to family where wife is unemployed.
The area having population between 500,000 – 499,999 showed more
response towards increase in sale during discount.
INCOME OF HOUSEHOLDS
People having income level under $10,000 available the maximum discount
opportunity and showed 49% increase in sales.
After collection and analysis we conclude that overall effect of discount on
sales was in direction and it increase the total sale figure to 120% during the
discount and even after the discount was withdrawn 12% increase in sales, in
sales, compared to the original sales before discount was observed which
shows that discount has the positive impact an future sales.
726% increase in sales was observed from all the demographic
characteristics of population during the discount and 10% increase in sales
was even observed after the discount.
Green Valley dairies should continue such kind of incentive plans
in future which will help in increasing their revenues and in
return their profits will also increase.
Sales of Dairy Products
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Sales of Dairy Products
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