The 'Retailing Revolution' in Ireland has generated
many problems and opportunities for manufacturers
and distributors. The development of mass
merchandising associated with the rapid increase in
self-service outlets, supermarkets and voluntary
chain groups has caused a virtual collapse in efforts
at retail price maintenance by manufacturers. Retail
prices are now largely determined by the outlets and
pricing policies of the manufacturers are under
constant pressure.
This article describes a marketing experiment
which we believe to be the first of its type in Ireland.
This controlled experiment was an attempt to test
consumer reaction to price and display changes of a
specific consumer product, a branded aerosol air
freshener, within the limits imposed by time and the
variations allowed by the co-operating grocery chain
store.* We would like to express our appreciation to
this group for allowing us to use their retail outlets
in the test. The manufacturing company which cooperated
in the experiment by allowing the use of its
products, had introduced the aerosol package to the
Irish Market in 1953, and since then it had become
an important part of their product line. Originally,
distribution had been mainly through retail pharmacies
where the suggested retail price had been
maintained. However, the product was also suitable
for distribution through the grocery trade, and the
increase in supermarkets and voluntary groups in
Ireland during the early '60s made these outlets very
important. In these types of stores the retail price of
aerosols was generally substantially below that
suggested and this had caused serious repercussions
in other channels of distribution.