Uncovering causes of stagnating product sales of a healthy snack: A system dynamics group model building project in a food processing company

Andrijana Horvat, Henry Antoine Bartelet, David F. Andersen, Behzad Behdani and Pieternel A. Luning

Journal of the Operational Research Society, 2022, vol. 73, issue 8, 1667-1681

Abstract: Product life cycle (PLC) analysis studies patterns of sales over time and the reasons behind those patterns. Such analysis can be challenging because of the interconnected effect of technical product characteristics, marketing mix elements, and the environment (e.g. competition, consumers). Moreover, employees from different functions have different backgrounds and perceptions about the origins of patterns, which constrains mutual understanding and hampers decision-making. The group model building (GMB) approach can be an effective method to support teams in solving complex dynamic problems, such as a PLC analysis of product sales. This study uses a GMB approach and presents a system dynamics model, which supported cross-functional collaboration in analysing causes of stagnating product sales in the PLC of a healthy snack product in a food processing company. Through multiple GMB sessions with the company team, a system dynamics model was developed, and several strategies were analysed. The model has proven useful in explaining the reasons behind the sales stagnation and in studying possible interventions. Moreover, GMB was successful in increasing participants’ insight into the causes of the problem, improving communication, and creating a shared vision about the problem.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/01605682.2021.1924089 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tjorxx:v:73:y:2022:i:8:p:1667-1681

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/tjor20

DOI: 10.1080/01605682.2021.1924089

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald

More articles in Journal of the Operational Research Society from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().