- The broiler industry in the United States has undergone tremendous change since the end of World War II. Several structural
changes in the industry facilitated the widespread adoption of new
technology. Improvements in feeding, breeding, and managing made
production more efficient. Extensive use of contract growing and
production financing accompanied the increase in broiler production.
The largest expansion of production took place in the South Atlantic
States and the South Central States. Rapid transportation, combined
with lower production costs, enabled southern fryers to compete
favorably with Oregon-grown fryers. To meet competition from
broiler growers in other states, the Oregon Fryer Commission has
undertaken a modest promotion program. It would be desirable for
the Oregon Fryer Commission to know the most advantageous uses
for its limited amount of promotion dollars.
This study was undertaken to determine production costs of a
few selected broiler enterprises in Oregon, and the effectiveness of
four types of in-store promotional material in increasing fryer sales.
The growers selected for the cost of production study appeared
to operate three of the better broiler enterprises in Oregon. Average
costs for each grower were calculated from data of the last four
broods marketed in 1963. Total cost per pound of broiler marketed
by these growers was 17.94 cents, 18.64 cents, and 16.90 cents.
Assuming each grower received the average Oregon price of 17 cents
per pound in 1963, the first two growers would have lost $830 and
$4,110 per brood, while the third grower would have made a profit of
$100 per brood.
In the promotion study, two posters, a banner, and a gondola
were employed as in-store promotional material. The sample stores
were selected from two food chains in the Portland metropolitan area
and one food chain in the Salem area. The sample size of Chain A
was 1Z stores, while the sample size of both Chain B and Chain C
was six stores. Store selections were based on large volume of
fryer sales and the location of stores with respect to different socioeconomic
The study was divided into three periods: two weeks of prepromotion,
four weeks of promotion, and two weeks of postpromotion.
The purpose was to determine the number of pounds of fryers sold
weekly in each store during the three periods. Increases or decreases
of fryer sales for each store were determined by comparing
fryer sales during the promotion and postpromotion periods to fryer
sales during the prepromotion period. To determine promotion effectiveness,
changes of fryer sales in stores with promotional material
were compared to changes of fryer sales in check stores with no
It appeared that promotion by Fryer Commission poster and
revised Fryer Commission poster during one, two, and four-week
intervals was similarly effective. At the same time, promotion
effectiveness of banners was considerably less. An elaborate,
colored, pictorial poster appeared more effective in promotion than
a simple, low-cost banner. Emphasizing the word “Oregon” seemed
to have little effect in increasing fryer sales. Enlarging fryer display
space by the use of gondolas increased fryer sales during short
time periods. Carry-over effects of promotion seemed to be slight.
Featuring fryers at reduced prices during a week increased
sales volume significantly. Sales volume following a week of small
price reductions returned to its approximate prepromotion level.
However, sales volume following weeks of large price reductions was
slightly below its prepromotion level. This presents a question of
the effect of price specials on total volume of fryer sales and on
profits over a longer period of time for retailers, processors, and