Get transparency about the effectiveness of trade promotions and derive mechanisms and processes how to enable improvements
Key Customer Question(s)
In a highly competitive retail landscape such as Germany, consumer promotions are important and trade spend is a key tactical instrument to attract shoppers sustainably. However, in Germany, only part of the promotional spend is recorded, as most of the promotions are covered by contractual spend (other terms or business building terms). With lack of spending transparency and data spread across various systems, insights on promotion effectiveness were missing profit.
Our Approach
- We built the fact base and allocated trade terms to promotional events for a promotion deep dive analysis (ex-post) to obtain full transparency about the effectiveness of the client’s promotions across all defined categories and customers
- We evaluated uplift and ROI results per category and customer to identify levers for promotion success and derive recommendations for future promo programs
- We quantified impacts of the identified measures through calculation of gross profit opportunities and validated these opportunities in the organization together with key account management. Finally we prepared a playbook for customer negotiations
Resolution / Outcome
11mio.€
gross profit increase through promotion efficiency recommendations across customers and categories.
Offering: Trade Promotion & Optimization
Industry: Consumer Products
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