A Global CPG company reached out to Decision Point to institutionalize a Trade Spend Optimization process within the modern retail channel.
01. Business Challenge
Modern retail channels are amongst the most critical levers for growth for many of the large CPG companies. However, the growth in the channel comes at a significant cost as the CPG companies need to spend aggressively on consumer promotions & price-offs within the channel to drive growth.
The critical needs that were a challenge to our client, a global CPG company, were:
- Profitable growth in the channel as a key strategic priority
- Optimizing the consumer promotion spend in the channel
- Planning segmented promotions across customers, regions & categories
02. Approach
To address these needs, Decision Point established a Center of Excellence (CoE) for the client to optimize the trade spends. Decision Point experts implemented the following steps to address the client’s requirements: –
The client has institutionalized a robust promotion planning process by leveraging insights from the Center of Excellence. This enables all the key decision makers within the system to invest in the most optimal plans for growing the modern retail channel.
03. Impact
Through the Center of Excellence, the client has enjoyed the following results:
- Made significant improvements to channel profitability.
- Optimized the consumer promotion spend in the channel
- Put in place a system to deliver long-term, sustainable profitable growth in the channel.
Key Highlights
- Scientific Modelling Approach
- Identify high performing Promotion
- Identify critical KPI for Promo success
- Develop Promotion Strategies
