A business leader in the CPG industry wanted a Trade Promotion Management System that micro-targeted every retailer and customer to boost productivity and increase results from trade promotions. Check out this short case study on how Decision Point experts resolved this.
01. Business Challenge
Optimizing Trade Promotional deal processes is a significant part of business for any CPG company, as most of the marketing spends go into Trade Promotion.
In order to offer Trade Promotional deals & incentives, the client wanted to go beyond conventional methods and technologies. They knew the iterative procedure of imprecise guesswork to find the ideal promotional deals was no longer feasible as it was costing them substantial time and effort.
02. Approach
After a series of conversations, Decision Point experts suggested creating a hyper-personalized initiative management engine, which would help increase sales and yield better trade promotion ROI for the company.
To do so, we relied on a variety of factors, including location, peer learning, channel relevance, promotion mechanics, etc. to construct a classification model that would prioritize trade promotions and then fine-tune the model using an ensemble model. This would then yield the best recommendation. Clients can use this analytics engine to:
03. Impact
This Hyper-personalized Initiative Management Engine allows clients to visualize the impact of Trade Promotions. This helped the client to make smarter decisions and ultimately, bring success to the business. After the implementation, the client saw the following impact:
- 20% increase in the hit rate of the promotion
- 20% cost reduction 10% growth in overall revenue
Key Highlights
- Developed a Precision at scale
- Provided Sales Force with custom actions for each store
- Increased Sales-Rep productivity
- High customer engagement
