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.
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 costing them substantial time and effort and were no longer a feasible option.
As a result of a series of conversations, we 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:
This Initiative Management Engine allows clients to visualize the impact of Trade promotions, helping them in executing smarter decisions and ultimately, bringing success to the business. Post implementing the Initiative engine the client saw:
- An increase in the hit rate of the promotion by 20%.
- Cost reduction by 20%
- Growth in overall revenue by 10%.