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A leading footwear company needed profitable recruitment of new customers. Check out how Decision Point experts created a segmented promotion strategy during end of season sales for the same.
01. Business Challenge

Due to increasing rentals and grim economic scenario, retail sector in India is facing significant challenges. Companies must compete heavily to convert consumers with innovative strategies to survive and succeed. Price promotion strategies have become very important for brands to drive footfalls. 

Our client, a leading high end footwear retailer, was faced with the above challenges and wanted to: 

  • Understand the impact of historical price promotions  
  • Drive incremental sales  
  • Design a promotion strategy for profitable recruitment of new consumers during End of Season Sales (EOSS) 
02. Approach

Decision Point followed a 3-pronged approach to the Business Problem – 

Based on historical participation in promotion Decision Point worked out the System impact in terms of Customers, Profitability, and Inventory

After understanding historical performance and combining with current business objective, Decision Point laid out the system priorities for participation in this EOSS 

Decision Point adopted a 3 stepped analytical approach to develop a granular store level plan – 

  • Article and Inventory Selection – CART Segmentation to select SKUs to create maximum system impact in terms of profitability and customer acquisition 
  • Promotion Configuration – Spend Sensitivity analysis to divide selected SKUs across outlets, assign discounting levels and assign phasings across the weeks of EOSS period 
  • Impact Assessment – Simulations to generate the estimated impact on the system in terms of various parameters including Gross Profit %, Inventory Cost Reduction etc. 


03. Impact

Based on our recommendation, client was able to: 

  • Redefine promotion time periods  
  • Prioritize SKUs and Outlets with a segmented approach  
  • Generate higher lift in off takes vs. spends  
  • Acquire a higher number of new customers. 
Key Highlights