Institutionalizing a trade spend optimization process within the modern retail channel for a global CPG company
01. Business Challenge
Modern retail channel is amongst the most critical levers for growth for many of the large CPG companies in India. 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. For our client, a global CPG company, profitable growth in the channel was a key strategic priority. Therefore, optimizing the consumer promotion spend in the channel and planning segmented promotions across customers, regions & categories was a critical need.
Decision Point established a Center of Excellence (CoE) for the client to optimize the trade spends. Decision Point develops & manages an integrated data repository for all the consumer promotion spends at a region x customer x SKU level and provides analytics & insights on spend elasticity at the most granular level helping the client plan & develop the most optimal promotion mix for the channel.
Leveraging the insights from the COE, the client has institutionalized a robust promotion planning process which enables all the key decision makers within the system to invest behind the most optimal plans for growing the modern retail channel.
Through the CoE the client has made significant improvements to the channel profitability and put in place a system to deliver long term sustainable profitable growth in the channel.