Case Study:
Promotional Spend Optimisation
Using advanced analytics to maximise profitability through the optimisation of promotions.
Case Study:
Promotional Spend Optimisation
Using advanced analytics to maximise profitability through the optimisation of promotions.
Client Challenge
A leading player in the FMCG industry faced significant challenges in optimising promotional spend.
With 30% of investments funneled into unprofitable promotions and without a robust framework to identify underperforming promotions they were unable to make key strategic adjustments to maximise their profitability.
The Solution
A comprehensive, scalable cloud-based analytics solution was crafted, featuring three integrated components to support every facet of promotional planning.
- Our performance review tool isolates the true impact of promotions by decomposing volume into baseline, uplift, cannibalization and stockpiling.
- Our demand forecasting model establishes baseline volumes, predicts the promotional uplift and assess the expected financial performance.
- Our calendar optimiser enhances discount strategies, schedules promotions in optimal slots and enforces predefined operational constraints.
- Our machine learning models leverage three years of historical sales data to facilitate accurate baseline modelling and future predictions.
Solution Value
This integrated solution delivered the robust framework the client needed to enhance their promotional effectiveness while safeguarding profitability and market share across multiple operating companies.
- €1.4 million realised increase in incremental gross profit.