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Home Case Study FMCG Trade promotion evaluation

Case Study

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Trade promotion evaluation

Industry: FMCG

Problem Statement

A popular FMCG market leader wished to understand the impact of their trade promotions on sales across various key channels.

Our Approach

  • Identified baseline at outlet SKU level.

  • Calculated lift of various promotions.

  • Binned various simultaneously run promotions.

  • Calculated Incremental sales to incremental spends.

The How

  • Built a
    single source of truth

  • Built an
    Analytics data mart

  • Built a
    baseline-fitment model.

  • Determined Incrementalsales, incremental payout, Return on incremental promotional spends (ROPS)

Insights to action

  • ROPS >

    4 was considered acceptable.

  • 13% of promotions with ROPS < 1 required review.

  • Lift (sales over baseline) was ~15% for the period analyzed.

  • Incremental Payout (payout over baseline) was ~60% of the incremental sales.

Impact

  • Aided scheme design by providing feature-level ROPS of under-responsive geographies, products etc.

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