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Home Case Study FMCG Trade promotion optimization

Case Study

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Trade promotion optimization

Industry: FMCG

Problem Statement

Client, a premium liquor manufacturer wanted to optimize their trade schemes for effective Adoption, Growth, Trade cost % saving.

Our Approach

  • Identified sensitive outlets.

  • Scientific target setting.

  • Robust evaluation process.

The How

  • Built a
    single source of truth

  • Linear Regression used
    to calculate outlet sensitivity.

  • Machine Learning model used:
    XG Boost classificationmodel

Insights to action

  • Outlet level sales/ payout predictionhelped in target setting.

  • Built Real-time reports/MIS.

  • Exceptions reported.

  • Process automated.

Impact

  • Actual sales @ 106% on achievement on target.

  • Actual payout @ 1.68% vs target payout @ 1.73%.

  • Market share growth in all key segments:

  • Value Whisky from 42% to 49%

  • Scotch from 34% to 36%.

  • Premium whisky from 58% to 60%.

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