Increase in ROI
Manhours saved daily
Accuracy in measuring promotion's impact
With a growing middle class population, Emerging Markets are massive growth drivers for CPG Clients. Although households are seeing increasing wallet sizes, they are still sensitive to price points. CPG clients often resort to promotions as a key tactic to improve their top line revenue and garner customer loyalty.
The process relies heavily on competitor intelligence and legacy business knowledge. However, prevailing market dynamics and lack of scientifically validated assumptions on consumer behaviour get in the way of realising the maximum potential of these promotions.
The client is the market leader in domestic insecticides, air fresheners and baby care products in Indonesia. With a customer base of over 16 million households, almost 80% of the revenue is realized through Modern Trade stores and a vast network of Mini Markets (MM). In fact, General Trade retailers rely on Modern Trade stores to stock up their inventory. Customer affinity towards MM is driven by deeper discounts, practicality and proximity of these stores to buyer's home.
Promotion Planning in such a complex distribution network is difficult, and business teams often struggle in articulating true effects of their promotional efforts. The client wanted to instil a data-driven approach to this process that would let them assess multiple scenarios upfront through an automated decisioning cockpit. This would help them in allocating their spends effectively, and thereby maximise the return.
We helped our client in designing a promotion recommendation solution for the Trade Marketing team to help plan for promotions effectively, foresee the expected lift in sales, simulate competitive scenarios to improve the overall planning exercise.
Established an automated trade planning workflow, ensuring an increase in returns by up to 10%. The tool's ability to determine optimal price points for any promotional objective also helped the team save man-hours otherwise spent on estimating potential returns. We achieved almost 90% accuracy in forecasting baseline and lift in sales across all products, resulting in precise evaluation of operational KPIs.
Decision Boards capturing effects of cannibalization, markdown, pull forward were also rolled out to help the business teams take quicker decisions on any on-going campaign.