Trade Promotion Scheme Design for Large Adhesive Brand
Designed a data-driven trade promotion scheme for a large adhesive brand, optimizing incentive slabs and improving budget efficiency across 500,000+ stores with diverse channels and retailer sizes.
3% sales uplift
Improvement
The Problem
The client, a large adhesive brand based in India, operated across over 500,000 stores with varying channels and sizes. Existing trade promotions such as discounts, points, and gifts had different incentive slabs and targets, but lack of insights led to inefficient budget allocation, suboptimal sales uplift, and low ROI on promotional spend.
Key Challenges
- Promotion Effectiveness: Difficulty in understanding uplift elasticity patterns across different promo slabs, retailers, and schemes.
- Saturation Levels: Identifying points of diminishing returns to avoid overspending on promotions.
- Budget Constraints: Maintaining budgets while ensuring meaningful sales growth across diverse store types and channels.
- Scheme Optimization: Lack of data-driven insights to design slabs and targets aligned with retailer performance and market dynamics.
Our Solution
Analyzed historical sales and promotion data across 500,000+ stores, developed a Promo Analytics Module to evaluate uplift elasticity, and created optimized incentive slabs that maximized sales uplift while adhering to budget constraints.
- Promo Analytics Module
- Data-driven Incentive Design
- Elasticity Analysis
Implementation Approach
- Data Prep: Processed historical sales data, promotion details (discounts, points, gifts), retailer performance, and channel trends.
- Promo Analytics Module: Built module to study uplift elasticity patterns, determining saturation levels for promo slabs and schemes.
- Optimized Slabs: Designed data-driven incentive slabs and targets to maximize uplift while respecting budget limitations.
Results & Impact
- Sales Uplift: Achieved a 3% increase in sales with optimized slabs tailored to retailer and scheme performance.
- Budget Efficiency: Maintained budget control while enhancing promotional effectiveness, avoiding overspend on saturated markets.
- Targeted Strategy: Improved allocation of incentives across diverse channels and store sizes, boosting retailer engagement and ROI.