Topline volume growth is becoming harder and harder to achieve for fast moving consumer goods (FMCG) brands in mature markets.
At the same time promotional frequency and intensity is increasing across nearly all major FMCG categories meaning an increasingly high proportion of promotions run are not “win/win” for both supplier and retailer. Therefore it is becoming increasingly important for brands to understand how they can generate the top and bottom line growth investors are demanding through a laser-like optimisation of promotional strategy, price and mix.
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Our Approach
Our modelling approaches can help uncover key profitable growth opportunities across an FMCG portfolio. Our approach can help you spot where there may be opportunities to drive margin through price increases or to steal share and drive sales volume through targeted price reductions. We also have extensive experience helping our clients embed measurement and optimisation tools in their existing planning, execution and performance measurement processes.
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1
MEASURE SALES RESPONSE
Integrate SKU or product level data across the entire category, modelling engine measures the incremental sales response for different promotional events and price changes.
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2
ACCESS A HOST OF INSIGHTS
Models will produce a host of insights including price elasticities, promotional uplifts and ROIs, cannibalisation and incrementality of promotions
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3
FORECAST AND OPTIMISE
Models can then be used to forecast sales response under different scenarios and market conditions. Isolate optimal promotional plan to understand potential revenue growth and trade spend efficiencies across an entire product portfolio.
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4
EMBED IN PLANNING PROCESS
Embed modelling tools within the promotional planning process. Create a lean centre of excellence to drive adoption and train and empower key account managers to leverage the power of advanced analytics to drive business growth.
What are the benefits?
In our experience embedding this kind of solution in your promotional planning process can lead to an increase in promotional ROI of 20%.
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PRICE SENSITIVITY
Modelling approaches can measures price elasticity, effectiveness of promotional events and in-store features by SKU and Retailer
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CATEGORY INSIGHT
Understand halo and cannibalisation effects across your portfolio and which competitor promotions are most damaging to your brands
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ACTIONABLE RESULTS
Quickly and easily produce & optimise high-quality marketing models. Timely from inputs to decision-making, enabling you to realise opportunities quickly
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PREDICT OUTCOMES
Scenario plan different price and promotional strategies to predict impact on sales. Create win/win plans to take to retail partners whilst maximising trade spend efficiency
Get in touch to see how we can help your business.