Optimization of the promotion management on KPIs

01.

Background

  • Success of promotions is usually only measured by the sales uplift of the promotional items.

02.

Research questions

  • What are the right KPIs to measure promotion success?
  • How can KPIs be adapted to escape the conflicting goals of sales and profit?
03.

Approach 

Optimization of the leaflet structure and HQ processes through

  • Best practice leaflet guidelines to optimize it (category shares, number of products, promotion mechanisms, ...)
  • Application of an optimized KPI set to evaluate the success of promotions
  • Identifying the role of the article in promotion (stars, frequency enablers, stable performers, poor dogs)
04.

Results

 

  • Shopper uplift by 2 – 5 % (uplift depends considerably on the promotion status before the optimization)
  • Promotion budget distribution and achievement is optimized
  • Time saving for the organization between 600 - 1,050 person days per year
  • Lead time for a leaflet is reduced from 12 to 16 weeks to about 8 weeks

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