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Optimizing Trade Promotion Spends with a Pricing Simulator | A Food Business Analytics + Price Simulator Case Study
By E2E Research | March 26, 2021

Research Objective

  • A leading food company wanted to understand the sales impact of various trade schemes.
  • They wanted to deconstruct sales in order to differentiate the impact of various schemes (lift analysis) and to understand how price, promotion, schemes,and competition activity impacted sales.

 

Scope & Methodology

  • Created multiple regression models for key SKUs to determine the impact of trade promotions, slab based discounts, internal cannibalization, competition activity and seasonality on their overall sales
  • Calculated sales lift & ROI for each promotion to help optimize budget allocation

 

Spreadsheet showing many different product, frequency, date, and price attributes which can be changed to see different sales volumes

 

 

Value Delivered

  • A scheme simulator was built that allowed the business team to align their trade promotion calendar to meet budget constraints and achieve the desired sales lift for their portfolio.
  • The simulator now guides future investment decisions.

 

 

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