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AI/ ML customer solution to improve trade promotion ROI through optimized promotion spend

Summary

Client is a Fortune 500 consumer goods company. For emerging markets, they had limited and inaccurate picture of how trade promotion spends were performing.

  • They wanted to utilize all available potential data sources to improve accuracy and visibility of trade promo spends and to estimate its effectiveness.
  • They also wanted to build a scalable platform that could be leveraged across regions and could conduct scenario planning

Approach

The approach to address the client’s challenge included:

  • Different models were built for baseline estimates and ROI calculation
  • Models were built at SKU-Planning customer level
  • Impact of each trade promotion was analysed, and highly accurate baseline sales predicted
  • The ROI of each trade promotion was forecasted
  • Trade promotion simulator to predict which promotion will give maximum revenue impact

Key Benefits

  • ML driven model to evaluate impact of trade promotion spends
  • Scalable platform to understand the trade spend effectiveness across brands and regions
  • Visualization platform cum scenario planner was embedded to help category managers optimize trade spends

Results

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Our solution contributed to ~1.5M profit from increased net sales YoY

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It was able to save 34k YoY cost from the elimination of existing system

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