Trade Promotions Optimization: How a Leading Frozen Yogurt Manufacturer Optimized Their Budget Allocation Strategies

Apr 16, 2018

The Client: A well-know frozen yogurt manufacturer

Area of Engagement: Trade Promotions

The frozen yogurt industry has been booming for the past decade, driven by strong consumer interest in healthier dessert alternatives and innovative product offerings. Consumers today are more health conscious and tend to consume desserts that are low in fat and have a minimal amount of sugar. It is in this context that frozen yogurt has become the best alternative to unhealthy desserts as it fulfills both the requirements of consumers. Another factor that is expected to boost the sales of frozen yogurt is the distribution of these products through online channels, as online retailers offer a wide variety of frozen yogurt. Also, online stores provide frozen yogurt with lucrative offers and coupons. All of these benefits are expected to boost the growth of the global frozen yogurt industry.

The advanced trade promotion optimization capabilities of our analytics platform help food manufacturers to drive profitable outcomes within a short span. Contact us to know more about our platform capabilities.

However, our analysis of the food and beverage space shows that the frozen yogurt manufacturers are facing challenges in terms of:

  • Increased competition from substitute products: Today, consumers purchase frozen yogurt mainly because of their health benefits and indulgence factor. However, food and beverage manufacturers across the globe are offering various other products that also offer numerous health benefits including low-calorie ice-cream and other frozen fruits.

  • Consumer preference for fresh food: Typically, consumers of today have a perception that frozen foods are stale and have low nutritional value. This perception is causing a shift in the consumption factors of the consumers.

Many such challenges are compelling firms in the global frozen yogurt manufacturing space to leverage the use of trade promotions optimization solutions. Trade promotions optimization solutions help firms effectively address issues pertaining to transparency and visibility on trade spends. These solutions also help companies improve efficiency in promotion planning and standardizing global promotions to keep them on par with customer requirements.

To know more about how to trade promotions optimization helped the frozen yogurt manufacturer to analyze the impact of the latest food and beverage industry trends, request more info.

The Business Challenge

A leading frozen yogurt manufacturer with business operations spread across the globe was facing significant market pressure from their competitor, their trade promotion programs, and substitute products. As a result, the client wanted to improve their capability to plan product promotions, inventory levels, and profit margins. Additionally, the client wanted to evaluate the effect of various promotions, including volume discounts, and seasonal sales, and shift to a more targeted promotions approach.

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The Solution Benefit and the Business Impact

With the help of Quantzig’s trade promotions engagement, the frozen yogurt manufacturer was able to improve promotion reach and effectiveness and further create plans based on cost, timing, and depth of promotional activities. The client also analyzed promotional efficiencies based on period and food and beverage industry trends. This helped the client effectively plan future promotions based on segments, type of promotion, and frequency of occurrence.

Trade Promotions Predictive Insights

Quantzig’s trade promotions engagements help firms in the food and beverage industry space to analyze the promotional SKUs and product demand patterns along with customer segments. The engagement also helps firms minimize their revenue budget constraints for better trade promotions. With the help of Quantzig’s trade promotions engagement, firms can also optimize their budget allocation strategies.

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