Trade Promotions Optimization For a Leading Pharma Giant

Sep 23, 2017

Today, the pharmaceutical industry is witnessing unprecedented challenges in terms of government initiatives to curtail costs and growing criticism about the soaring prices of new medicines. Therefore, to stay relevant and competitive in the market, leading pharmaceutical companies have started advocating the need for trade promotion optimization solutions. Trade promotion optimization helps businesses in the pharmaceutical space effectively address issues pertaining to transparency and visibility on trade spends. Furthermore, organizations can leverage the use of trade promotion optimization to provide strategic control of trade funds; thereby, allowing companies to allocate funds appropriately.

To effectively devise a promotion and scenario planning strategy, leading organizations in the pharmaceutical industry have started approaching Quantzig’s team of experts. With years of expertise in offering a plethora of services, Quantzig’s trade promotion experts help clients allocate funds effectively. Furthermore, the solutions offered by Quantzig also assist the client in improving efficiency in promotion planning and standardizing global promotions to keep them in alignment with the local needs.

To learn more about trade promotion optimization and its benefits for your business, contact us.

The Business Challenge

A renowned pharma manufacturer and retailer was facing a predicament in terms of declining sales. The client was also facing significant market pressure from its competitors’ trade promotion programs. Moreover, the client wanted to improve various aspects of their capability to plan product promotions and improve their inventory and profit margins in the pharmaceutical industry. The pharma manufacturer and retailer also wanted to plan product promotions better and wanted to improve various aspects of executing promotional activities. Furthermore, the pharma client wanted to assess the impact of various promotions, such as buy one get one free, volume discounts, and seasonal sales, and shift to a more target approach.

The primary objective of this engagement was to leverage the use of trade promotion optimization for precise promotion planning and increase client loyalty.

Trade promotions

Want to learn more about our analytical methodologies that help improve trade promotion planning? Request a FREE proposal from our experts.

Our Approach

Quantzig’s trade promotion optimization team crafted a dashboard comprising of data collected from a variety of sources such as historical sales data, category and product data, pricing data, promotions data, shipment data, and ERP data related to the pharmaceutical industry. Also, the research team collated information from various proprietary sources to identify areas in terms of planning, forecasting, replenishment, and pricing to execute promotions.

Trade Promotion Optimization Benefits

With the help of this trade promotion optimization engagement, the client was able to analyze promotional efficiencies based on period and retail segment. The pharma client was further able to improve promotion reach and effectiveness and further create plans based on cost, timing, and depth of promotional activities. Also, the engagement helped the client gain dynamic insights on how to effectively plan future promotions based on segments to target, type of promotion, and frequency.

If you’re looking to optimize and digitize your trade promotions, Quantzig can help you. Request a FREE demo to know how.

Trade Promotion Optimization Predictive Insights

  • Analyze the promotional SKUs and product demand pattern along with customer segments
  • Maximize revenue given the budget constraints for the trade promotions
  • Enable the client to optimize their budget allocation
  • Effectively estimate losses during promotions due to out-of-stock situations
  • Price analysis for different categories that are inelastic

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