How Trade Promotion Effectiveness Analytics Helped a Food Supplements Manufacturer Achieve a 41% Increase in Net Profits

Jun 29, 2020

Engagement Summary

Trade promotion optimization is pivotal to driving sales, building brand equity, and increasing channel partnerships. Businesses that fail to understand the importance of trade promotion effectiveness analytics are missing significant opportunities to enhance their profit margins. The client in this study is a food supplement manufacturer who was struggling to gauge the effectiveness of their trade promotion optimization model. This is when they approached Quantzig looking to leverage its expertise in trade promotion analytics to enhance trade promotions and drive better outcomes. The solutions offered enabled the client to drive significant improvements in profits by optimizing their trade promotion strategies.

About the Client

The client is a food supplements manufacturer headquartered in Ontario, United States. With several manufacturing units across the US, the food supplements brand has a large raw material warehouse that stocks the best high-quality raw materials sourced from all around the world.

Request a free proposal to know more about our trade promotion optimization solutions for the food and beverage industry.

Business Challenge

Identifying the best combination of products to create promotions that are centered around maximizing sales, profit, and a plethora of other important parameters within a given budget constraint, was a major challenge facing the client. Though the food supplements manufacturer recognized the importance of deploying robust trade promotion optimization strategies, lack of domain expertise, and technical skills turned out to be a major constraint that prevented them from implementing an effective strategy.

The client chose to collaborate with us to develop and implement a trade promotion optimization strategy that would help them address their challenges and drive better sales outcomes.  The key challenges faced by the client included-

Problem statement 1

Determine metrics for trade promotion effectiveness analytics- The client was unable to analyze the metrics to gauge the success of their trade promotion model.

Problem statement 2

Identify the factors driving sales- Without proper analytics-driven sales effectiveness models, the client was unable to identify the factors that were responsible for driving sales.

Problem statement 3

Measure competitive dynamics- The food supplements manufacturer was unable to understand the various perspectives of different competitors and how a change in their current trade promotion optimization model might impact future sales.

Solution Offered

To help the client tackle their challenges, Quantzig’s experts adopted a comprehensive, three-pronged approach to leveraging trade promotion effectiveness analytics. The initial stage of this engagement revolved around a detailed analysis of the client’s challenges that helped reveal that the food supplements manufacturer was spending almost thirty percent of their annual revenue on trade promotions. Based on our recommendations and advanced trade promotion effectiveness analytics solutions, the client was able to optimize the spend on trade promotional activities.

Embarking on an end-to-end transformation journey by collaborating with Quantzig empowered the client to gain granular insights into factors impacting sales of different SKUs by harnessing the data from past trade promotions. Measuring the effectiveness of trade promotions using advanced analytics methodologies also provided meaningful insights that helped them enhance their strategies and achieve a 41% improvement in profits.

Owing to our expertise in supporting clients from various industries we are best positioned to use our analytics capabilities to serve your interest. Request a free solution demo to access our analytics platform to learn more about our trade promotion effectiveness analytics solutions.

Business Outcome

Quantzig’s trade promotion effectiveness analytics solutions enabled the client to –

  1. Increase the demand for products in retail stores
  2. Improve product visibility and brand awareness
  3. Increase sales
  4. Improve profit margins by 41%

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