#efficientpromotions

Efficient Promotions

We help you optimise your campaign’s investment, calculating everything from promotional elasticity to ROI for each action taken with regard to product, shop, offer, visibility and so on. We identify the most appropriate levers and mechanisms for each brand and occasion.

promociones eficaces

At POS Potential we take pride in being particular and results-oriented. Hereafter are some examples of campaign efficiency issues that you have surely come across before. Thanks to the perfect integration and evaluation of sell-out data, we can help you solve these problems, while always having the right tools to sell a higher quantity of stock, more effectively.

Promotional case #1: Not all campaign mechanisms achieve the desired results

The effectiveness of a campaign depends on channel, category, time of the year and product. In order to be efficient and to achieve an adequate return on the campaign investment and shopper satisfaction levels, it is vital that promotional mechanisms are adapted to the parameters of each product/channel/time period.

  • Aim: Increase sales and share
  • Key metrics (KPIs):for each family, analyse of the most important mechanisms with regard to seasonality; promotional uplift according to lever, product or product family
  • Action: Compare the results between mechanisms and product families in order to choose which ones deliver the highest growth
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Results:
Maximise sales value and increase market shares

Methodology:

In order to analyse the results of different promotional mechanisms:

  • Identify the promotional periods to calculate each product/family’s base sales and promotional sales
  • Identify the promotional mechanisms used in each campaign
  • Compare the two sales figures to calculate the promotional sales uplift by product/family and mechanism. This enables to define which products/families of products are the best value contributors

Promotional case #2:
not all products show the same promotional behaviour

Each product reacts differently to campaigns due to their positioning and life cycle. It is important to understand the reactivity of each SKU in order to optimize campaign planning and seasonality.

  • Aim: Define the products that are the best value contributors at all times
  • Key metrics (KPIs): Ongoing identification of the products that show the greatest increase above the baseline while on promotion. Promotional uplift by promotional mechanism, product/family and time period.
  • Action: Compare the results of products and families during each season to choose the product families that contribute the most value during a defined period.

Results
Maximise sales value

Methodology

To analyse the behaviour of different products in promotion:

  • Identify the promotional periods to calculate each product/family’s promotional and base sales
  • Identify the promotional mechanisms used in each campaign
  • Correlate the two sales points to calculate the uplift (or increase in sales) while on campaign for each product/family and each mechanism. This enables to then choose which products/families of products are the highest value contributors with the optimum mechanism

Promotional Problem #3: Deviations between actual sales and forecast

Once the appropriate mechanisms for each product have been chosen

  • Aim: Avoid out-of-stock or surplus stock during or after a promotional event
  • Key metrics (KPIs): Historical sales and out-of-stock patterns to feed demand planning processes. Campaign uplift and OSA (On Shelf Availability) per point of sale
  • Action: Incorporate promotional sell-out data into sales forecasts and demand planning
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Results
Increase in sales and share/shopper satisfaction

Methodology:

In order to analyse campaign deviations:

  • Identify and focus on campaign actions with strong deviations between forecast and actual sales
  • Identify out-of-stock cases for items in promotion during these actions, both at a global level and at point of sale looking for patterns
  • If out-of-stock events are high, increase stock for future campaigns wherever required. This could involve questioning promotional space allocation
  • If there are no out-of-stock events, adjust forecast for future campaign actions

Campaign Problem #4:
Disparity between results of different points of sale

  • Aim: Maximise the results of future actions
  • Key metrics (KPIs): Sales per point of sale (POS), and difference between forecast and sales by POS, areas, etc
  • Action: Incorporate campaign data into sales forecast and demand planning per point of sale

Results
Increase sales and share

Methodology

In order to analyse the disparity between results at points of sale level:

  • Identify the campaign results per point of sale: promotional uplift and out-of-stock events, and compare these to see if there is a direct correlation
  • Compare results identifying the best-case and worst-case scenarios. Analyse which actions have been taken and not taken in both cases to draw insights
  • Share these insights with the sales teams and develop specific action plans and monitoring processes for the future
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