Promotional Effectiveness Improvement

Partnering with a multinational retail chain to improve promotional effectiveness across the company’s sports protein powder products.

To discuss how we can help you with similar challenges, please contact Jeremy Smith.

The Problem

  • The retailer was experiencing limited visibility of their sports protein powder products, on which promotion mechanics were delivering the largest uplift from base.
  • There was limited clarity on the promotions benefits for the client versus their suppliers.

The Solution

  • The 4C team built a proof-of-concept model within Excel, combining promotion and sales data to demonstrate the art of the possible.
  • We consequently used this data driven approach to develop a promotional effectiveness solution within 4C’s own 4Margin dashboard.
  • As a result, we were able to highlight which promotions were delivering greater uplift in net sales and cash margin and how each supplier was benefitting.

The Impact

  • Significant savings of approximately £275k in additional retrospective support by using this approach as a negotiation lever with suppliers were identified.
  • There has been a data-driven change in the promotional strategy based on our analysis that demonstrated discount (%) promotions were more effective than multi-buys, leading to increased revenue and value to the customer.
  • The client benefited from a newly established dynamic promotional effectiveness model for other categories to drive further long-term improvements.