Like many CPG companies, the client was trying to ﬁnd the right trade spend and retail pricing investment levers to unlock proﬁtable growth. Through consolidation, retailers have put downward pressure on overall proﬁt margins through deep discounting pricing strategies. This market dynamic may achieve short-term sales volume acceleration for both the retailer and the company, but quite often these sales spikes work against long-term proﬁtability. Over time, constant discounting to drive sales growth can cause an erosion in brand equity, which makes recapturing competitive proﬁt margins even more difﬁcult. The client wanted to protect their brands from the dual threats of excessive price discounting and private label competition. In order to adapt to these challenging trends, there was a need to optimize their trade promotion and pricing strategies.
The Promax Optimize solution provided our client with the data transformation and insight-driven planning capabilities required to shape demand and drive proﬁtable growth. The Promax Optimize solution combines industry-leading predictive modeling software, in a machine learning based framework.
The Wipro team provided expert training, management consulting, data management and data sciences support to the client. The Wipro consulting team played a very active role in helping the client navigate various challenges and successfully achieve the desired business outcomes. This partnership led to a high level of satisfaction and user adoption.
The client decided on a quick three-month pilot to deploy Promax Optimize for their UK operations; initially to support their largest retailer, and then add seven more retailers over time. Driven by the success of the initial pilot, the client has now deployed the solution to seven more countries, covering the business for an additional 20 retailers. The pilot phase provided a global template design that was quickly adapted, and modiﬁed as necessary, for the new markets.
Solution highlights include:
Through this successful deployment, the client now has a stable, and repeatable process, to measure and optimize trade promotion ROI across their business.
The Promax optimize solution has enabled cross-functional teams of the client to have better discussions on promo strategy, promo priorities by brands, brand platform tactics, etc. The tool brought in a ROI mindset in the departments involved, based on which potential action plans have been laid out.
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