Retail Price and Promotion
A leading retailer and CPG manufacturer needed to understand if they could reallocate resources for an annual promotional plan for products in the chocolate category.
With IRI Retail Price and Promotion, IRI uncovered a $3 million growth opportunity for the entire chocolate category at a retailer that could be achieved by putting the most effective SKUs on promotion and adjusting the depth of discount across the category.
A leading retailer and CPG manufacturer were working on developing a promotional plan for their king-size products in the chocolate category. Instead of replicating the same schedule as last year, they wanted to know if they could reallocate resources to improve top-line sales and margin.
IRI ran price and promotion models for the entire chocolate category and loaded them into the collaborative gateway in order to identify possible promotional reallocations.
Based on SKU-specific display lift performance, the retailer and manufacturer were able to put the most effective SKUs into the promotional plan. Then, they optimized the depth of discounts, making better use of their promotional dollars.
The project identified a $3 million growth opportunity for the entire chocolate category, a win-win scenario for both the retailer and manufacturer. Approximately $1.8 million of that growth was achieved by putting the most effective SKUs on promotion and another $1.2 million in lift was achieved by adjusting the depth of discount across the category.
The retailer is now incorporating this modeling process and scenario planning into its price/promotion decision-making process in collaboration with its supplier partners across multiple categories.
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