Industry
Company Profile
- $6bn annual revenue
- Grocery retailer with a mix of supermarket and hypermarket stores
- 12,000 SKUs
Situation and Objectives
- Optimize the promotion strategy to generate more revenue and profit
- Identify algorithms and rules for an optimal promotion strategy
- Develop a promotion tool to support key stakeholders in their decision-making
Approach
- Build a promotion database consisting of ERP and ticket data as well as all promotion-relevant data and external impact factors (e.g. weather, holiday seasons)
- Asses the current promotion strategy by analyzing promotional effectiveness with econometrical models and a customer survey
- Design rules to implement the optimal promotion strategy considering guardrails from the company strategy
- Develop a promotion tool which helps to implement the promotion strategy in daily business using the defined rules and most up-to-date information base
- Train key stakeholders to use promotion tool in daily business
Product value and price categorization

Results
- Promotion strategy with clear rules on promotion design, i.e. category/item selection, promotion type, discount level and communication as well as in-store/out-of-store media
- Promotion tool with direct connection to all necessary data to support key stakeholders in promotion decision-making
- Trained personnel who know how to apply the promotion tool and thereby the promotion strategy and rules in daily business
Impact
- Uplift of frequency during promotions by 8%
- Uplift of promotion sales by 15%
- Uplift of promotion profit by 9%