Case Study

Optimizing Offer Mix for More Efficient Retailer Support

Analytics in Action

Situation

A leading CPG manufacturer with a broad portfolio of brands was challenged to effectively execute and manage more than 500 coupon and rebate offers each year in response to multiple retail customers’ requests. The complexity of this expansive promotion activity was made even greater by the need for geographic-specific offers for retailers across several channels. The manufacturer enlisted Inmar Promotion Analytics to reduce the quantity of offers while creating an efficient and effective strategy that satisfied the multiple needs of both brands and retail channels.

Engagement

After being engaged by the company to create a strategy for achieving this goal, Inmar Promotion Analytics executed a comprehensive comparison of ongoing and recently executed coupon and rebate offers. The Inmar team used a number of efficiency and effectiveness metrics — including Cost Per Unit Moved (CPUM) — to compare multiple offer types and methods against brand objectives while maintaining sensitivity to their individual attributes. This analysis created a holistic view of the client’s existing promotion strategy and uncovered numerous opportunities for streamlining future promotion events.

Deliverables

At the conclusion of their analysis, Inmar Promotion Analytics delivered to the client an annual promotion plan for coupon and rebate promotions that aligned consumer promotions with established sales strategies. The team also identified cross-promotion opportunities with key manufacturer partners – identifying partners who had made the best impact against merchandizing and sales goals. Strategic recommendations included in the annual plan addressed geographic distribution, value optimization, method mix and budget controls, with detailed guidance provided for execution across multiple retail channels. The end result was a sophisticated, comprehensive and fully optimized annual promotion plan that eliminated waste and overlap, and delivered increased efficiency and effectiveness for the brands.

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