Promotion Optimisation & Pack Price Architecture
Healthcare Provider
8%
promo plan margin improvement in grocery
$722k
profit from PPA
At a glance
The Client
A global healthcare leader operating in a competitive market and running aggressive promotions seeks to drive profitable market share growth through promotion optimisation.
The Objective
To redesign multi-channel pack price architecture to help improve net profit.
Challenges
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Rationalising the SKU range and tailoring it to different channels.
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Managing pricing tensions across cross-channels.
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Maximising the value derived from the catalogue and shelf display.
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Improving ROI for promotional activities.
Solution
Client journey
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Brand positioning & data collection – review each RSP against key competitors and align it with the brand strategy. Collect promotion history, sales data, and other relevant information.
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Pricing ladder and forecasting promotion – evaluate market pricing ladders and set consumer-favourable pricing guidelines. Utilise machine learning models to forecast promotion uplifts from base.
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Pack size review and establish optimal promotions – Analyse existing pack sizes, identify gaps, and rationalise pack sizes to enhance profitability and market share. Establish guidelines for optimal discounts and promotions.
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Shopper/Pack Review – evaluate customer-specific portfolios and align pack size offerings with shopper missions across different channels.
Additional Outcomes
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Alignment to shopper and pricing strategy
The range was reset at the channel level, aligning it with shopper and pricing strategy
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New promotional guidelines
300 new promotion guidelines were delivered at the SKU/ customer level
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Halo model forecasting
The ‘Halo’ model was utilised to forecast the impact of the catalogue on SKUs and categories
