Promotion Optimisation

UK Spirits Supplier

A UK spirits supplier was looking to enhance their promotional strategy for a key brand in their portfolio. The client sought to optimise their approach and gain deeper insights into promotional effectiveness. We conducted a thorough analysis to address critical questions surrounding display impact, funding strategies, margin optimisation, and governance frameworks. This case study explores how we developed a data-driven promotional framework, balancing promotional pressure and frequency whilst considering competitive dynamics.

£260k

Developed a full year promo plan for a core SKU that could generate £260k gross profit

£500k

£500k in RSV from implementing a deeper promotional strategy with two customers

At a glance

The Client

A prominent UK spirits supplier was looking to enhance their promotional strategy for a key brand in their portfolio.

The Objective

To optimise the promotional strategy, whilst determining the ideal promotional pressure and frequency for key brands.

Challenges

A lack of direction around promotions on different brands within the portfolio
COGs had increased resulting in pressure on gross margin
Future CPI increase in the coming year was very likely

Solution

Re-defined promotional guidelines for the full portfolio, resulting in increased gross margin and RSV.

Client journey

Data validation – collecting all data and validating to ensure removal of errors. Mapping Nielsen data to promo calendars and calculating the base rate
Emerging insights – presenting our initial findings and analysis and starting to shape trends.
Commercial validation – refine our analysis in line with commercial understanding to ensure our recommendations are feasible.
Final recommendations – final presentation of recommendations and finalized key brand promotional plan.

UK Spirits Supplier

£260k

£500k

At a glance

The Client

A prominent UK spirits supplier was looking to enhance their promotional strategy for a key brand in their portfolio.

The Objective

To optimise the promotional strategy, whilst determining the ideal promotional pressure and frequency for key brands.

Challenges

A lack of direction around promotions on different brands within the portfolio

COGs had increased resulting in pressure on gross margin

Future CPI increase in the coming year was very likely

Solution

Re-defined promotional guidelines for the full portfolio, resulting in increased gross margin and RSV.

Client journey

Data validation – collecting all data and validating to ensure removal of errors. Mapping Nielsen data to promo calendars and calculating the base rate

Emerging insights – presenting our initial findings and analysis and starting to shape trends.

Commercial validation – refine our analysis in line with commercial understanding to ensure our recommendations are feasible.

Final recommendations – final presentation of recommendations and finalized key brand promotional plan.

Project outcomes

+£500k in RSV from implementing a deeper promotional strategy with two customers

Identified a Christmas sales trend for a single SKU that could result in +£12k profit per promo per week

Developed a full year promo plan for a core SKU that could generate 85000L and +£260k more gross profit