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Full functionality and better results of promotions management software with our implementation support

 

We supported a large retailer in the region at optimization of promotions and implementation of software for promotions management, which ensured a precise pricing strategy development and ability to track performance of promotions, as well as financial impact on P&L results.

Situation:

  • Traditional retailers in the region are operating in an uncertain business environment: on one side there are new players entering into the market often discount retailers, who are aggressively opening new stores with a different business model and often with much lower prices, on the other hand the customers are not loyal to one retailer, as they were before and therefore making their purchases at different retailers.
  • Market share, revenues and gross margin of traditional retailers are often compromised. One of the levers for retailers to attract or maintain customers are promotions. Traditional retailers are more active and they are investing much more into promotions as their discount retail competition. This is one of the reasons why the rational promotions management, is one of the most important factors of profitable business.

Approach:

  • We prepared the analysis of investment in promotions activities and their impact on general sales performance.
  • We have prepared also a draft for changing the whole promotions investment strategy, as well as the allocation of investments within the promotions.
  • We have also supported our client, when they were implementing software tool for promotion management.
  • We advised the client in preparation and validation of the data for past promotions, structuring (additional) data for planning upcoming promotion activities and we helped them in testing and validation of models which have been developed by using software tool for promotion management.

Impact:

In the first phase of the project, we have performed a statistical analysis of promotions impact on the (general) KPI's on the long term. We gathered retailer’s transaction data, classified promotions and with help of statistical analysis we have evaluated the impact of promotions on sales performance (individual category).
In the second phase, we have established a project organization for implementing a new software tool for promotion management, we identify all stakeholders in the process and their tasks. Beside that we supported our client in project management and when making strategic decisions.  

 



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