Trade promotion optimisation

Business challenges

- Identify the right price and discount point that maximises sales lift and return on investment (ROI)

- Optimise promotions to improve sales performance of newly launched products

Analytics solution and results

- Build a linear regression model to understand the impact of demand drivers on historical sales volume and calculate base volume

- Calculate total ‘true’ cost of promotions based on the individual components

- Calculate ROI for historical promo events