Case Studies
Improving Gross Profit with a Promotions Strategy
Overview
Analytics & Modeling - Machine Learning Analytics & Modeling - Predictive Analytics Functional Applications - Enterprise Resource Planning Systems (ERP) | |
Food & Beverage | |
Business Operation Sales & Marketing | |
Data Science Services System Integration | |
Operational Impact
Antuit created and delivered a set of Golden Rules: Golden Rule One: “Don’t promote unless the volume uplift is greater than 200 percent.” This was discovered to be an ROI tipping point. Exceptions could be made for instances where there are competitive brand issues and the beverage company might try to block other brands’ advances, but from a financial standpoint, the 200 percent was key. | |
Golden Rule Two: “Promote only for certain special occasions and holidays.” Rather than 75 promotions in one year across brands, the company should limit its key promotions to specific holidays such as Easter, Halloween and Christmas, among others. | |
Golden Rule Three: “Forget about promoting the flagship brand.” Even though from an overall company strategy that was the brand executives wanted to highlight, it simply was not as profitable as elevating the other two brands. | |
Quantitative Benefit
300 percent uplift through brand switching. | |
Achieved a significant percentage increase in promotional volumes. | |
Gained millions in additional sales and savings across its three channels. | |