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Promotion Optimization

Case Studies
Enrico

Rebuilding Pricing and Promotion Analytics for a Global Data-Storage OEM

A Fortune 500 global data-storage OEM was bleeding margin in its $200M U.S. B2C hard-drive business. One flagship family had taken a substantial net-pricing hit year-over-year, and roughly 45% of historical promos were returning only 0 to 20% ROI. Revology rebuilt the pricing and promotion analytics from the ground up using causal Double Machine Learning, a retailer-math ROI model, and a three-archetype segmentation framework. The target: $3M to $6M of incremental EBITDA (a 10x to 20x return on the engagement) within 12 months.

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Manufacturer profit growth through promotion effectiveness and optimization strategies.
Case Studies
Armin

Driving Manufacturer Gross Profit through Promotion Effectiveness & Optimization – Case Study

In this case study, we explore how a $1.5B privately-held Consumer Packaged Goods manufacturer successfully navigated the challenges of a competitive market. Facing declining market share and profitability, the company struggled with ineffective promotional strategies, leading to eroded gross margins in the face of increased promotional spending. The company collaborated with Revology Analytics to develop the Promotion Effectiveness and Optimization platform using the client’s existing tech stack. This included the development of a Pricing & Promotions data warehouse in Azure and Diagnostic and Predictive Analytics capabilities for Pricing & Promotions using Tableau and R. The case study offers valuable insights into overcoming obstacles in planning and profitability, showcasing the significant improvements in retail buyer engagement, gross profit, promotional ROI, and market share.

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Business chart showing senior executive support and promotion analytics data.
Insights
Armin

Promotion Analytics: Why 50% of companies are falling behind and how to catch up.

Two decades later, Promotion Effectiveness & Optimization is still a substantial business problem for companies; at least 50% struggle in this arena.

When we asked ~ 150 commercial leaders about their organization’s Promotion Effectiveness & Optimization capabilities, the Consumer Goods industry emerged with a high score of 3.3 (a little better than Average). This is unsurprising since this is one industry where Promotional spending is routinely 15-30% of Gross Revenues and where the Trade Promotion Management, Effectiveness & Optimization (TPX) software industry grew the fastest.

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