Building an effective promotional strategy is crucial for several reasons. An efficient promotional strategy helps businesses make informed, critical decisions. In this guide, we’ll show how an Australian pesticide brand used our predictive modelling decision-support tool, SmartShopper™, integrating it with its historical data to develop a more effective promotional strategy.
In this case, we’ll cover what the business wanted to uncover and how we helped them achieve it.
The Australian EDLP (Everyday Low Price) retailer wanted to understand:
- Which products to promote
- How much to discount
- How long to run a promotion
- Which promotion type works best
- How to grow revenue while maintaining brand image
By integrating our predictive modelling tool SmartShopper™ with their historical data, they answered a few key questions, such as:
- What customers will buy if prices change?
- Which products do customers switch to?
- How do discounts impact revenue?
- Which competitor products to benchmark against?
By merging their historical data with SmartShopper, they were able to identify:
- Which SKUs would increase revenue when promoted
- Which SKUs would attract more customers
- Which SKUs would encourage shoppers to buy bigger pack sizes
- Which competitor products to benchmark against
- Which mechanics to use
- The right depth and width (timing)
- The ideal frequency of promotions
As a result of this integrated approach, the Australian EDLP retailer identified the best strategy—what to discount and how—leading to nearly 2% more units sold and a 1% increase in revenue.
Download the Case Study to read the full story