Spar InfoTech, Inc.
Low Noise Promotional Periods
Background: One size (with five national brands) sold primarily in grocery usually had poor results from promotions but occasionally had a very successful promotion.
Analysis: The successful promotions always occurred during periods of low noise. During certain times of the year the sales department was not distracted trying to focus on larger volume items and could focus on selling this size product.
Recommendations: Promote less often when other larger volume sizes were on promotion and focus the promotions on periods when other larger volume sizes were not distracting the sales force (and the retailers).
Net results: The unprofitable promotions were eliminated, and more focus was put on promoting this size product during off periods resulting in even greater profits from the promotions.
Learnings: There are many factors that impact the profitability of promotions and many of these factors are within the control of and known by the CPG Company. Expanding the analysis beyond just what incremental sales and profits are generated but the impact of internally driven factors on the promotions to improve the whole promotion planning process.