India's largest platform and marketplace for AI & Analytics leaders & professionals

Sign in

India's largest platform and marketplace for AI & Analytics leaders & professionals
Become a Thought Leader
Become a 3AI Member

Sign in

3AI Digital Library

< Go Back

Promotion Analysis and Prediction from TPM data

3AI September 10, 2020

US subsidiary of one of the world’s largest food company

Problem Statement

  • Company had promotion data for a specific retailer in TPM system and wished to leverage it for advanced analytics and forecasting
  • Frequency of promotions were extremely high for the specific retailer, resulting in frequent dips of sales below the baseline
  • The effect of frequent discounting required a new approach to sales response modeling and forecasting

Analytics Led Approach

  • Conducted historical data review and provided insights, trends on promotion performance and sales/revenue distribution by chain and geography
  • A unique methodology to model the effect of continuous discounting on future sales was developed. This resulted in very reliable models to explain promotion responses and volume dips below the baseline
  • Incorporating this new approach provided insights into actual promotion tactic performances by retailer and geography

Business Impact

  • Volume forecasts were generated using the customized model and benchmarked against actual values
  • Analysis and model fitment provided insights into actual (decomposed) effectiveness of individual promotion tactics employed
  • Generated sales forecasts to aid demand planning using customer’s promotion plan for the next year

Critical Success Factors

  • Recommended a more optimal promotion strategy, based on variation in tactic (discounts, features and displays) effectiveness by retailer and geography

    3AI Trending Articles

  • Blockchain-Based Stock Exchange in Japan by 2022

    The exchange reportedly planned by SBI and SMFG is expected to be the first of its kind in Japan. SBI Holdings has reportedly partnered with Sumitomo Mitsui Financial Group (SMFG) to launch a digital stock exchange slated for spring 2022. SBI and SMFG are expected to launch the platform in Osaka to compete against the […]

  • Artificial Intelligence (AI) and Business Intelligence (BI) Revolutionize Legacy System Modernization: A Data-Driven Approach

    Featured Article Author: Pankaj Zanke, Sapient Legacy systems, which many organizations rely on, often become technological burdens for the same organization. Built with old technologies, tools, and architecture, they need help keeping up with modern business’s latest technological needs. Scaling and integration issues and security issues also affect agility and innovation. However, how they are […]

  • Accentuating customer experience: Digital Chat Agents & Chatbots

    As e-commerce (and retail in general) becomes increasingly global and competitive, business leaders understand that AI can be a valuable tool in reconnecting with consumers. AI has the power to analyze huge amounts of data from numerous sources, including human behaviors and emotions. This can then be used to create more meaningful customer experiences. Take, […]

  • ML & Data Science Solutions: Build, Buy or Outsource?

    Data and analytics leaders increasingly believe that data science is a critical component of their analytics and business intelligence (BI) modernization plans, and are clamoring to incorporate new. Technologies such as predictive analytics, machine learning and deep neural nets sit at the Peak of Inflated Expectations on related Gartner Hype Cycle. While some degree of backlash […]