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

  • How Augmented Analytics is Transforming the Analytics Ecosystem

    Author:  Sidharth Sivasailam, Vice President – Products, Course5 Intelligence | LinkedIn – https://www.linkedin.com/in/sidharthsiva/ The world of Business Analytics is at an inflection point. Trillions of bytes of data are being generated every day; however, companies continue to struggle with harmonizing this data, analyzing the data of various shapes and sizes they are storing, determining what’s most […]

  • Using OpenAI GPT-3 to write E-Commerce Product Descriptions

    gpt

    Featured Article: Author: Raj Bhatt, CEO, Knowledge Foundry The ProblemWriting e-commerce product descriptions has traditionally been a manual process. This activity necessitates a substantial amount of creative effort given the hundreds of new products produced by each brand/marketplace each year. While large companies use copywriters to create these product descriptions, many smaller companies opt for […]

  • Is your Enterprise AI Ready: Strategic considerations for the CXOs

    Author: Sameer Dhanrajani, CEO at AIQRATE advisory & consulting | AI advisor, business builder | Author | Speaker |Columnist| President at 3AI | Ex-CSO: Fractal, Global Business Leader: Cognizant, Country Head: Fidelity National Financial At the enterprise level, AI assumes enormous power and potential , it can disrupt, innovate, enhance, and in many cases totally […]

  • IIT Kanpur introduces Master’s programs in Cybersecurity

    IIT Kanpur has introduced three new cybersecurity postgraduate programs with intent to to address the need of cybersecurity personnel by ensuring training of dedicated and highly skilled manpower.   With a view to meet the shortfall in trained and skilled cybersecurity personnel in the country, the Indian Institute of Technology, Kanpur has decided to introduce […]