Understanding Promotions

ROI on Promotional Spend - One of the toughest codes to crack

Promotions can come in many forms - price reduction, with or without display, and sometimes with features in retailer circulars.  Without analytics help, it is really difficult to identify the promotions that run on your own brands, let alone measure the promotional impact of your competitive set.  Promotional spending is one of the most expensive undertakings a CPG supplier faces, and is one of the most obvious places to drive volume and profit improvement.  Oftentimes, buyers will "re-invent the square wheel" by repeating promotional events from the past with little or no guidance from suppliers on promotional effectiveness!  Suppliers need to assess promotional effectiveness, harvest lift and ROI data, and actively sell in improved promotional participation.  

Pivotstream delivers Nielsen promotional analytics to everyone, and integrates additional data sources like Market Track store-level ad data, distributor depletions data, and your own captured promotional support data (fixed and variable scan fees) to determine Promotional ROI.  Map yours and your competitor brand performance across weeks to see the base versus incremental promotional sales.  Armed with these insights, you can set plans to spend your promotional dollars most effectively, by retailer and channel, and improve throughput,  profitability, and retailer satisfaction.

Jeff EldertonUnderstanding Promotions