Case Study

Trade promotion optimization through statistical modeling and analytics for a top 3 personal care products company

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A Fortune 500 personal care products major with a significant trade promotion spend, especially during high sale season.


Business challenges

Less than optimal ROI from trade promotions during high sales weeks due to

  • Lack of an effective trade promotion model (TPM)
  • Lower forecast accuracy
  • High inventory and stock-outs

Genpact solution

  • Developed statistical models for 30 accounts with avg. 170 SKUs per account to estimate the effectiveness of trade tactics and forecasting
  • Comparative analysis on base and incremental volume growth
  • Used statistical models as input into the TPM tool and recommended adjustment to base price calculator algorithm
  • Designed a six sigma based system to measure and enhance the process efficiency and productivity

Business impact delivered

  • Increase in forecasting accuracy and revised base price lead to better baseline-volume estimation
  • Optimized promotional spend

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