The Beverage & Brewing Company caters to a global market and wanted to understand the efficacy of their promotional mix. Considering the fierce competition within the market, they wanted to shift towards a data-driven decision-making approach.
Co.dx Helped The Beverage & Brewing Company Achieve
11% Additional Lift in
Promotion Effectiveness
18% decrease in
promotion costs
The Beverages and Brewing Company wanted to build a lucrative solution that would optimize their promotional mix while surpassing the following business challenges.
Business Challenge
The International Beverage and Brewing Company lacked the right tools to track and measure efficacy of its promotions. Due to limited visibility of promotion performance, they were not able to restructure their investments to align with product strategies. This also resulted in being a roadblock to boost sales volume in order to reach the desired growth targets.
Solution
Co.dx’s Promotion Effectiveness application helped measure multiple KPIs such as volume impact, marginal contribution, new launch lift, shopper reach, share efficiency, seasonal lift and such, which helped in aligning promotions with the product strategy
Business Challenge
The Company primarily used intuition in planning and optimizing promotional mix and spend. They wanted to depart from this approach and shift towards an insight-driven decision-making approach to optimize promotional mix, economize spending and maximize returns
Solution
Co.dx helped derive insights from data that enabled executives to identify opportunities and navigate scenarios to make the best possible decisions that were rooted in data. Further, latency was also reduced by leveraging real-time insights on promotion campaigns as opposed to quarterly or half-yearly insights
Business Challenge
With over 8% of revenue being spent on promotions annually, the company also wanted to minimize the risk of failed experiments to reduce losses.
Solution
Co.dx’s ‘Design an Experiment’ feature allowed the team to predict the performance of planned promotions prior to their launches to deduce the potential gain and impact on existing promotions.
The Beverages & Brewing Company, leveraged the Promotion Effectiveness application from the Pricing & Promotions suite of Co.dx applications. It helped isolate any overlaps in the type and timeline of promotions using advanced contribution methodologies. To do so, attributes such as price effect, quantity effect, merchandise effect, mix effect, channel mix, placement mix, messaging, time period, discount bucket and such were accounted for. This allowed the user to interpret the effect of promotions in isolation and in tandem with all other current and planned promotions. The deployed application was customized to reflect business intuition and context while seamlessly integrated into the existing business systems and workflows, which enabled effective management and quick response to promotion performance. The application also consists of the capability to conduct experiments and suggest recommendations of experiments to run, whereby, it helps gauge the various promotion options.