Most marketers will agree that price is often the number one determinant of sales volumes. By offering price discounts, special offers and the like, marketers are hoping to attract incremental volume which they hope will create longer term brand value.
Research has repeatedly shown that the vast majority of these promotions are unprofitable for the brands themselves – indeed they may well be unprofitable for retailers also.
With this in mind, we built a new kind of promotional planning tool that helps both Brand Owners and Retailers understand the real incremental profit that a promotion might bring. This takes into account the impact of the promotion on not just the items being promoted but also on the category.
In knowing this, marketers can determine which types of promotions they should be running, in which retailers and at which time of the year.
With this information to hand, marketers can build a more reliable promotional plan and form more profitable relationships with customers.