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CASE STUDY
Price and Trade Advantage™ case study sees £750K savings per week through promotional de-escalation
Snapshot
SOLUTION AREA
Analytics
SOLUTION
Precision
INDUSTRIES
Food and Beverage
CLIENT
Manufacturer
The Challenge
A leading, global food and beverage manufacturer has been losing value share in the UK for the past five years despite out-promoting the market in terms of percent volume sold on discount. In addition, one of the key retailers they collaborate with also promotes heavily, further eroding the category. Both the manufacturer and the retailer needed to identify ways to reduce the promotional intensity in the category.
Insight
Circana identified that 57% of the manufacturer’s promotions eroded the category. The Price and Trade Advantage™ analysis also identified that promotions on-shelf were not yielding any revenue and that promotions on-display were a lot more effective. Circana recommended a reduction in on-shelf promotions and an increase in on-display promotions, as well as consumer preferences toward BOGOF* and round £ (versus price cuts) promotion mechanics.
The Results
The manufacturer saved ~£750K in promotion spend per week by switching promotions from depth to location (displays), while concurrently boosting the category and profitability.
+£750K
Weekly Savings
