Promotion Effectiveness

Whilst Promotion has become one of the key competitive differentiator especially for consumer goods, the amount of investment it involves make it imperative to be effective and deliver the desired ROI.

We at Beacon understand this omnipresent dilemma and have devised a strong analytical framework to empower Brand managers with deeper insights and scenario analysis.

The Key issues that are encountered are:

  • Market information not collated in timely manner
  • Insights not leveraged effectively from historical promotions
  • Lack of effective performance management system for a post event evaluation

Our solution helps clients to:

  • Identify the right price & discount point that maximizes sales lift & ROI
  • Eventually increase consumer penetration
  • Have a long-term sustained impact on baseline sales

Key Model Features

  • Econometric model requiring multi-variate time series sales input
  • Segregates total sales into baseline sales and variable sales
  • Variable sales includes promotional effects, marketing mix variables, advertising, seasonality and so on
  • Model Incorporates cross-SKU promotional effects from all SKUs
  • Also takes into account leads & lags in order to accommodate the illusive post-promotional dip
  • Uses Bayesian State Space modeling process to estimate model parameters & to assess the closeness of model predictions to the true structure of sales

Our Promotion Effectiveness Modeling Methodology