Understanding promo effectiveness in oral care.
Client
Global Healthcare Brand
Background
Exploring pricing thresholds in promo campaigns.
Overview
The business objective was to maximise promo response, promo effectiveness and promo timing for a leading oral-care brand.
Our job was to analyse regular and promo pricing across leading retail outlets and recommend the right approach to promo planning in the most profitable channels — maximising volume and value for the most sellable SKUs and benchmarking them against the most aggressive competitive SKUs.
Outcomes
- Optimal regular-price thresholds analysed, with a recommended acceptable range given high anticipated inflation
- Optimal promo-price thresholds analysed, with recommended promo discount depth and duration to achieve maximum sales
- Elasticity analysis done for regular and promo pricing in value and volume, with specific inflation and nominal price change
- Analysis of optimal promo timing, duration and breaks executed by channel and by SKU
- Analysis of optimal promo assortment and price indexes (own vs. competitive portfolio) cascaded to cross-functional teams
