Situation
The client was a PE Portfolio Company manufacturing laundry detergents. They were spending more than 15% of total revenue on trade promotions. It was the second largest on their P&L after cost-of-goods. In addition, the client was also looking to enhance relationships with retailers in order to compete more effectively with larger competitors such as P&G and Henkel
Approach
- Analyzed promotion events from past year to assess performance measured by ROI and total profit generated
- Assessed root causes of low performing events and potential promotions that could immediately be impacted
- Developed a long-term trade promotion strategy focused on planning for profit with their retail partners
- Developed a new fund generation and allocation program that was more fair and equitable across customers
- Developed a simulator for improving profitability going forward
Results
- New trade funding analytic tools, strategy and process for the company
- Enhanced strategic planning process and realigned the role of the entire Sales and Marketing organization
- New Analytic tools to be used by entire sales organization
- Re-defining the roles and responsibilities and increasing impact across Sales and Marketing functions