Strategic Marketing Sciences

US-based CPG manufacturers spend 17.5% of their gross revenue on trade promotions. On average, these deals have a financial ROI of less than 50 cents on the dollar. However, a simple calculation of deal profitability is likely to underestimate the strategic value of trade promotions, including the role of the deals in establishing and maintaining a cooperative relationship between manufacturers and retailers.

SMS conducts a promotion optimization programs based on regression modeling and descriptive analyses to identify the most optimum combination of deals and deal lengths. We also work with our clients to quantify the non-financial value of trade promotions.

SMS Services:

• Promoted price elasticity modeling
• Promoted price threshold analysis
• Hot price point analysis
• Multiple pricing
• Competitive price cross elasticity modeling
• Deal driven brand switching
• Deal driven outlet switching
• Deal price optimization