Case study · Laundry products

Promotion Optimization

Rebuilt trade promotion — the second-largest line on the P&L — around profit, with new tools, a simulator and a fairer funding model.

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Client

A private equity portfolio company (laundry detergents)

Industry

Laundry products

Result

$30MM increase in promotion ROI

Capability

Promotion Optimizer

The situation

What the client was facing.

The client spent more than 15% of total revenue on trade promotion — the second-largest line on its P&L after cost of goods. It wanted stronger retailer relationships to compete with much larger rivals.

  • Trade spend above 15% of revenue

  • Many low-performing events

  • Competing against far larger manufacturers

Our approach

How we got there.

Methods used

Post-event ROI analysisTrade funding modelPromotion simulator
  1. 01

    Analyzed the past year’s events by ROI and total profit generated

  2. 02

    Found root causes of low performers and promotions that could be fixed immediately

  3. 03

    Developed a long-term trade strategy built on planning for profit with retail partners

  4. 04

    Created a fairer, more equitable fund generation and allocation program

  5. 05

    Built a simulator to improve profitability going forward

Value created

$30MM

increase in promotion ROI

  • New trade-funding analytic tools, strategy and processes for the whole sales organization

  • A stronger strategic planning process

  • Redefined roles and responsibilities across Sales and Marketing for greater impact

Now built into

Gazelle Promotion Optimizer

Promotion planning and full calendar optimization for a higher return on every dollar of trade spend.

See how it works →

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