our Success cases
casos de Éxito
How a food company moved from promotional overload to profitability through a disciplined promotion strategy supported by profitability analytics
Contexto
Context
- A global leader in baby food and healthy snacks, faced a critical challenge: despite running almost 2K promotions across key retailers, 98% of campaigns yielded negative ROI.
- Narrow margins, aggressive discounting, and lack of real-time simulation tools left their teams unable to prioritize profitable actions.
- The goal was clear: transform promotional spending from a cost center into a growth driver.
Our approach
Nuestro enfoque
- We built a dynamic promotional management platform combining predictive analytics and actionable insights.
- By leveraging historical data, we developed:
- AI-powered models to estimate baseline demand, cannibalization and forward buying at SKU and category levels
- A user-friendly simulator allowing revenue teams to test promo scenarios before execution
- An automated data pipeline integrating sell-out, COGS, and promo calendars into a unified dashboard
Deliverables
Entregables
- Promotion Library: a granular review of past campaigns revealed a small percentage of promos were profitable, primarily due to net sale prices dipping below COGS during discounts
- Real-Time Simulator: teams could now forecast how a “Buy 2, Get 1 Free” promo in key retailers would impact margins before approval, adjusting variables like retailer co-funding
- Diagnostic Insights: the tool identified clusters of high-potential promotions, such as limited-time discounts, where margins were less eroded
Results
Resultados
- Co-funding agreement
a 50/50 split with retailers could reduce promo costs by 15%
- Pricing strategy shifts
the data urged a rethink of everyday shelf prices to create promo headroom
The platform uncovered the root cause of negative ROI: the company’s baseline net sales were already near cost levels, leaving no room for discounts
The tool paid for itself in 3 months by preventing low-ROI campaigns
Our asset – PriceLab: smarter predictions, stronger margins
- The company’s teams now rely on this tools to predict how each promo will perform, down to SKU-level, optimize budgets by reallocating spend from low-impact mechanics to targeted tactics and scale seamlessly to new categories and retailers
