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Case Studies in Product Development

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Promotion Event Planning and Analysis

A Case Study where Analysis Delivers Increased Sales and Profit

Situation:

A manufacturer of baby food was unsure how effective their sales and marketing initiatives were with both their consumers & the retail trade. The management of the company wanted to:

  • Better understand the effectiveness of their current planning process
  • Evaluate their current spending guidelines, practices and the ROI on 50 of their events
  • Set up a new planning & evaluation process to be used for their next planning cycle
Our Solution:

Alpha 1C analyzed and summarized current practices:

  • There was no formal ROI measurement being done and once analyzed, most events delivered a negative ROI
  • There was not a systematic approach to planning, sales forecasting accuracy was low, profitability was being negatively impacted and the relationship between sales and marketing was strained as a result

Alpha 1C led the development of a framework and methodology for both planning and evaluation (ROI)

  • Additional data needs were identified, vendors were recommended, packages evaluated and additional data purchased
  • A clear picture of the value of the data, it’s usage, and it’s ROI was provided
  • We worked closely with the client’s software vendor to incorporate the planning and evaluation framework

Result:

Alpha 1C implemented a new process for planning and promotion evaluation:

  • Employee (sales) incentive plans were changed to reflect a new focus on profitability vs. sales
  • The company increased the efficiency of its spending resulting in:
    • An 8% reduction in spending (removal of inefficient spending)
    • An increase in sales of +12% (almost triple the previous year)
    • An increase in operating profit of +19%

Timing:

  • This Alpha 1C analysis was completed in less than 3 months