The decision · Consumer goods (FMCG/CPG)
Which promotions should we cut?
Promotions often borrow next month's sales. ActionBasis separates the sales a promotion adds from the sales it pulls forward or takes from your own range, by retailer, then weighs product cost, discount, retailer funding and execution cost before choosing which promotions to pause.
- 1Multi-buy, retailer AAdds little; mostly pulled forwardModelled
- 2Temporary price cut, retailer B+2.1% to +3.8% of baseline salesModelled
- 3Seasonal bundleTakes sales from your own rangeDerived
- 4Loyalty points eventToo few weeks of data to estimate added salesAssumed
How we answer it
- 01
Find the gaps
Promotions, prices and sales are lined up by retailer, product and week.
- 02
Refine scenarios
Each promotion's added sales are separated from pull-forward and switching within your range.
- 03
Plan for ROI
Before choosing cuts, calculate incremental contribution after product cost, discount, retailer funding and execution cost. Added sales alone do not establish profit.
- 04
Pace the steps
Test pausing promotions with weak incremental contribution in matched regions. If cost inputs or enough weeks of data are missing, withhold the cut recommendation and collect the missing evidence.
- 05
Measure and account
Paused regions are compared with matched regions before a wider cut.
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