Consumer packaged goods (CPG) brands can get a true picture of their promotional performance thanks to the launch of a new, machine-learning-powered analysis tool.
Created by Atheon Analytics, SKUtrak Promote gives users 360° visibility on promotions, allowing firms to make “smarter and more strategic planning decisions” based on a complete understanding of historical – and projected future – promotional performance.
Atheon noted that CPGs have traditionally found it difficult to get to the heart of a promotion’s effectiveness, and 70% of promotions lose money for the manufacturers.
“The magic of SKUtrak Promote is the deep and detailed picture it builds from many variables rather than the normal surface-level view,” said Guy Cuthbert, the company’s CEO.
“Working from a shallow summary reduces the chances of optimising future campaigns and increases the risk of wasted investment. By simulating the likely effects of all promotional tactics, SKUtrak Promote provides CPGs with the rich and nuanced insights they need to plan, evaluate and decide their promotional strategy.”
The new application brings three key benefits to CPG brands:
- Gives them the ability to simulate the results of their promotional tactics, allowing them to adjust parameters to see which approach will deliver the best results.
- Provides daily updates on promotional performance, helping them to track accruals and take early corrective interventions.
- Supports a deeper understanding of the mechanics of promotional performance, giving brands a path to replicable success.
“SKUtrak’s TruDemand Engine transforms our approach to assessing promotional effectiveness by focusing on performance through a sell-out lens,” commented John Fernando, Senior RGM Manager, Advanced Analytics, at Danone UK and Ireland.
“We are experiencing a substantial improvement in the accuracy of our promotional KPIs, which enables us to deliver invaluable insights to the business. This model not only provides historical baselines but also forecasted baselines, empowering us to review future promotions and enhance our forecasting capabilities effectively.”
SKUtrak Promote is built on TruDemand, SKUtrak’s intelligence layer. Using TruDemand’s advanced machine learning capabilities, SKUtrak Promote eliminates mitigating factors like cannibalisation and availability, giving brands the chance to build up a realistic picture of promotional performance.
