Fortune 200 Consumer Electronics Retailer
Optimized Promotions Management
Challenge
Due to siloed operational functions and a lack of consistent, reliable data, this consumer electronics retailer developed and managed promotional offers based on instinct and available inventory. The result was inconsistent messages across product categories, insufficient value propositions to drive customers to stores and sub-par performance overall.
Solution
Infinitive embedded a team in the retailer's day-to-day business to lead process definition and the development of a new reporting tool. Together, the new technology and processes were designed to enhance communication across functions, drive more advanced promotional planning, coordinate execution, and evaluate results. Further, the team developed a proactive planning process with a long-term perspective far in advance of previous timelines. To evaluate the program's success, the team measured the Gross Margin Return on Advertising Expense (GMROAE).
Results
The stretched planning horizon and new technology allowed internal and external partners to interact more easily and effectively, ensuring promotional offers are strong, ads are accurate and the right products are available on the shelves. Because consistent and consolidated reporting tracks the effectiveness of prior offers, executives can make objective decisions and gain better predictability of results for advertisements and promotions.
The retailer's ads are aligned with strategic goals for product categories and the business. This approach also enabled the retailer to develop a more customer-focused marketing and merchandising strategy.
By applying business rhythms into the planning cycle, the company opened doors between the functional and product category silos, resulting in better promotional offers and increased margins. This disciplined approach factors into all types of promotion decisions including ad space, placement, and pricing.
