Consumer Promotion Optimization: Looking Beyond TPO with a Consumer Lens

The premise of trade spend activities has long been optimizing trade spend for high ROI. What happens when the consumer is brought into the equation?
THE PROBLEM
A popular CPG brand was investing significant time and resources on trade promotion optimization and management with only a 50% success rate. We helped defined their key outcomes as:
THE MU SIGMA APPROACH
Prompted by our unique Art of Problem Solving framework, we explored the problem space and found that their trade spend strategy was missing a consumer focus. Leveraging our longstanding strategic partnership with them and their existing framework for decoding consumer behavior, we developed the Consumer Promotion Optimization (CPO) framework.
The CPO framework serves as a natural progression of trade promotion management and optimization operations. Using the CPO, their trade planners can:
THE IMPACT
By combining trade promotion optimization with consumer insights for a single product category, CPO generated significant impact: