Traditional channel execution strategy

We helped a multinational food company decide its strategic execution in the traditional channel, based on different alternatives, with different levels of investment and expected return. On the basis of a clear definition of the role that the channel was expected to have, the application of decision methodologies enabled us to explore divergent alternatives, analyze them with a data-based approach and finally choose a path with a higher return than the alternatives that were considered at the beginning.

Context: 

Occasionally, it often happens that during a decision-making process, more importance is given to intuition than is recommended, and this is especially critical in the case of sales strategies.

Our client was losing brand presence and sales in its traditional channel, for which reason it had identified the need to redefine its execution strategy at points of sale, as well as measure the associated marginal impact.

Approach: 

We worked side by side with the client in the definition of the role this channel was expected to have and the specific objectives it sought to achieve. Having defined this goal, we began to explore divergent alternatives that would maximize the achievement of those objectives and surpass the strategies that were initially proposed.

After analyzing the return of each of these alternatives, a path was chosen to launch pilot tests in several stores, leaving others unchanged. Three months after, we captured the data and optimized the chosen execution strategy to offer the best combination at each point of sale.

Results: 

With this approach, we were able to understand the incremental benefit in sales of each strategy and optimize the investment in materials that were delivered to the different clients. In addition to implementing a strategy that allowed repositioning in the channel and improving sales, this allowed our client to stop delivering those materials that did not generate a significant increase and deliver more combinations of materials capable of generating a greater impact. On this basis, we structured a model for the decisions that were made each quarter seeking to contribute to ROI or to the increase in sales, which began to be managed as CAPEX.

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