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    Maximizing Gross Margin Through Optimized Trade Promotions

     

    Trade Promotion & Optimization for Retail Company

    About the customer

    Use Case Type: Pricing Optimization, Inventory Management

    Business Problem

    A retail company struggled with optimizing trade promotions, impacting gross margin, net revenue, and market share. The absence of a cohesive promotion strategy led to suboptimal performance across multiple product lines and markets
    Solution: ORMAE implemented a Mixed Integer Programming (MIP) model to develop an optimal promotion calendar, considering various constraints such as promotion timing, frequency, and product eligibility.

    Our Approach

    ORMAE developed a web application that worked on two fronts:

    • As an AI platform to deduce insights.
    • As a training model with drag-and-drop features.

    The Result

    The retail company adopted a data-driven approach to trade promotions, improving gross margin and market share. Key features included promotion optimization, comprehensive analysis, and flexible integration.

    Impact

    • 5% increase in net revenue.
    • Improved gross margins.
    • Enhanced market share in key segments.

    Get in Touch

    Have a project in mind?

    Looking for collaboration?
    Send an email to bd@ormae.com
    for availability and enquires.

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