trade-spend-roi-analyzer

What problem does it solve?

This Skill tackles the complex challenge of understanding and optimizing trade spend, a significant investment for CPG companies, by providing rigorous analysis of its impact, ROI, and effectiveness.

Core Features & Use Cases

• Trade Spend Decomposition: Breaks down spend into performance-based, fixed, display, and price reduction categories.
• Incremental Volume Analysis: Isolates true incremental volume from promotional activities, accounting for base volume, category expansion, brand switching, and post-promo dips.
• ROI Calculation: Computes Gross, Net, and True Economic ROI to provide a comprehensive view of promotional profitability.
• Performance Scoring: Scores promotions based on lift, ROI, duration efficiency, post-promo dip, and execution compliance.
• Portfolio Optimization: Identifies reallocation opportunities to maximize incremental revenue within a given budget.
• Use Case: A CPG brand manager can use this Skill to analyze the ROI of a recent BOGO promotion at a major retailer, identify if it was profitable after accounting for all costs and volume shifts, and receive recommendations on how to reallocate the trade budget for future promotions to achieve better returns.

Quick Start

Analyze the trade spend effectiveness for the Q3 promotional period using the provided trade spend details, baseline sales, and event calendar.