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Monthly Promotion Tracker: Impact on Brand, Retailer and Category
The crisis will see both a de-escalation of promotions as well as suppliers using promotions to help shoppers reducing their cost of living. Many categories will see radical changes of promotional practices. Close tracking of the net impact of promotions on brand, retailer and category is required.
Gross and net impact on volume and value
Source of Business® decomposition of uplift
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"3 Strategies for Revenue Growth in FMCG"
Monthly Tracker of Sales Volume Transfer
How do shoppers switch between segments, brands and pack sizes? Accuris volume transfer shows how shoppers trade down or up between national brands and private label, or between large and small sizes and indicates which price, promo or assortment changes encouraged them to do so.
Which brands do you steal volume from?
Which brands steal volume from you?
Which brands and products upgrade shopper demand?
Which products are downgrading shopper demand?
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Accuris provides revenue optimisation services to two thirds of the top 10 FMCG companies in Europe. We are an independent agency and integrate all available data sources, using machine learning algorithms to detect how shoppers switch between brands, stores and segments. Accuris' Source of Business® model explains revenue streams generated for each promo and media campaign or for new product introductions and assortment changes.
Revenue indicators based on gross rather than net impact will lead to sub-optimal or even wrong decisions. Net effects strip out back-and-forth switching and other false positives. Promotions, price increases and new listings can lead to strong revenue increases in gross terms, but net results may be much lower or negative, thereby possibly misleading decision making.
Other agencies tend to focus on selling their data and use static methods or once-a-year regression approaches to explain market dynamics. This was perhaps sufficient a decade ago but is not enough for modern markets and categories where shoppers switch between offers on a daily basis.
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