Originally Published on: QuantzigHow we Helped FMCG Client To Measure Cannibalization at an SKU Level
Client Overview: Our recent collaboration was with a leading consumer goods manufacturer headquartered in the USA, operating across the USA, Europe, and Asia, with a dedicated workforce of 600 employees.
Challenges Faced: The client struggled with understanding the cannibalization effect on their SKUs, hindering decision-making and resource allocation. Limited tools and a focus on brand-level ROI overlooked vital demand shifts and hindered effective resource distribution.
Innovative Solutions Deployed: Our advanced model dissected sales, considering competitive activities, category expansion, and promotional strategies. A decomposed model analyzed demand transference among SKUs, allowing simultaneous measurement of marketing and cannibalization effects. A dedicated measurement tool gauged immediate cannibalization impact. The integration of PowerBI dashboard and Python model on Azure provided powerful insights.
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Impact Achieved:
- Insights into SKU-level cannibalization
- 15% wasted budget reallocated
- 3 days for promotion planning
Client Snapshot: A leading consumer goods manufacturer in the USA with a diverse product portfolio and a global presence.
Addressing Challenges: The client faced challenges due to a sole focus on brand-level ROI, causing inefficiencies in marketing resource allocation and missing demand shifts between brands.
Comprehensive Solutions: Our model dissected sales drivers, including competitive actions and category growth, optimizing campaigns. A decomposed model addressed SKU-level cannibalization, and a dedicated tool measured immediate impacts. The PowerBI dashboard and Python model integration enhanced decision-making.
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