Transforming Price and Promotion Strategies for a Leading Brewing Company

The Challenge

A prominent Dutch brewing company faced significant challenges in managing its price and promotion strategies for fast-moving consumer goods (FMCG). Traditionally, the company relied on intuition to negotiate promotion calendars and trade terms, often resulting in suboptimal agreements. This approach led to missed opportunities and lacked a strategic direction in their promotional efforts.

How ORTEC Creates Value

ORTEC intervened to revolutionize the company's approach to sales data analysis. By breaking down sales figures into baseline and uplift components, ORTEC enabled a more precise evaluation of promotional impacts. An automated data transformation process was implemented to minimize the time and effort required for recurring analytical tasks. Additionally, ORTEC developed customized PowerBI reports, equipping the company's operating countries with insights tailored to their specific market needs.

Impact & Benefits

The partnership with ORTEC yielded several significant benefits:

• Enhanced Understanding of Promotions: The company now possesses a clearer understanding of promotion performance, facilitating more informed decision-making.
• Insight into Value Chain Margin Split: Insights were gained into how margins are distributed along the value chain, providing a clearer financial picture.
• Increased Efficiency for Revenue Management Teams: With reduced need for manual data preparation, revenue management teams can now focus more on analyzing insights and less on data processing.

Through ORTEC's data-driven solutions, the brewing company has refined its pricing and promotional strategies, leading to more effective agreements and a strengthened competitive stance in the FMCG market. The transition from intuition-based to data-backed decisions signifies a major advancement in the company’s operational strategy, establishing a new benchmark for excellence in the retail sector.