Loyalty One

Precima’s analysis demonstrates which grocery retailer trade promotions are most effective at driving profitability

Business Challenge
A leading grocery retailer was under tremendous competitive pressure on pricing, especially with Wal-Mart’s expansion into the grocery sector. To retain hard-won sales, it understood that it needed to sharpen its promotional strategy. However, it also recognized that gauging the effectiveness of a particular promotion would be quite complex, given the climate of the marketplace. Specifically, it realized that there were often competing offers from retailers and alternating deals from week to week. Precima was presented with the challenge of helping the retailer evaluate the success of its in-store promotions to optimize its promotional strategy.