One of the best ways to understand your promotional effectiveness is to use the Promotion Tracker in ToolBox Advantage – the world’s leading category management solution. The Promotion Tracker allows you to see the week-to-week impact of baseline sales versus incremental sales for a product. Dividing the total sales by the baseline sales gives us the promotional week’s lift which is a measure of the effectiveness of a promotion. In addition, you can view the promotional conditions that were present during the promotion such as the temporary price reduction, the distribution of display and the flyer distribution. With this information we can compare various promotions and infer the effectiveness that is generated by the price point and varying levels of display.
A category manager would also want to know whether the promotion drove total sales for the category or sub-segment in addition to the advertised product. Thankfully, the Promotion Tracker allows for a benchmark product to be included so the overall volume can be assessed. With this, we can learn whether shoppers just traded off regular purchases they were going to make in the category for the item that was on sale. Finally, year ago measures can be added into the report to allow a category manager to learn whether key promotion weeks such as Super Bowl weekend or the Labour Day long weekend drove more or less volume than the prior year.
Using the Promotion Tracker report lets you make better decisions on trade spend and improve the return that is derived. You can learn lessons on improving promotional execution, validate the price points you are using, and ensure the assortment you are putting on promotion is optimal!Tags: category management, category management reporting, category manager, promotion tracker, promotional execution, ToolBox Advantage