Identifying priority investment channels, customers & outlets

All organisations have a finite level of resource, whether that be financial or human, to invest in the trade. There are a number of ways to decide which sales driving activities to invest in and then to determine which channels, customers and stores will offer the best return (ROI).
To decide what to invest in please follow this link on ROI on customer promotional activity (BTL activity)

One way of deciding where to invest this finite resource is to take an ‘incremental revenue’ perspective to highlight those channels & customers which are most likely to deliver an uplift in sales. Overlaid with data on prices & margins, suppliers can then direct investment to the areas which will provide the best return.

Using a cost-benefit modelling methodology, combined with specific insight relevant only to the particular organisation (brand, consumer / occasion, shopper, trading relationships, etc.) Meridian helps its clients decide which channels to invest in.

Detailed analysis of sales driver compliance using store level EPoS data (such as Asda Retail Link, Tesco TIE, Sainsbury’s SID and Waitrose Connect) and audit data combined with delivered margin analysis allows specific customers, outlets and even SKUs to be prioritised.

This can result in a targeted execution plan versus opportunity that may for example drive dynamic field coverage to focus on known non-compliant stores on a particular promotion as opposed blanket ‘belt and braces’ coverage to support a promotion.

To find out how you can benchmark your approach to maximising ROI on Trade Investments at outlet level, or your in-house or 3rd party field operations against CPG best practice click here