Case study card:

Portfolio optimisation for a beer wholesaler's retail clients

Portfolio optimisation for a beer wholesaler's retail clients

Vertical

eCommerce & Marketing

Business Challenge
Product and marketing experts struggled to find the optimal monthly campaigns to optimise and improve their clients portfolio. The aim was to maximise sales based on demographic appropriate selections of products.

The products to be pushed that month and their target demographic were selected using the experts metrics and “gut feelings” about which products were suitable to each demographic.

The receiving clients were selected if they sell to the desired target demographics without taking into account what they have bought before, resulting in reduced effectiveness.

Business Solution
Using census and geographical data the POCs (point of consumption) were clustered together based on their similarity. Then the POCs of each cluster were ranked based on a KPI like net revenue.

The portfolios of the best performers were replicated on the low performers based on their leader-follower similarity (to ensure that they both have a similar target demographic).

Outcome
Developed a flexible and modularised solution which generates the optimal portfolios using a fast and data driven approach. Net revenue was increased in $10M and the process to execute campaigns was reduced from 2 weeks to a day. Due to its success and flexibility the solution has been replicated in all global markets.

Industry

Marketing analytics

Client

Confidential (world's major beer company)

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