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The Promotion Strategy That Increased Unit Sales by 20% in 3 Weeks

+23%

Increase in unit sales predicted

+20%

Uplift in unit sales achieved over first three weeks

Background

Promotion     iconscasestudyanon03  Food & Beverage |  iconscasestudyanon01 Global

 

The company is a leader in the food and beverage industry, with top positions across a variety of product categories.

Its diverse portfolio features well-known brands in both the dairy and beverage sectors.

In Q2 2024, the company delivered strong results, with consolidated sales growing significantly on a like-for-like basis. Increases in both volume and pricing adjustments drove this growth.

Challenges

With no ability to compete on price, the manufacturer needed to find other ways to drive sales growth while maintaining its premium positioning.

Balancing growth and price integrity in a highly competitive market was essential to the manufacturer’s long-term strategy.

 


Fierce competition

The manufacturer was experiencing significant competition in their category, with a leading competitor outperforming their product portfolio by up to 9x in sales volume.

 


Increase in sales volume

The manufacturer aimed to increase their sales volume while maintaining premium pricing across their core product line in the top 5 UK supermarkets.

 


Line-priced products

The brand’s products were line-priced across all UK supermarkets, meaning there was no pricing advantage to differentiate the brand from competitors.

 

Tested Strategies

With Buynomics software, the manufacturer was able to simulate various pricing and promotion hypotheses for both their own products and those of their competitors.

 

Strategies Tested

  • Increasing promotion frequencies ranging from 12 to 26 weeks.
  • Various base and promotional price points ranging from £2.30 to £1.50.

 

Results

The optimal scenario identified lowering the base price to £2.10 while increasing promotion frequency and depth.

Results

By leveraging the Buynomics software, the team was able to quickly and accurately identify a targeted strategy and implement it in the market.

 

+23%

Increase in unit sales
was predicted by the
Buynomics tool for the scenario the team chose to implement.

 

+20%

Uplift in unit sales
was achieved over the
first three weeks at
Tesco alone.

 

 

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2-4%

Profit impact*

95%

Predictive Accuracy*

80%

Faster Decision-making

*Depending on data quality and completeness