Optimising Supermarket Promotions of Fast Moving Consumer Goods(FMCG)
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The use of price promotions for fast moving consumer goods (FMCG's) by supermarkets has increased substantially over the last decade, with significant implications for all stakeholders in terms of profitability and waste. The overall impact of price promotions depends on the complex interplay of demand and supply side factors, which has received limited attention in the academic literature.A better understanding of consumer demand, through the use of disaggregated sales data (by shopper segment and store type) can facilitate more accurate forecasting of promotional uplifts and more effective a...
The use of price promotions for fast moving consumer goods (FMCG's) by supermarkets has increased substantially over the last decade, with significant implications for all stakeholders in terms of profitability and waste. The overall impact of price promotions depends on the complex interplay of demand and supply side factors, which has received limited attention in the academic literature.A better understanding of consumer demand, through the use of disaggregated sales data (by shopper segment and store type) can facilitate more accurate forecasting of promotional uplifts and more effective allocation of stock, to maximise promotional sales and minimise promotional waste. This book explores the scope for improving the planning and execution of supermarket promotions, in the specific context of products supplied by SME, through the use of dis-aggregated sales data to forecast promotional sales and allocate promotional stock.An innovative case study methodology is used combining qualitative research to explore the promotional processused by SMEs supplying the UK's largest supermarket, Tesco, and simulation modelling, using supermarket loyalty card data and store level sales data.
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