Before implementing our solution, the category's promotional efforts faced several critical challenges. With over a thousand promotions per month, many of them running simultaneously, there was a high risk of internal competition—promotions cannibalizing sales from other products within the same category and even the same store. This led to significant cannibalization, where sales were merely shifted from one SKU to another, instead of generating true incremental growth. In some cases, overstocking and unexpected drops in volume further compounded the problem, as clearance took longer than anticipated. As a result, there was no clear benefit to the category as a whole.

Planning was done manually in Excel, lacking visibility and strategic alignment. Commercial teams were under pressure to hit sales targets, but had limited clarity on whether the current promotional grid would achieve the required volumes. Without a robust forecasting tool, they could not confidently connect promotional activity with sales outcomes.

Additionally, promotional strategies were applied across regions, without adapting to the specific behavior of each store or the dynamics of local markets. This absence of personalization meant many promotions underperformed and failed to deliver the expected return on investment.

With our solution in place, we began an in-depth analysis of promotional effectiveness at the store level. It became clear that not all stores respond the same way to promotions. Some regions performed better with specific types of offers, while others showed little to no uplift.

Using this insight, we developed a promotional segmentation strategy by store type—factoring in location, shopper behavior, and historical performance. As a result, the client began to take a more strategic role in approving and adjusting promotional activities, only moving forward with those that would truly benefit the overall category.

The impact was clear. Thanks to a more data-driven and segmented promotional strategy, the business saw a 6% uplift in volume with no cannibalization, and a 7% increase in gross profit within the category.

This shift marked a transition from tactical, one-size-fits-all promotions to a smarter, more strategic approach. They now have the tools and visibility to approve, modify, or reject promotions based on their actual business impact—ensuring that every action contributes to category growth and profitability.