Originally Published on: QuantzigHow we Helped FMCG Client To Measure Cannibalization at an SKU Level
In a strategic partnership, Quantzig collaborated with a distinguished consumer goods manufacturer headquartered in the USA. Operating with a dedicated workforce across the USA, Europe, and Asia, the client grappled with comprehending the impact of cannibalization on their SKUs, introducing complexities in strategic decision-making and resource allocation. The client's strong emphasis on brand-level ROI inadvertently obscured critical shifts in demand between brands, further compounded by limitations in SKU-level cannibalization analysis within the in-house analytics team.
Innovative Solutions: Quantzig's advanced model intricately scrutinized sales dynamics, encompassing competitive activities, category expansion, and promotional strategies. A decomposed model delved into demand transference among SKUs, evaluating both marketing impact and cannibalization effects. A specialized measurement tool offered real-time insights into immediate cannibalization impact, leveraging a PowerBI dashboard and a Python model on an Azure container.
Impact Realized: Implemented strategies yielded invaluable insights into SKU-level cannibalization, facilitating the reallocation of 15% of the budget and streamlining promotion planning within a mere 3 days.
Client's Profile: A leading consumer goods manufacturer headquartered in the USA, renowned for its diverse product range, the client faced challenges in measuring ROI at the brand level and orchestrating cohesive marketing efforts across their expansive portfolio.
Overcoming Challenges: The client's focus on brand-level ROI resulted in resource allocation inefficiencies, while a lack of coordination impeded improvements in category share. Limited SKU-level cannibalization analysis posed hurdles to strategic decision-making.
Strategic Interventions: Quantzig's model unraveled the intricacies of sales drivers, optimizing competitive actions, category growth, and promotional strategies. Simultaneously assessing marketing impact and cannibalization, the decomposed model provided comprehensive insights. The dedicated tool, coupled with a PowerBI dashboard and a Python model on an Azure container, seamlessly integrated visual appeal with advanced machine learning capabilities.
