ISS recommended how to improve promotional roi in the carbonated soft drinks category

Promotional ROI

Background

  • The retailer (and collaborating CPGs) wished to understand which Carbonated Soft Drinks (CSD) promotions performed best, against the key metrics of incremental sales and incremental margin
  • ISS assessed these metrics, including the effects of both pull-forward and cannibalisation, to compare across all 2L and 12-pack promotions in the category

 

Key insight

  • There was a wide range in performance across the category promotions, with many not offering a good ROI for margin invested
  • 12-pack promotions typically provided a better ROI than those on 2l pack sizes

 

Outcome

  • Opportunities were identified to modify the promotional program and increase both sales and margin by $800k p.a.in the category

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