New Decisioning Insights Increase
Promo Spend Effectiveness and ROI

New Decisioning Insights Increase Promo Spend Effectiveness and ROI

Bombardier
Recreational
Products(BRP)

Solution
Sales Promotion Costing and Tracking Engine

 

Expertise
Data Engineering & Decisioning Insights

Bombardier Recreational Products(BRP)

Solution
Sales Promotion Costing and Tracking Engine

Expertise
Data Engineering & Decisioning Insights

Challenge

BRP, is a leading international manufacturer of snowmobiles, all-terrain vehicles, motorcycles, and personal watercraft including Sea-Doo, Ski-Doo, Quintrex and Evinrude

Across Canada and North America BRP manage a very large product promotions budget. Their promotion planning and management was significantly hampered by two main factors. Firstly, In order to get a cost estimate for a given sales promotion it took at least two days to create a cost estimate (limitation created by the very antiquated and semi-manual Microsoft Excel based process). Secondly, the costing process could only be done at a regional level with constraint on the amount of promotion complexity. The impact of the first constraint was to make being nimble and responsive in their sales promotions difficult. However the second problem meant their promotional funding allocations was inefficient because promotions would be offered where they weren’t required. This was caused because regions covered many states and across those states, not all would necessarily be missing their sales targets. So with stock limitations taken into account, they could be providing sales incentives for stock where it wasn’t required (margin errosion).

Solution

We built a Microsoft SQL based Sales Promotion costing engine that could ingest all of their product, sales forecast and other relevant data. This engine allowed their promotions management team to dynamically construct and cost sales promotions on a state basis for any combination of products (state limitation only created because this was the finest granularity of BRP’s forecast data). The system can accommodate multiple approved promotion contexts for ongoing comparison as well as up to 1000 concurrent promotion prototypes in a sandpit environment. The power of the promotion configuration tool is such that up to 55million data elements can be associated with a single promotion prototype. The system calculates using data for each model to which a promotion applies.

Impact

Impact

99.7% Reduction
in time taken
to cost
sales promotions

Elimination of sales promotions where not required

Ability to compare
sales promotions
budgets overtime

Future proofed with
ability to include
sales results for
analytical analysis

99.7% Reduction
in time taken
to cost
sales promotions

Elimination of sales promotions where not required

Ability to compare
sales promotions
budgets overtime

Future proofed with
ability to include
sales results for
analytical analysis

The process of costing promotions was reduced from two days to approximately ten minutes. Very complex promotions could be modelled based on any combination of products, states, time periods and take-up rates. Because of the granularity provided by the system, promotion funding allocation was greatly improved

Let’s begin your transformation. A call to walk the talk.