Success Stories
Retail life cycle management—developed a promotional system for increasing effectiveness
Customer
A consumer-owned business with businesses spanning from food to finance, farms to funerals, it employs 70,000 people in the U.K. and has sales of over £7.7 billion.
The Challenge
The customer was facing the following business problems:
- Promotions ignoring demographic and locations leads to lower promotional effectiveness
- Rigidity in promotional period definition
- No predictable approach for promotion selection and forecasting.
- Underutilization of promotions leading to in-effective consumer response and additional cost overhead.
- Rigid pricing structure across regions leads to failure in the local market competition.
HCL’s Solution
Sales Filters—Introduction of sales filter criterion to exclude typical demand due to non-availability, strong promotional activity, etc.
- Store specific promotional plan and store briefs to include demographics, local market response and consumer behavior perspective.
- Mid week promotion approach to add flexibility in promotional periods.
- Promotional effectiveness forecasting based on historical performance supported by statistical model.
- Restructuring of the store clusters to include flexible pricing at store and product group combination.
- Annual benefit of £22,000,000 over a period of five years.
- Target-based promotional campaign.
- Increased promotional effectiveness across all demographics and consumers.
- Business process complaint with the vision of near future ERP implementation.
