SPINS TradeROI Helps a Beverage Brand Maximize their Trade Dollars

Executives at a beverage brand knew their product was performing well in retailers, but they couldn’t pinpoint where they were having the most success. Which retailers were giving the most return? Which seasonal promotions attracted the most customers?  

In an effort to maximize their investments, they implemented the SPINS TradeROI solution at 5 of their key retailers, which accounted for $1.5 million of their trade spend. 

A Multi-angled Approach 

Working with their SPINS representative, they looked at their current trade promotion costs, promotional calendar and offers, and product margins across these 5 retailers. Looking at the intuitive and detailed visual dashboards in TradeROI, the executives were able to dive into the performance of each promotion and look at results by retailer, quarter, and product size. 

The data was clear: The brand was experiencing significant loss (-62.1%) in one outlet but was receiving an extraordinary return (72.7%) in another. Two other retailers had modest returns while another showed stronger numbers.  

Analysis by quarter also told an equally stark story. Q2 promotions yielded a 12.6% return and Q1 of the following year showed smaller success. The quarters in between, however, were at a marginal loss.  

When executives studied the performance of their products by packaging size, the data laid out another indisputable summary: Their smallest beverage size showed the highest ROI of 35.2%. Their largest size gave a 9.9% return, but their middle size was actually bringing in a -1.3% ROI loss.  

Easy decisions 

Armed with this data across 3 categories, the beverage brand’s team knew what to do. They had an immediate opportunity worth $225,000, or 15% of their trade spend. They reallocated their trade promotion dollars with an emphasis on their highest performing retailers. They also adjusted their promotional calendar to match the seasonal opportunities and focused on the sizes that saw the most traction. Now, the team can maximize their retail relationships, plan their promotional cycles effectively, and get the right product sizes in front of shoppers. 

If you’re interested in understanding how you could be spending your trade budget, contact SPINS today to learn more about TradeROI. 

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