Promotions and Space Planner — What If Analysis

The Promotions and Space Planner is a What If Analysis tool that permits users to optimize shelf space and promotion plans.

It provides details of brands’ baseline sales in volume and value, list prices and regular prices. And it estimates projected sales including losses if any due to stock outs.

You may switch from volume to value by clicking the spin buttons.

The platform permits you to chalk out promotion plans in terms of price discounts, displays and feature or co-op advertising. It also allows you to set facings.

Detailed descriptions of these parameters are provided at the bottom of the web page.

The SET button below the facings header, automatically assigns the facings in proportion to brand sales. For training purposes, this button may be deactivated.

The ALL CLEAR button clears all entries, setting facings to the minimum level of 2. Doing so severely reduces forward stock, increasing the likelihood of stock outs for most brands. You need to re-assign facings to eliminate out of stocks, and optimize inventory levels.

Now, suppose you want to promote Koko Krunch at the discounted price of $4.95 combined with a large feature advertisement, you simply click the dropdown boxes to make these selections.

Note that if a brand with inadequate facing is promoted, the likelihood of stock out situations will increase. To prevent this, you may either increase the facings, or place the brand on display.

In the above video, in addition to Koko Krunch, Shreddies is promoted at the discounted price of $5.10, with an endcap or gondola end display, and a large feature ad.

The impact of this promotion plan is depicted on the screen in terms of increase in projected sales of Koko Krunch and Shreddies, and decrease in sales of the brands that are being cannibalized.

At the top of screen you see the utilization of facings, and display.

At the bottom you see the overall impact of this promotions plan on total category sales. Whereas the category gained in volume, the total sales value declined.

Refresh latest saved data. If you (or your team) are using multiple devices, use this facility to restore latest data from the server.

Total Facings: 83 (max = 100).
Total Regular Displays: 0 (max = 8)
Total Endcap Displays: 0 (max = 4)
Total Special Displays: 0 (max = 2)

Promotions and Space Planner — What If Analysis
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Brand Name	Baseline		Projected		OOS	List	Regular	Discount
	(unit)	%	(unit)	%	Loss	Price	Price	Price	%
Koko Krunch	28774	9.5	24249	8.1	4525	4.80	5.65
Milo	24086	7.9	24086	8.1		4.60	5.65
Honey Stars	8530	2.8	8530	2.9		4.70	5.65
Nesquik	8425	2.8	8425	2.8		4.30	5.30
Golden Nuggets	6820	2.2	6820	2.3		5.00	6.20
Frosted Flakes	14301	4.7	14301	4.8		4.30	5.25
Froot Loops	13246	4.4	13246	4.4		4.70	5.80
Coco Pops	11373	3.8	11373	3.8		4.90	6.00
Apple Jacks	10737	3.5	10737	3.6		4.50	5.50
Smorz	9873	3.3	9873	3.3		4.90	5.90
Shreddies	12019	4	12019	4		4.10	6.20
Clusters	7698	2.5	7698	2.6		5.50	6.60
Corn Flakes	14111	4.7	14111	4.7		4.40	5.40
Shredded Wheat	8505	2.8	8505	2.8		4.40	5.20
Wheaties	9234	3	9234	3.1		4.40	5.50
Total	6752	2.2	6752	2.3		4.60	5.50
Just Right	9983	3.3	9983	3.3		5.70	6.90
Blueberry Morning	18566	6.1	18566	6.2		4.50	6.20
Honey Bunches	16606	5.5	16606	5.6		4.00	5.90
Raisin Bran	10185	3.4	10185	3.4		4.00	5.80
Grape Nuts	9926	3.3	9926	3.3		3.70	5.45
Banana Nut Crunch	8664	2.9	8664	2.9		3.70	5.45
Cheerios	6321	2.1	6321	2.1		4.70	5.65
Special K	22355	7.4	22355	7.5		5.60	6.90
Mueslix	6022	2	6022	2		6.40	9.50
TOTAL CEREALS	303112	100	298587	100	4525	4.65	5.92	5.92	0

Merchandising Notes and Guidelines

Baseline sales (units) is the weekly baseline sales, or the average sales of the items in those weeks where there are no promotions and no stock outs.
Projected sales (units) is the estimated weekly sales based on all causal factors (promotions, merchandising).
List Price is the unit price at which the retailer procures the items.
Regular Price: is the usual (undiscounted) shelf price.
Discounted Price: is the shelf price after discount. (Keep blank if there is no discount).
Facings: For items, minimum facings = 2 and maximum facings = 8.
The category shelves can accomodate 100 facings. (All packs have the same dimensions — 11.5 inches × 9.5 inches × 2.75 inches).
Items for which the share of facings : share of sales ratio is low are likely to experience stockouts. However, if they are on display, in that case there will not be any stockouts.
Sales of items stocked at eye level on shelves 2 and 3 (from top) are expected to increase by 1.5%, and sales of items at the bottom shelf are expected to decline by 3%.
Displays: Display options include regular, endcap or gondola end, and special arrangements such as block stacks at vestibules. The special displays are the biggest and most impactful.
For the breakfast cereals category, stores can accomodate no more than 8 regular displays, 4 endcap displays and 2 special displays .
In-store displays use available store space and there is no significant cost incurred by the retailer.
The retail chain earns $2,000 from suppliers for each product, each week on regular display, $3,500 for endcap (gondola end) displays and $5,000 for special displays.
Features are co-operative advertisements in newspapers, pertaining to in-store promotions. The cost of these ads is split 50:50 between retail chain and supplier.
Large feature inserts cost $1,200 whereas smaller inserts cost $800.
Promotions plans are set every week.

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Video How to use the Promotions and Space Planner.

Promotions and Space Planner — What If Analysis

Promotions and Space Planner — What If Analysis .

Promotions and Space Planner — What If Analysis
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