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Trade Promotion Optimization:

From Art to Science

Διονύσης Δουζίνας – Αθηναϊκή Ζυθοποιία

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4.281

4.010 3.971

3.893

3.822

3.708

3.834

3.734

3.780

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

BEER VOLUME KHLS

39 36 36 35 35 34 36 35 36 36 37 37PER CAPITA CONSUMPTION

Beer Market evolution in GreeceA 10% loss of volume during the crisis

Source: Statista Global Beer study 2018

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OUR PORTFOLIO OF BRANDS

Athenian BreweryThe largest Beer Producer in Greece

3 Breweries

2Malting Plants

1Water Plant

900 Employees

4Beer Route to MarketOnly 30% of our total volume is delivered directly to the final outlet

50+ Breweries

900+ Distributors

100.000+ Outlets

9.000.000 Consumers

What is the main challenge related to our promotions evaluation?

Full visibility of their performance only in a limited part of the market

(<20)

In 2010

5Beer Promotions in Modern Retail Then & NowA few years ago promotions were the exception. Now, are the rule!

▪ Fewer Brands/skus

▪ Only National Promos (On Packs)

▪ Mainly Consumer Gifts

▪ Evaluation based on Sell In

▪ ROI – What is this???

< 25%Promo Pressure

▪ A lot of Brands/skus

▪ National & Tailor Made Promos

▪ Price reduction or Free Product

▪ Evaluation based on Multiple data sources

▪ ROI – Advanced analytics

> 65%Promo Pressure

6Trade Promotion OptimizationWe need to answer 3 Questions

The Goal

WHY PROMO

The Promo Mix

The Promo Mechanisms

WHAT PROMO

The In-Store Promo Execution

HOW PROMO

7Why Promo?We need to understand if promo will affect demand The first question is the

most important. The

answer will define your

goal & your promo

strategy.

Market, Consumer,

Shopper & Category

knowledge is crucial Penetration Frequency Upsize/Upscale

How the demand is being affected

8What Promo?A real life riddle

The goal is to

develop the

optimum promo

mix & mechanics

that will give us the

highest ROI

3 Product

Categories

29 Brands

> 110 Skus

1.000€Promo

Budget

Where to put the money?

9Here Comes the Science!In order to do promo optimization you need to understand where you are today. Our ORASIS solution:

ORASIS is a fully

automated tool that

analyzes data from

multiple sources

(internal & external)

ORASIS provides fast

& high quality insights

ORASIS is used to

evaluate past

performance but also

to run simulations for

the future

ORASIS has increased

our internal

capabilities and our

level of sophistication

Advanced & predictive analytics facilitate

decision making process

Base VC Margin Uplift Discount CannibalizationTotal

0,39M

0,18M

-0,11M

-0,04M

0,42M

-0,04M

10How Promo?We need to understand which is the most effective way to

execute a promo

In Store Marketing is here at the

“Moment of truth”

The most successful

promos are the

ones who interact

with the shopper in

all steps of buying

process

11How Promo?The Amstel World Cup Promo

Fully Leverage the

World Cup platform

& achieve great

results:

Value sales: +7,2%

+14,1% +23,6%

Penetration Spend per Trip

Source: Nielsen – Kantar Homepanel - ORASIS

ROI = 11,0%

12SummaryTo do promo is very easy, but to do the “right” promo is a whole different story

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To do promo optimization you first need to

understand where you are today

Run the Promo Optimization exercise on

portfolio level

Answer the 3 Questions: Why, What, How

Use your best available insights to develop

promo “golden rules” & follow them

Evaluate & Improve

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Trade

Promotion

Optimization:

Put some More

Science next to

Art