Improving promotional effectiveness in a crowded beverage category
Challenge & Objectives
A global beverage brand sought to optimize its promotional strategy to drive incremental volume without relying on deep discounting. The team wanted to better understand how different promotion types and price points influenced consumer behavior at the point of sale.
The brand was investing heavily in trade promotions, but needed clearer guidance on which offers actually drove growth versus those that simply shifted volume. With a wide range of SKUs and price points, identifying the most effective promotional levers was a complex task.
Key questions
Which promotional mechanics are most effective for driving incremental volume?
At what discount level does the promotion begin to erode value?
How do different consumer segments respond to specific offer types?
How we did it
Astrea’s PPO Market Sales Estimator was used to simulate various promotional scenarios across the portfolio. By modeling different price points and offer structures, the tool revealed how consumers were likely to respond—and which promotions were truly incremental versus margin-dilutive.
Learnings & Outcome
The analysis uncovered clear thresholds where promotional effectiveness peaked, as well as diminishing returns beyond certain discount levels. It also highlighted specific SKUs that performed better with bundled or value-based offers rather than direct price cuts.
The client was able to refine its promotional calendar with greater confidence, focusing investment on high-return offers. These insights supported a more strategic approach to trade planning—helping the brand boost volume while preserving profitability.
