An Implemented System for Improving Promotion Productivity Using Store Scanner Data

“Single Source” databases based on scanner data offer new opportunities for evaluating promotions and improving their effectiveness. Decision support needs vary depending on the decision maker's organizational vantage point. Some managers require the evaluation of promotion results in the short term. Others should take a medium- to long-term focus. An implemented model and automated system for measuring short-term incremental volume due to promotions by developing baselines of store-level “normal” sales is presented using store-level scanner data. Empirical validation results and real life applications are presented and discussed, including the use of the baselines as measures of “brand health.”