Describe What-if promotions analysis

22 Jun 09

Periodically the business needs to develop a new strategy for the next budget period. The Promax PX strategy planner is the ideal tool to enable the account manager to model a variety of approaches to the promotional programme for the new period. Typically the account manager would want to create a scenario for each approach to the customer and the promotional programme, comparing them to see the difference in the financial outcome.

The strategy planner in Promax PX has been specifically designed to enable this scenario planning (What If Planning) to be carried out. Promotional programs can be rapidly constructed with productivity tools that enable cut-and-paste and repetitive copy. The graphical environment facilitates a drag-and-drop mechanism with colour coding of each promotional type.

The spreadsheet style of Promax PX facilitates an easy “what if” analysis of an individual promotion, and entire promotional program or multiple scenarios involving the exploration of pricing elasticity and promotional frequency. Tools like the strategic optimiser allow the business to explore new strategies of pricing and frequency to maximise profitability or marketshare objectives. The strategy planner allows the assembly of scenarios testing tactical plans for any group of products or customers. Full financial evaluation of every strategy is created and easy comparative techniques provide a clear path for the account manager to evaluate the best plan.