The decision
A snack brand can spend ₹24,000 on retailer displays or offer ₹4 off with expected redemption on 8,000 packs. Comparable pilots estimate 3,000 and 4,200 incremental packs, respectively. Each extra pack contributes ₹10 before promotion.
Which promotion creates more value?
Worked solution
Reveal the visual and solution
- Use verified retail sell-through and comparable outlets. Keep incremental volume separate from all discounted sales.
- Displays earn 3,000 × ₹10 − ₹24,000 = ₹6,000. Consumer coupons earn 4,200 × ₹10 − 8,000 × ₹4 = ₹10,000.
- Choose the coupon if repeat contribution and shelf availability hold. Check retailer participation and stock levels to avoid shifting cost into the channel.