Customer Story: Barilla Group

Optimizing Trade Promotion with Machine Learning

Like most markets in the consumer goods industry, the competition Barilla Group faces is increasingly fierce and forces companies to offer discounts in the pricing battle. In fact, businesses across the globe spend over $1 trillion annually on trade promotions – the second highest expenditure after COGS to stay ahead of competition (Nielsen). Yet, as POI’s market research has shown, managing trade promotion is a typical pain point for CPG companies and continues to be one of the greatest challenges in the industry.

Barilla Group worked with Neal Analytics, Ernst & Young, and Microsoft to create a solution to enable Key Account Managers to create trade promotion plans with optimized ROI and guide trade marketing strategies that will propel them in the fast-changing and competitive market. The collaboration drove the development of a cloud-based analytics solution that could evaluate the cost and benefit of past promotional campaigns and predict future campaigns’ ROI on-the-go.

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