Promo ROI Fundamentals
Separate genuinely profitable promotions from accounting-accretive noise using the Net Incremental Profit bridge.
The Hook
Cross-industry published research finds that roughly 40–57% of FMCG trade promotions fail to cover their own subsidised-base cost.
Promotional volume looks impressive — a 150% uplift sounds like a win. But only 15–25% of that uplift is truly incremental to the category. The rest is a mix of forward-buying, competitive switching, and subsidising existing buyers who would have paid full price. When you net the subsidised-base cost against the incremental margin, the majority of promotions are unprofitable at the contribution line. The Net Incremental Profit bridge is the tool that separates the winners from the losers — and almost every FMCG portfolio has more losers than the management team realises.
Key Concepts — preview of 3 of 17
14 more concept cards in the full lesson — plus the interactive Sandbox, Challenge questions, and AI Strategist coaching.
The Sandbox
Interactive simulator — adjust variables and see outcomes in real time.
The AI Strategist
Senior-RGM coaching on every decision you make in the sandbox.
The Challenge
Scenario questions with auto-graded feedback and XP toward your certificate.
The interactive simulator and challenge are for members
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