RGM · Promo & Trade-Spend ROI
Promo-ROI model (uplift − cannibalization → incremental margin ÷ spend). Hurdle 1.2×. Research: ~⅓ of promo uplift is genuinely incremental; ~70% of promos lose money.
🧠 AI Advisor — what this is · focus · where to fix · what to do
What this is
Promo ROI and pricing ladder analysis for Everest Spices General Trade.
What to focus on
- All 6 promos are below ROI hurdle; average ROI is just 0.26 (vs. expected >1.0).
- Largest spend is on "New Launch Trade Foisting" (₹132.1cr, ROI 0.3) and "Summer Cooler Combo" (₹58.9cr, ROI 0.27).
- Price ladder is extremely steep: <=25g at ₹10,774/100g vs. >500g at ₹52/100g.
Where to fix
- "Kirana Loyalty Points" ROI is lowest at 0.18, burning ₹65.9cr for only ₹53.5cr net incremental sales (₹12.4cr loss).
- "Damage/Expiry Support" delivers just 0.15 ROI (₹32.2cr spend for ₹22cr net incr.; ₹10.2cr loss).
- Small pack pricing (<=25g) is 207x higher per 100g than >500g, risking volume loss in entry packs.
What to do
- Suspend Kirana Loyalty Points and Damage/Expiry Support promos — Owner: National Sales Manager · How: Immediate withdrawal of low-ROI schemes · Impact: Save ₹98.1cr spend, reduce ₹22.6cr negative ROI drag · By when: 30d
- Recalibrate small pack pricing — Owner: Category Head · How: Reduce <=25g per-100g price premium to <5x vs. >500g · Impact: Unlock entry pack volume, mitigate downtrading risk (est. +5% volume in <25g) · By when: 60d
- Redesign "New Launch Trade Foisting" with stricter payout gates — Owner: Trade Marketing Lead · How: Link payouts to sell-out, not just buy-in · Impact: Improve ROI from 0.3 to >0.7, recover ₹80cr+ in promo efficiency · By when: 60d
Auto-generated 19 Jul 2026, 23:29 · grounded on live page data · gpt-4.1
⚡ Do this next — 5 actions
Opportunity
Release blocked PO value ›
3-way price-variance invoices held from payment · owner: Supplier Risk
₹10.26 cr
Run agent →
Opportunity
Fix Quick-commerce margin (13%→20%) ›
Q-com net revenue × 7pp contribution-margin recovery · owner: RGM / Cross-Sell
₹1.01 cr
Run agent →
Opportunity
Settle / recover trade claims ›
Unsettled scheme claims (50% recoverable / disputable) · owner: FP&A / Variance
₹0.95 cr
Run agent →
Opportunity
Convert whitespace outlets ›
Un-billed outlets × annual potential × 25% capture × 38% GM · owner: RGM / Cross-Sell
₹0.27 cr
Run agent →
Alert
Quick Commerce margin dilutive at 13.0% ›
Re-negotiate platform commission; shift to higher-price packs (PPA); cap promo depth.
CM 13.0%
Run agent →
Trade spend
₹375.2 L
Blended promo ROI
0.26×
Below hurdle
6 / 6
Net incremental sales
₹4.4 cr
Promo waterfall (₹ L)
Price-per-100g ladder (price-pack architecture)
Smaller packs carry higher ₹/100g — the entry-price → premiumisation ladder.
Scheme ROI ranking
| Scheme | Channel | Spend ₹L | Net incr ₹L | ROI × | Verdict |
|---|---|---|---|---|---|
| QPS Festive Q3 | General Trade | 29.5 | 49.9 | 0.37 | Below hurdle |
| New Launch Trade Foisting | General Trade | 132.1 | 180.3 | 0.3 | Below hurdle |
| Summer Cooler Combo | General Trade | 58.9 | 72.8 | 0.27 | Below hurdle |
| Diwali Consumer Bonanza | General Trade | 56.5 | 62.5 | 0.24 | Below hurdle |
| Kirana Loyalty Points | General Trade | 65.9 | 53.5 | 0.18 | Below hurdle |
| Damage/Expiry Support | General Trade | 32.2 | 22.0 | 0.15 | Below hurdle |