The Profund solution maximises turnover or margin through optimization of Promo Funds based on ROI analysis

Who

Key principle behind Profund is to help consumer goods companies deliver sales and margin gains through re-allocation of trade funds in challenging markets. We align Profund with your strategy, planning and budgeting process, as a critical success factor is delivering the right insights at the right time to the right stakeholder – from day 1

What

Profund looks at your promotional investment from a portfolio perspective and identifies those opportunities driving most revenue and profit. In all cases, optimization is made possible by reallocating promo funds from less to more “efficient” markets / channels / customers / categories / brands / ...

How

Exploiting the most advanced integration between predictive and prescriptive analytics techniques, Profund provides evaluation, insight and recommendation on how promotional fund budgets should be established and allocated.

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Reporting and Monitoring

Monitor the actuals and check the progress of margins, sales, funds and ROI with respect to your target.


Understand where spend sits today and how it performs (ROI)


Uncover opportunities on a brand/pack, category, channel and customer or country level.

Integration

  • Only move budget where realistically possible

    Profund considers your existing P&L structure where needed, ensuring recommendations are not just a theoretical exercise

  • Right insight at the right moment in the process

    We align Profund with your strategy, planning and budgeting process, as a critical success factor is delivering the right insights at the right time to the right stakeholder – from day 1

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Profund relies on an advanced integration between Machine Learning and Constraint-based Optimization methods

Deep Learning Models

The Profund Optimizer is based on a proprietary integration between state-of-the-art AI technologies, such as Deep Neural Networks, Gaussian Processes, Constraint Programming, Large Neighborhood Search, Mixed-integer Programming.


These advanced models are used to learn for each product - customer the hidden relation between funds, price, discounts, time and quantity.

Optimization Models

Leveraging the knowledge of the AI models and the user constraints, the core of Profund is an innovative hybrid optimizer computing the optimal funds allocation of hundreds of products in terms of seconds

Profund lets the user add personalized constraints and objectives, over single or groups of products - customers.


Re-allocation criteria:

  • Max increase/decrease of budgets
  • Turnover or Profit maximization
  • Margin improvement
  • % investment in strategic growth channel or customer

Trade Fund Optimisation Curve

Trade Fund Optimisation Curves lie at the heart of our solution. Each Trade Fund Optimisation curve has a ceiling spend level, the point at which we start to get less back than we put in (very little impact on total turnover or profit)


If you are interested, please contact us.