Aggregate Sales and Traffic Forecasting
This QSR corporate entity needed to analyze and make decisions based on large quantities of data that were available daily. They needed predictions and scenarios for decision- makers at the franchisee and individual manager level to react appropriately: decisions about advertising and promotional offers were top priorities.
How much advertising and promotion to create to counter the variances? Would they be based on price points or other factors such as new product promotions, coupon drops, and in-store advertising?
It was necessary to decompose the problem by first understanding the company’s current processes and insights into market behavior. We needed to look at decisions that are made by the minute, hour, day, week, month, and quarter—moving along the path from tactical to strategic decisions. A2Go provided “microapps” targeted by decision to individuals performing decision-making roles in the process.
The company was able to optimize its marketing spend by more accurately forecasting sales and traffic and by comparing multiple “what-if” scenarios.
Led to as much as 10% less marketing spend
Regional Sales Demand Predictions
Quick-Service Restaurant: A quick-service restaurant chain in Brazil with over 1,000 locations needed to improve efficiency within operations, marketing, and sales. It asked for assistance in reducing waste from overestimated sales forecasts and addressing loss of revenue due to material shortages.
A2Go developed an advanced-analytic, demand-prediction microapp to predict 30- and 60-day sales numbers for the company's major products. The microapp was used to understand primary demand-drivers, focusing on advertising spend and regional pricing data to identify patterns essential in providing demand granularity at the regional level.
Results: 90% average prediction accuracy for 30-day demand prediction and 93% average for 60-day demand prediction