Revolutionising FMCG revenue management: Nucleoo’s AI-powered trade promotion master

Because vendors of FMCG face fierce competition everywhere, optimal revenue management is of tremendous importance. This fast-growing SaaS struggled with integrating and manipulating large amounts of product data that could be turned into insights that later increase promotions profitability.

The company’s flagship product was a system used for promotion management. It aggregated product information and produced different sorts of reports, dashboards and graphics so that companies that sell consumer packaged goods (CPG) can obtain the most relevant information on promotion performance. The solution co-developed by Nucleoo consisted of a high-level data portal that showed how promotions were performing at any moment. For instance, by using this tool, was possible to offset actual profit compared to predicted profit. Through complex calculations, it took into account thousands of variables that defined the final price of each promotion, such as special dates like Black Friday and Christmas holidays, and accurately interpreted how sales had evolved during a five-year period. This analysis served then as the basis for future forecasts. Models were created “on the fly” by the system, trained and presented to the user.

Nucleoo is the strategic partner to develop, improve and support one of the most innovative AI solutions in the Fast Moving Consumer Goods (FMCG) market that automates forecasting of baselines, promotions and total revenue with high accuracy. It is the first trade promotion tool that applies AI to real data for large multinationals, using historical data and cloud-based machine learning tools.
The solution is aimed at selling CPGs to a supermarket with the maximum possible impact for the intended promotion goal (whether it’s volume, revenue, profit, penetration or repeats). A clever AI algorithm suggests most parts of the promotion entry, from automation of the promotion entry to optimization of the promotion performance. This is used by several tier 1 companies in America, Europe and Africa, with smart regional intelligence for specific market demands.

The innovative solution helps consumer goods companies achieve optimal revenue management and increases profitability through promotion entry automation and promotion performance optimization.