Case Study: CPG & FMCG

CPG FMCG Case Study3

CASE STUDY 03 · CPG / FMCG · SKU ANALYTICS & TRADE SPEND They Were Growing Fast. The Wrong SKUs Were Growing Faster. A packaged snacks company in the Northeast had been climbing topline numbers for two years straight. What the data eventually revealed was that 19 of their SKUs were quietly eating into everything they gained.

INDUSTRY

CPG — Packaged Snacks & Grocery

GEOGRAPHY

Northeast & Midwest United States

ENGAGEMENT

14 Weeks

Key Outcomes

11%

reduction in ineffective

23%

improvement in

$1.4M

projected annual saving

26%

On paper, the business was doing well. Topline sales had grown year-over-year for two

IndustryCPG & FMCG

RegionUnited States

Tech Stack

Python · AWSRedshift · Tableau ·Meta & GoogleAPIsResults at a Glance19lossmaking SKUsidentified and rationalized11%reduction in ineffectivetrade promotion spend23%improvement incontribution margin$1.4Mprojected annual savingfrom SKU rationalizationAbout the Clientwith a portfolio of 85 SKUs acrosschipstrail mixesand betterforclub storesand convenience channels across 14 statesbacked by a network of regional distributors.What Was Actually Going OnOn paperoveryear for twoand the CFO had a nagging sense thatsomewhere in the portfoliomoney was leaking. He just didn't know where.on their campaign dashboards. Meanwhiletrade promotionsfreightand COGS inone placenobody could prove anything definitively.distributors — buytwogetone offersoffinvoice discountscoop advertising contributions. Theseactually sold through at the shelfmaking distributors happy.Meanwhilereported ROAS — which lookedat clicks and attributed purchasesbut didn't account for freight costspromotional deductionsor whatloss when the full picture came together.Where the cracks were showing:No single view of true SKUlevel profitability after trade spendfreightand ad costsrelationshipsnot resultstoserveadding proportionate valueWhat DataVines Didevery SKU. Not just gross salesbut net contribution — after cost of goodsfreighttrade deductionsper SKUper channelupdated monthly.Connecting the data that had never been connectedPulled and harmonized salesCOGSbeing promoted in each ad setwith weekly refreshschedulesBuilding the SKU profitability enginefreighttrade deductionsand allocated digital ad spendBenchmarked every SKU against categoryaverage contribution margin — flagging anythingperforming below thresholdmargingrowth trendand promotional ROIcosts were accounted forMaking trade spend accountablesellmargin SKUsrather than highvolume onesTechnology UsedPython AWSRedshiftTableau SAPBusinessOne APIMeta Ads API Google AdsAPIWhat Changedportfolio on a single pagemakingSKUs were immediately visible — not as a surprisebut as a confirmation of what Finance hadsuspected and Sales had resisted accepting.production runsfewer warehouse slotssaving from eliminating those SKUs was $1.4MOn the trade sidea demonstrated lift history.Perhaps most importantlyboth teams now started from the same SKUwhich to let declineand where to focus theWhat Comes NextDataVines is building a forwardmarginprofilesstrategy.

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