Company Profile:
A leading toy store in UAE has started the journey in Al Ain, in the year 1990. With over 6000 toys to choose from, the stores offer an unrivalled range of unique and exclusive Toys for boys, girls, babies and toddlers and are the pre-eminent place for the Trending Toys, New Launches, and many other great values under one roof.
What was the brief?
Cannibalizes Existing Revenue
Reduced Profit
What did we do:
Because regular customers may develop the habit of waiting for coupons, it may cannibalise revenue generated prior to the introduction of the coupon programme. As a result, there was a need for carefully considered when and how to offer those coupons in order to avoid disrupting the existing customer base. Coupons may result in a lower profit on the item or items included in the coupon campaign, but the cost of manufacturing the product remains constant. So, there was the need to consider the value of a coupon campaign to the business and whether the discount will result in enough new sales revenue to offset the cost of the campaign in the long run.
