Problem statement

As PwC-Diamond you are expected to deliver on the following fronts:

  • Modify the discount strategy for Energ-I, such that its revenue for the coming year is maximized. The company is also planning to launch a pan-India marketing campaign for the discounts in price, therefore they want the price of the beverage to be the same across all the stores at any point of time. It will give discounts for a maximum of 20 weeks, and no discounts for the rest of the year. Since the company is not certain about the discount strategy; it does not want to spend more than $2 million as cost of investment1 on discounts in the next year. One year’s (October ’11 – September ’12) point of sales data, provided in the file: 2013_D'Facto_Weekly_Sales_Data.xls, lists the weekly volume and revenue (in $) of the sports drink for each store. Assuming the sales pattern and volume for the coming year is similar to the one provided in the historical data, devise a discount strategy to match D'Facto Corp’s requirements.
  • Propose suitable channels to market the discount strategy of Energ-I. The client has allocated appropriate budget for pursuing few channels to market the product, and expects most effective and innovative channels, which have high return on investment. Make reasonable assumptions of the costs for the different channels to come up with the marketing strategy.
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