Challenge

BRP, is a leading international manufacturer of snowmobiles, all-terrain vehicles, motorcycles, and personal watercraft including Sea-Doo, Ski-Doo, Quintrex and Evinrude

Across Canada and North America BRP manage a very large product promotions budget. Their promotion planning and management was significantly hampered by two main factors. Firstly, In order to get a cost estimate for a given sales promotion it took at least two days to create a cost estimate (limitation created by the very antiquated and semi-manual Microsoft Excel based process). Secondly, the costing process could only be done at a regional level with constraint on the amount of promotion complexity. The impact of the first constraint was to make being nimble and responsive in their sales promotions difficult. However the second problem meant their promotional funding allocations was inefficient because promotions would be offered where they weren’t required. This was caused because regions covered many states and across those states, not all would necessarily be missing their sales targets. So with stock limitations taken into account, they could be providing sales incentives for stock where it wasn’t required (margin erosion).