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Promo Mechanic Selector

Compare TPR, BOGO, Multi-buy, Display-Only, Feature+Display, and a targeted digital coupon on a typical biscuit SKU, then watch the winning mechanic move as you change the retailer, the shopper base, and the objective. The same interactive model the full RGM Academy course uses for TPO Lesson 5, no auth, no paywall.

Updated 24 July 2026Extracted from the Trade Promotion Optimization module, lesson 5: Promotion Mechanic Selection
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Guided walkthrough

Explore the tool, from setup to common mistakes

Five short sections explain the scenario, what each control does, how to read the output, and the mistakes to avoid. Open whichever helps. The tool above works without them.

5.1Scenario setup

The starting SKU, market, and assumptions the model makes.

You are a Customer Marketing Manager preparing a Q3 trade plan for a national grocery account on a Mainstream Biscuits 250g SKU. Regular price $4.99, unit cost $2.10, full margin $2.89/unit (57.9% gross margin), baseline 5,000 units/week, two‑week event. The Sales team's draft has a TPR template, the Customer Marketing playbook has a multi‑buy template, the Category team is pushing Feature+Display, and Shopper Marketing wants to trial a targeted app coupon. Each lands very differently on the P&L, and the winner is not the same at every account.

Your job: compare all six mechanics side by side, find which one earns the most net profit at the account you are actually planning, and bring a mechanic recommendation to the JBP that the retailer will accept and Finance will sign off on. The tool makes the point most decks miss: the winning mechanic depends on the retailer, the shopper base, and the objective, not just the discount depth.

Your objective

Find which of the six mechanics earns the highest net profit at the default cell (a high-low retailer, a balanced shopper base, 20 percent funded depth), then change the retailer and the shopper base and watch the winner move. Set the objective away from profit to see the scoreboard change, walk the structured BOGO constructions and Multi-buy price points, and read where the targeted coupon fits.

Key assumptions
  • The tool models a single SKU at a single retailer event in isolation. No portfolio cannibalization, no competitive promo overlap, no halo to non‑promo packs. Cross‑SKU effects sit in the TPO Lesson 2 Source‑of‑Volume lesson.

  • The winner is context‑dependent. A high‑low account passes your full funded cut to the shelf, an everyday‑low‑price account banks part of it as margin (about a third), so the same price move is worth far less there. The shopper base tilts the response too: deal seekers fire price mechanics, convenience shoppers reward visibility, a loyal‑heavy base makes most promo volume non‑incremental.

  • The funded‑depth slider drives only TPR, Feature+Display, and the targeted coupon. BOGO and Multi‑buy carry a structural depth set by their own picker (a Buy 1 Get 1 half price is about 25 percent off, a 3 for $12 basket is about 20 percent), so they do not move with the slider. Display‑Only ignores depth entirely because it has no price cut.

  • Incrementality is fixed per mechanic at default depth and falls as the slider deepens. The targeted coupon is highest at 75 percent because it reaches likely responders, Display‑Only is constant at 70 percent because paid placement self‑selects new‑category shoppers, and TPR is lowest at 40 percent because a visible price cut subsidises loyalists first.

  • Pantry‑loading risk at the default cell runs highest for TPR (55 percent) and BOGO (54 percent), then Multi‑buy (40 percent) and Feature+Display (35 percent), lowest for Display‑Only (20 percent) and the targeted coupon (15 percent). The risk shown here is qualitative. The downstream post‑promo dip is modeled in the Promo ROI Calculator at TPO Lesson 1.

  • Fixed cost per event is built into each mechanic: TPR none, Multi‑buy $200, BOGO $500, targeted coupon $1,500 (a flat platform fee that never scales with the retailer), Display‑Only $1,800, Feature+Display $2,500. These are typical FMCG ranges and dominate the math at shallow depths where margin dilution is small.

5.2Controls & toggles

Every input the calculator exposes, its range, and what it changes.

ControlRangeDefaultWhat it changes
Retailer profileHigh-Low or Everyday Low PriceHigh-Low (passes your full funding to the shelf)Sets the pass-through and the promo vehicles. High-Low runs a weekly flyer and passes your funded cut straight to the shelf. Everyday Low Price runs no flyer (so Feature+Display cannot run there) and banks about a third of every funded cut as its own margin, so the shopper sees a shallower deal than you pay for. The targeted coupon is the one price vehicle that reaches the shopper at face value at either account.
Shopper baseBalanced, Deal seekers, Convenience, Loyal-heavyBalancedWho shops the account. Deal seekers amplify price mechanics and features and lift their incrementality. Convenience shoppers reward visibility and barely respond to price, so a cut mostly subsidises buyers you already had. A loyal-heavy base drags incrementality down on every mechanic because most of the volume is people who were coming anyway.
Promotional objectiveProfit, Brand switching, Pantry loading, Trial, LoyaltyProfitThe scoreboard the tool ranks against. Profit picks the highest net profit. The other four each carry a target and a spend budget, so the winning mechanic changes with the job you are hiring the promotion to do. Loyalty, for example, is won by the targeted coupon on a loyal base, not by the most profitable mechanic.
Funded Discount Depth5% to 40% in 1% steps20% (typical FMCG biscuit promo template)The percentage price reduction you fund on TPR, Feature+Display, and the targeted coupon. Display-Only, BOGO, and Multi-buy ignore the slider. At an everyday-low-price account only part of what you fund reaches the shelf. Feature+Display earns its flyer feature only at 15 percent or deeper, so below that it pays the slot fee and earns no feature.
Structured price pointsBOGO: B1G1 half (25%), B2G1 free (33%), B1G1 free (50%). Multi-buy: 3 for $13.50 to 3 for $9.99BOGO = Buy 1 Get 1 half price. Multi-buy = 3 for $12BOGO and Multi-buy are built as real constructions, not a free dial. Pick the BOGO construction and the Multi-buy basket price, and each carries its own effective depth. The deeper constructions give away a lot: a Buy 1 Get 1 free is a full 50 percent cut and loses money fast on this SKU. The Multi-buy points are threshold-ended ($12.99, $10.99, $9.99) so the basket total does the psychological work.
Chart Metric5 metrics: Net Profit per Event, Uplift Factor, Incrementality, Cost per Incremental Unit, Pantry Loading RiskNet Profit per EventRe-pivots the bar chart to the chosen dimension. The comparison table shows all metrics for all six mechanics at once, so the chart is for visual emphasis on one dimension at a time. Net Profit is the headline, Cost per Incremental Unit is what Finance asks for, and Pantry Loading Risk is how much of the bump comes back out of the following four to six weeks, which scanner data only shows after the event.
5.3Step-by-step exploration

8-step guided exploration of the scenario.

  1. Read the default cell to find the only profitable mechanic

    The tool initialises at the default cell: High‑Low retailer, Balanced base, 20% funded depth, chart on Net Profit per Event. Read the comparison table. Display‑Only: +$6,292. Targeted coupon: -$2,397. Feature+Display: -$2,307. Multi‑buy (3 for $12): -$5,337. TPR: -$8,400. BOGO (Buy 1 Get 1 half price): -$10,138. Display‑Only is the only mechanic earning money here, and the spread between best (Display +$6,292) and worst (BOGO -$10,138) is about $16,400 on the same SKU.

    Expected outcome: Display-Only earns **+$6,292 / 1.4x uplift / 70% incrementality / 20% pantry / $0.64 cost per incremental unit**. Every other mechanic is in the red. **Profitable mechanic count = 1 of 6**. The pattern most FMCG planners under-test is right here in the default: visibility, not a discount, is the only profitable mechanic at this depth, and it wins by a wide margin (+$6,292 against the next-best of -$2,307).
  2. Change the shopper base and watch a price mechanic overtake Display

    Switch the shopper base to Deal seekers and set the funded depth to 15% (the feature gate). Feature+Display now earns +$7,738, ahead of Display‑Only's +$4,587 with this crowd. A supported price mechanic can beat visibility, but only with the right shopper base at the right depth. Push the depth to 25 percent and dilution drags Feature+Display back to about +$354; drop to 14 percent and the flyer feature cuts out under you, because a retailer will not feature a deal that shallow.

    Expected outcome: At Hi-Lo, Deal seekers, 15 percent: Feature+Display **+$7,738** wins, Display-Only **+$4,587** second, and both are profitable (2 of 6 green). The lesson is that the winner is not a property of the mechanic alone. It belongs to the mechanic, the retailer, the shopper base, and the depth together. Read the current context before you judge any mechanic.
  3. Move to an EDLP account and watch the pass-through wedge open

    Switch the retailer to Everyday Low Price and the shopper base to Convenience, then fund a 25% cut. Watch the pass‑through wedge under the slider: you fund 25 percent but shoppers see only about 16 percent, because this account banks the rest as margin. TPR now loses about $13,319 while Display‑Only earns about +$11,824. Feature+Display drops out entirely (no weekly flyer to feature). The one price vehicle that keeps its full value is the targeted coupon, because it reaches the shopper at face value and the retailer banks none of it.

    Expected outcome: At EDLP, Convenience, 25 percent: Display-Only **+$11,824** dominates, every shelf-price mechanic leaks part of the funded cut to retailer margin, and the coupon's retailer keep is **$0**. The same price move that could win at a high-low account torches money here. When funded and shelf depth differ, name the wedge in plain words: you fund one number, the shopper sees a smaller one, and the retailer banks the difference.
  4. Work the structured price points for BOGO and Multi-buy

    Back at the default cell, use the BOGO construction and Multi‑buy price point pickers. These two mechanics do not follow the slider, they hold the depth of the construction you pick. Step the BOGO picker: Buy 1 Get 1 half price (about 25% off) loses $10,138, Buy 2 Get 1 free (about 33%) loses $24,668, and Buy 1 Get 1 free (a full 50%) loses $72,498. Step the Multi‑buy picker: 3 for $13.50 (about 10% off) loses $1,558, and it deepens to 3 for $9.99 (about 33%) losing $20,076.

    Expected outcome: A deeper give-away almost never pays for itself on a 57.9 percent gross-margin SKU. The shallowest Multi-buy (3 for $13.50) is the least-bad price construction at the default cell, and the deepest BOGO is the single worst move on the board. The Multi-buy price points are threshold-ended ($12.99, $10.99, $9.99) so the basket total lands just under a round number, which is where the perceived value lives.
  5. Push the slider to 30% and watch the depth-driven mechanics crater

    Set the shopper base back to Balanced and drag the funded depth to 30%. TPR craters to -$23,663 with pantry risk at 67%, Feature+Display to -$16,672, and the targeted coupon slips to -$5,190. Display‑Only stays at +$6,292 because it has no price cut to scale, and BOGO and Multi‑buy hold their structural -$10,138 and -$5,337 because the slider does not touch them. This is the value‑destruction zone for every depth‑driven mechanic.

    Expected outcome: At 30 percent, only TPR, Feature+Display, and the coupon deepen, and all three are deep in the red. The guardrail every trade planner should know: deep funded cuts on a high-margin SKU never recover the margin they give away, even when the headline uplift looks healthy. Profitable mechanic count stays 1 of 6.
  6. Change the objective to Loyalty and let the coupon win

    Set the shopper base to Loyal‑heavy and change the objective from Profit to Loyalty. The scoreboard changes. The targeted coupon becomes the objective winner: it deepens usage in the base you already own without training the whole store to wait for a deal, so it clears the loyalty target while staying under the pantry cap. Display‑Only is still the most profitable mechanic (about +$3,749), but it is not the loyalty winner. The objective decides which number counts.

    Expected outcome: On a loyal-heavy base with the Loyalty objective, the coupon wins the objective (net about -$2,432, a deliberate, budgeted spend to deepen usage), while Display-Only wins raw profit. This is the core of mechanic selection: the same context can crown two different mechanics depending on what you are trying to do. Read the objective first, then judge the winner by that objective, not by profit.
  7. Switch to Cost per Incremental Unit and rank the six

    Reset to the default cell and click Cost per Incremental Unit in the metric selector. The bar chart re‑pivots. Display‑Only $0.64, Feature+Display $2.16, targeted coupon $2.81, BOGO $2.96, Multi‑buy $3.12, TPR $3.99. Compare each against the margin that incremental unit actually earns, which is not the same line for every mechanic. Display‑Only never cuts price, so it keeps the full $2.89 and its $0.64 is comfortably clear. Every price mechanic earns less: at 20 percent funded depth the promoted unit earns about $1.89, so Feature+Display ($2.16) and the coupon ($2.81) are already above their own line, and TPR ($3.99) is far above it.

    Expected outcome: Cost per incremental unit at the default cell: Display $0.64, Feature+Display $2.16, coupon $2.81, BOGO $2.96, Multi-buy $3.12, TPR $3.99. Only Display-Only clears its own margin line, and it clears it by a distance, because it keeps the full $2.89. Every price mechanic sits above the roughly $1.89 its promoted unit earns, which is exactly why five of the six lose money here. The mechanic that wins on volume (Feature+Display at 2.5x) is only mid-pack on cost efficiency.
  8. Land the JBP recommendation

    Pin Display‑Only as the default template (+$6,292 per event, immune to depth). Carry two alternates matched to context. For a deal‑seeker account with a flyer, Feature+Display at the 15 percent feature gate earns +$7,738 and gives the retailer a visible price story. For a loyalty or targeting objective, the targeted coupon is the tool, because it holds its full value at any account and does not pantry‑load the base. Build the recommendation around the context and the objective, not mechanic preference.

    Expected outcome: Recommendation: 'At this account, Display-Only earns +$6,292 per event and is the only profitable mechanic at the proposed 20 percent depth. Feature+Display at the 15 percent feature gate is the alternative where the shopper base is deal-led and the retailer runs a flyer. The targeted app coupon is the tool for a loyalty objective. Avoid TPR and deep BOGO at the proposed depth.' Annualised across 8 SKUs at 6 events each, switching a TPR-default calendar to a context-matched, Display-led one is worth roughly **+$700K** of incremental gross profit at this baseline.
5.4Reading the output

Every KPI, the formula behind it, and how to interpret a positive or negative value.

KPIFormulaHow to read it
Net Profit per EventIncremental Margin minus Margin Dilution minus Fixed Cost per EventThe number Finance cares about. Negative means the mechanic destroyed gross profit on this SKU, positive means it created it. Display-Only's +$6,292 default profit is roughly 3.5 times its $1,800 fixed placement cost, the highest absolute and relative return of any mechanic at the default cell. Read this before any other column, but read it against the current retailer and shopper base, because both move it.
Uplift FactorVolume during promo / Baseline volumeHeadline volume number sales teams gravitate to. High uplift without high incrementality usually signals forward-buying, not real new demand. TPR's 2.0x uplift at default sounds healthy, but only 40 percent is incremental, so most of the extra volume is subsidised loyal buyers who would have purchased at full price.
IncrementalityIncremental units / Uplift volume x 100, where uplift volume = total promo volume minus baseline volumeShare of the uplift that is genuinely new demand. The course works to a 50 percent floor: below it you are mostly subsidising buyers who would have bought anyway, above it the event is genuinely expanding demand. The targeted coupon's 75 percent is the highest because it reaches likely responders, Display-Only's 70 percent is next because paid placement self-selects new-category shoppers, and TPR's 40 percent is the lowest because the price cut is visible to loyalists first.
Cost per Incremental UnitTotal promo cost / Incremental unitsTrade efficiency view Finance cares about. Compare it against the margin the incremental unit actually earns at its promoted price, not the full-price margin. Display-Only keeps the whole $2.89 because it never cuts price, which is why its $0.64 is so comfortably clear. Every price mechanic earns less: at 20 percent funded depth the unit earns about $1.89, so Feature + Display at $2.16 and the coupon at $2.81 are both above their own line, and both lose money at the default. TPR's $3.99 is not close.
Pantry Loading RiskMechanic-specific base risk plus (effective shelf discount minus 20) times pantry sensitivity, clamped 5% to 90%Qualitative indicator of how much post-promo volume dip to expect. High-pantry mechanics (TPR and BOGO) steal volume from the next 4 to 6 weeks. Low-pantry mechanics (the targeted coupon and Display-Only) do not, because they buy real new demand rather than forward purchases. Cross-check against the Promo ROI Calculator's Post-Promo Dip slider when sizing the full P&L impact.

Read the comparison table as a stack of five trade‑offs across six mechanics. Net Profit answers 'did this mechanic make money?'. Uplift answers 'how much volume did it move?'. Incrementality answers 'how much of that was real new demand?'. Cost per Incremental Unit answers 'how efficiently did it convert spend to incremental sales?'. Pantry Risk answers 'will the next 4 to 6 weeks claw it back?'.

The Display‑Only row is depth‑independent, so it never moves as you drag the slider. TPR, Feature+Display, and the coupon move with the slider, while BOGO and Multi‑buy move only when you change their construction. Above all, the winner moves with the retailer, the shopper base, and the objective, so the only question worth asking is 'at this account, with this crowd, chasing this objective, which mechanic wins?'. Cross‑reference with the Promo ROI Calculator (TPO Lesson 1) for the full P&L impact including the post‑promo dip. This tool sits upstream and answers 'which mechanic should I run?' before you ask 'will this mechanic, depth, and uplift clear the Performance Grid?'.

5.55 common mistakes to avoid

Diagnostic patterns that catch most misuse of this calculator in practice.

  1. Mistake 1Picking the mechanic with the highest uplift
    Symptom: The trade plan defaulted to Feature+Display because it delivered the highest 2.5x uplift on the proposed slot. At the default cell the post-event analysis showed -$2,307 net profit, because the fixed $2,500 placement fee plus margin dilution at 20 percent depth turned the event red. Feature+Display only earns its keep with a deal-seeker crowd at the feature gate, where it makes +$7,738.
    Fix: **Compare Net Profit, not Uplift, and read the context.** Uplift is the headline volume sales teams gravitate to, but it answers a question Finance does not ask. Net Profit (incremental margin minus dilution minus fixed cost) is the only number that decides whether the trade dollar earned a return, and the winner changes with the retailer and the shopper base. Use the comparison table, not the bar chart, and set the context you are actually planning.
  2. Mistake 2Defaulting to TPR because it has no fixed cost
    Symptom: The Sales team picked TPR because it carries zero fixed mechanic fee and the 20 percent depth felt normal versus the retailer's last calendar. The math at the default cell showed -$8,400 net profit per event, because incrementality was 40 percent and pantry risk 55 percent, so most of the uplift was loyalists loading their shelves at a discount.
    Fix: **TPR is the lowest-fixed-cost mechanic but the highest variable-cost mechanic.** Margin dilution scales with depth times subsidised volume, and a typical FMCG TPR pays out far more on subsidised loyalists than on incremental sales. The 'no fixed fee' framing hides the much larger variable margin give-away. Always compare Net Profit, not just out-of-pocket fees.
  3. Mistake 3Ignoring Display-Only because it has no discount story for the retailer
    Symptom: The retailer pushed back on a Display-Only proposal because their shopper-marketing template requires a visible price reduction. The team ran a 20 percent TPR instead. The post-event scorecard showed Display would have earned +$6,292 per event, the TPR earned -$8,400. The retailer accepted the same Display-Only template the next quarter when the bridge math was shown.
    Fix: **Display-Only is depth-independent, which is its commercial advantage.** Most retailers default to price-cut templates because their merchandising slots are price-led. Bring this tool's comparison table to the JBP, show the Net Profit row for all six mechanics at the proposed depth, and walk the retailer through the math. If the retailer needs a visible price story, offer the targeted coupon, which keeps its full value at their shelf while Display carries the profit.
  4. Mistake 4Trusting headline uplift on TPR without measuring incrementality
    Symptom: The retailer scorecard reported a 2.0x uplift on the Q2 TPR. Sales celebrated. Six months later, the post-event analysis with proper incrementality controls showed actual incrementality was 28 percent, not the assumed 50 percent, and the event destroyed roughly $14K of profit per slot.
    Fix: **Volume uplift is not profit success.** TPR incrementality drops as depth rises (50.5% at 5 percent, 40% at 20 percent, 33% at 30 percent, 26% at 40 percent in this model). Without measuring incrementality directly, every TPR analysis is a guess. Cross-reference with the **Promo Baseline Estimator** tool (TPO Lesson 3) for the upstream baseline-and-incrementality measurement. This tool sits downstream and consumes the incrementality input.
  5. Mistake 5Reading the default cell as the answer for every account
    Symptom: The deck concluded 'Display-Only always wins' from the default cell and applied it to every retailer. At a high-low account with a deal-seeker base, Feature+Display at the feature gate actually earned +$7,738 against Display's +$4,587, and the loyalty objective on a loyal-heavy base was won by the targeted coupon, not Display. The blanket rule under-earned at both accounts: it left $3,151 per event unclaimed at the deal-seeker account and missed the loyalty objective entirely at the loyal-heavy one.
    Fix: **Read the retailer, the shopper base, and the objective before you crown a mechanic.** The default cell is one context, not a universal answer. Change the retailer profile, the shopper base, and the objective to the account you are actually planning, then read the winner. The tool exists because the winning mechanic changes with the account, and re-reading it per account is worth thousands of dollars an event on a single SKU.
Related concepts

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This calculator is the sandbox slice of Lesson 5: Promotion Mechanic Selection. Each of the other 7 Trade Promotion Optimization lessons teaches a complementary concept that sharpens how you read the output above.

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