Background

Our client wants to review its print-run decisions procedures, since there is no formal procedure to take decisions and lacks coordination between Marketing and Distribution. In addition to this, there is no model to measure relationships between print-run levels, lost-sales and their economic impact.

Valoris role

Based on POS historical data of three magazines:

Calculate return level-vs-sold-out correlation curves and estimate lost-sales for different sold-out and print-run levels.

Develop a sensitivity analysis of economic margin-vs-print-run level and define the economically optimum print-run.

Results

Savings of €500.000 / year.

For more information about Valoris and its Media practice, please contact us.