Data-Driven Trade Promotion Optimization for Revenue Management in the Footwear Industry: A Case Study of Adidas and WestGear

This paper presents a comprehensive study on optimizing trade promotions in the footwear industry, focusing on the partnership between Adidas, a renowned manufacturer, and GearWest, a leading retailer. The research explores the application of data-driven decision-making techniques, machine learning, and revenue management to design effective trade promotions. Utilizing a dataset spanning a two-year period and employing various ML algorithms, we predict demand and assess the performance of different pricing strategies. The proposed model achieves a substantial increase in revenues compared to traditional off-invoice discounts. Additionally, we discuss the implications of our findings and highlight future research targets.