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.