Build an interactive business tool called The Business Offer Cannibalization Observatory that determines whether a promotion creates genuinely incremental profit or merely shifts purchases from full-price products to discounted bundles.
Allow users to enter product prices, unit costs, historical sales, promotion dates, discount amounts, bundle composition, and estimated customer traffic.
The application should:
Calculate contribution margin before, during, and after a promotion.
Compare promoted-product sales with changes in related products.
Estimate incremental units and profit using a user-selected baseline.
Model customers switching from full-price purchases to discounted offers.
Compare alternative discounts, bundle combinations, and minimum-spend thresholds.
Show best-case, expected-case, and worst-case outcomes.
Highlight missing data that weakens the analysis.
Export a promotion evaluation report with transparent formulas.
Include realistic sample scenarios for a café, an online store, and a neighborhood retailer. Clearly distinguish observed results from estimates, and never claim that a promotion caused a sales increase without an appropriate comparison method. Build an interactive dashboard with adjustable assumptions and live recalculation.
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