Fuzzy Logic Based Decision Making of Promoting Activity in Cosmetic Company

The problem of planning promotions in retail chains is the most important for the FMCG-business which manufactures hair, body and face care products. According to the research of the consulting company "Nielsen" (2017), it is difficult to avoid the increase of promotional activities, as they are growing. The main problem is that most promotions are not profitable for companies. In order to solve this problem, Nielsen suggests to solve three main sub-problems: 1) determine the set of products to be sold during a promo period; 2) forecast the volume of sales; 3) determine the price strategy. The purpose of this research is to increase the effectiveness of decisions about promotions in retail chains. The object of the research is the process of making decisions to conduct promotions. The subject of the research is the information-analytical system based on fuzzy logic algorithms. The research tasks are: 1) define and approve the process of conducting promotions; 2) define requirements for the solution to conduct promotional activities; 3) choose the solution to conduct promotional activities; 4) develop a data warehouse, an ETL-process and an OLAP-cube for analytical support of users; 5) develop an online report for monitoring sales and the profitability of promotions; 6) develop a fuzzy logic model to plan the discount; 7) develop additional models for defining the inputs in order to determine the discount.