An integral part of Promax is the ability to model the effect of promotional mechanics e.g. price, shelf-position, marketing spend on the forecasted uplift in sales volume. Full information on how this is done and the options around it are covered in the Promax white paper :  Modelling Multi-Causal Data in Promax PX

Choosing between Promax® and SAP® CRM

This paper talks to the issues that are commonly raised in those businesses that have SAP as the core business system and addresses many of the key points that influence a decision to use the functionality of Promax PX versus an alternative of SAP CRM.

Trade promotion management is undergoing profound change and CPG manufacturers are looking for;

• a robust analytical foundation,
• integrated with transactional functionality,
• to design more profitable promotions and
• execute these promotions more intelligently with retail trading partners.

Promax PX Software

Promax PX is a specialist trade promotions planning and optimisation software application. It has been developed over 20 years through the interaction with a broad spectrum of companies in the Consumer Packaged Goods (CPG) sector and incorporates the requirements and learning of these companies for a comprehensive TPM solution.

Promax is most commonly implemented as a “best of breed” solution in conjunction with enterprise systems. Promax customers using SAP as their enterprise system represent the most common combination. Promax has extensive experience in configuring integration with SAP.

Promax PX is not a CRM package. The only commonality between CRM and Promax PX is the need to have customers and products, beyond this the fundamental design of the system is totally different.

Promax PX focuses on the need to TRACK, PREDICT and OPTIMISE the processes around deals offered by CPG companies when planning, negotiating and implementing trade promotions.

Read more about “Choosing between Promax and SAP CRM” by downloading the complete whitepaper

Product Inter-Relationships - Cannibalisation

OVERVIEW

This paper describes the methodology used by Promax to determine the reaction of baseline sales of one product caused by the promotion of other products and how the technology can aid the planner in developing a clearer understanding of the overall promotional plan. We deal with the concepts of historical analysis of promotion activity and the segmentation of the consumer response when there is no promotion (normal sales or baseline) and the lift in sales from the promotion.

Symptoms

Predicting what the effect will be of a promotion is a complex and involved task as there are many causal effects that need to be taken into consideration. An account manager who analyses the historical retail scan data will commonly observe that the promotion of one product can cause an effect on the baseline sales of another. A typical example is changing from the standard pack to a promoted pack when both packs remain on sale. The introduction of the promoted pack, which may contain 10% extra product, will inevitably cannibalise the base rate of sales of the standard pack. The extent to which this cannibalisation occurs is difficult to measure without sophisticated statistical analysis integrated into the promotion planning environment. Yet it is vital information for the account manager and should be easily interpreted at the time of planning the promotion.

Let’s look at the problem. We’ll use the familiar sample of baked beans to illustrate this effect. In our example, the standard pack of baked beans is a 375g can and its normal rate of sale through our sample retailer is 400 cases per week. Periodically we promote a 450g can for the same price as our 375g SKU. When we do this the sales of the 450g SKU is increased by 200% above the normal level and the 375g SKU’s sales dropped to 50% of the normal sales. If the normal retail price of the 375g unit uses $0.89 and the normal retail price for the 450g is $0.99, were we better off by promoting our 450g unit at $0.89 or should we choose another strategy?

Read more about “Product Inter-relationships – Cannibalisation” by downloading the complete whitepaper

Interfacing Promax PX with MOVEX (M3)

OVERVIEW

The Promax solution has been implemented to a variety of ERP solutions such as SAP, JDE, BPCS, MFPRo and Movex to name a few.

This document examines the interfacing to Movex M3. It should be noted that the information provided is relevant to other versions of Movex.

Fundemental to the implementation of Promax PX is establishing communication of essential data between its database and that of the other systems in the business environment. The efficient transfer of “back office” data makes the Promax PX a seamless part of the whole M3 business system. Developed within the Microsoft development environment, Promax PX relies upon the technology of Microsoft Windows, Microsoft Office programs and Microsoft SQL Server 2005. Master file data on products, customers, general ledger, trading terms and pricing can be exchanged between Promax PX and M3 using a range of industry standard document formats as well as simple text file transfers. Promax PX has the ability to import and export data using but not limited to stored procedures, XML, FTP & Flat file transfer.

FLEXIBLE INTERFACE CONFIGURATION

Promax PX Interfacing is flexible and user friendly. The Promax PX data interface is controlled using a component called Timed Transfers. The Timed Transfers system uses a time and/or event based excecution method to exchange data located in specified sources within M3 or any other repository. Typically syndicated data sources like ACNeilsen, IRI or Synovate data are required for Promax PX modelling purposes.

Read more about “Interfacing Promax PX with Movex (M3)” by downloading the complete whitepaper