Trade Promotion Management and Trade Promotion Optimization

The Future of Trade Promotion Management

Trade Promotion spending represents the second largest cost to your business, after cost of goods.  Considering trade spend also accounts for more than 60% of most CPG company’s marketing budget, the following statistics are astounding:

• Just 61% of Trade Promotions generate incremental volume
• Trade Promotions raise out of stock incidents by 2-3%
• Just 62% are fully implemented at all locations
• 16% of Trade Promotions are unprofitable
• 30% of Trade funding goes to the retailer’s bottom line

(Source: Trade Promotions Association of America 2010)

At Promax, we appreciate that many CPG companies struggle with vast arrays of spreadsheets to plan, implement, execute and manage their trade promotions, accruals and payments.

The Promax PX solution however captures all this data within one integrated tool designed to allow a seamless, automated process to Track, Predict and Optimize promotions and trade spend.  Promax PX also offers Volume Planning capabilities which transform activity based forecasting, statistical modelling and market intelligence into an automated analytical approach.

The Promax approach to Promotion Management starts with the business goals a company sets out to achieve to build shareholder value. It lets management build a plan to realise those goals by controlling a range of sophisticated parameters such as: targets for revenue, volume, trade spend, margin or profit; account differences at national, state and store levels; or customer trading terms for net-net calculations. It ensures that the desired business objectives automatically shape the planning phase to deliver the outcomes you want.

The Future of Trade Promotions Optimization

Given the cost of trade spend, analyzing and understanding what worked, what didn’t and why, is crucial.

The availability of current information is the key, and in many cases, today’s figures are yesterday’s news. The future is where it’s at.

And that’s precisely where Promax Trade Promotions Optimization Solutions will take you.

With Promax you will have the ability to quickly and accurately TRACK your sales and promotional funds, use sophisticated multi-causal models to confidently PREDICT consumer response to promotions, and streamline the entire promotions lifecycle to OPTIMIZE the price, volume and profit across your entire customer landscape.

It’s the solution of choice for world-leading consumer goods companies. See what it can do to streamline your trade promotions process and improve your bottom line.

For more information on Trade Promotions Optimization contact our team at Promax.

OPTIMIZE

The OPTIMIZE module is the ultimate in closing the loop on the business solution. It incorporates the following capabilities;

Strategic Optimization

The ability to analyse past scan data and model the price elasticity and profit profiles of each account/product combination. Optimise pricing to maximise profit and change the promotion strategy to drive the financial outcome toward a business objective.

Develop multiple scenarios and ultimately record price and promotional frequency policy within the database for use on creating a time phased constrained strategy.

Strategy Planner

A high level time-phased slotting board for modelling multiple scenarios that can potentially be used as the basis of promotion planning and execution as well as budget development.

Goals, Targets, Quotas and Budgets
(currently Budget Strategy, Management & Distribution)

Create, analyse adjust and optimize a range of historical or forecast data sources to devise records for comparison against actual and forecast for volume revenue and spend in a given time window. Populates budgets/targets/goals on multiple key metrics throughout Promax PX as the core sales planning and execution tool in the organisation.

 Print This Page