Trade Promotion Analysis remains problematic in many consumer goods companies, regardless of their size, process maturity, or market segment. Traditionally, the industry has reviewed trade spend according to a “lift planning” process in which baseline volume commitments are forecast at the planning phase and sales history is reviewed at the end of a calendar period to identify sales lift.
This approach forms a starting point in the journey many companies take to improve the accuracy and sophistication of trade promotion analysis techniques. More advanced approaches include incorporation of comparative syndicated marketing data services from providers such as Nielsen or IRI, as well as improved cost modeling to more accurately understand the Return on Trade Investment (ROTI) for each individual promotion based on variable contribution margin.
Our approach is to work with customers to meet their current analysis goals and provide a flexible basis for improving post-promotion analysis and development of new key performance indicators over time, which includes all possible influences, such as overlapping promotions and incentive programs
- Understand how past promotions performed in terms of volume, profitability, and other goals
- Integrated Reporting across multiple data sources and time series of data
- Exception Management using rule-based workflow
- Multi-Dimensional Analysis across customer channel, product family, and time periods
- Variable and Activity-Based Cost modeling based on different measurements and allocations such as returns, logistics, handling, packaging, value-added services, promotional fees and allowances
- Client-Defined Data Measures for a customer segment, product line or operational metric
- Client-Defined Templates/Reports
- Mapping syndicated marketing data sources into an integrated view
- Mapping data elements across multiple data sources
- Maintenance of multiple hierarchies to support different customer-specific point-of-sales (POS) and channel models
- “What-if” scenario comparisons based on different mix allocations and promotion strategies
- Increase sales volume under promotion up to 20%
- Increase total net contribution margin 2% to 5%
- Reduce promotion review cycle time by 30% to 60%
- Reduce promotion mix variance across channel segments and contracts by 10% – 20%
What Our Clients Say
Our past process was reactive, tedious, disconnected. Now it is based on projections, with real accruals connected to the general ledger. We can see the volume increase. We can see better profitability. Our sales people can see it.
Bruce Amero - Customer Finance Director, Gorton’s Seafoods