Challenges

Monitoring the effectiveness of trade promotions 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 forecasted 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 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.

Features

• 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 with rule-based workflow for
• 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
• User-Defined Data Measures specific to a customer segment, product line or operational metric
• User-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

Benefits

• 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%

Next Steps

To find out how Flintfox Trade Promotion Management can meet your specific needs, contact us. We welcome the opportunity to discuss your situation.