1 trade promotion in a volatile economy may 26, 2010
TRANSCRIPT
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Trade Promotion in a Volatile Economy
May 26, 2010
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Contents
1. Current Trade Promotion Landscape
2. Best Practices for Trade Promotion Management
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Trade Promotion Landscape and Best Practices
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Context for TPM Landscape
Perficient recently conducted a survey that canvassed over 60 CPG companies
This survey focused on three key elements:1. What new TPM issues companies are facing due to a volatile economy 2. How companies are dealing with these new challenges3. How the current economy is driving TPM investment decisions
In addition to this recent survey, Perficient has been working closely with customers to find value in a volatile economy
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Trade Promotion Landscape: Increased Scrutiny on Trade
64%
15%12%
5%
Current Economic Environment's Impact on TPM Program and Tools
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Trade Promotion Landscape: Investment Rational
If you are continuing to invest in TPM solutions, which answer best describes your reason?
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Trade Promotion Landscape:New Business Challenges
What new business problem that has surfaced as a result of the current economic environment are you looking to solve with your current TPM solution?
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Trade Promotion Landscape:New Priorities and Capabilities
What TPM capabilities do you believe take on additional value during a difficult economic period?
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Trade Promotion Landscape: Impact on Trade Spend
32%
25%
20%18%
5%
What will happen to your overall trade spend as a result of the current economic conditions?
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Trade Promotion Best Practices: Customer Profitability
CPG Companies continue to build and enhance their capabilities for driving go-to-market guidelines and profitability targets down to the field
Integrated analytics to support:– Profitability Analysis– Scenario Planning
Automated workflow to help foster compliance and control
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Trade Promotion Best Practices:Price Optimization
Successful companies are seeking to leverage flexible pricing strategies based on the latest market conditions
– Aspiring to be less re-active as it relates to pricing strategies
Capturing retail pricing data is paramount
Pricing optimization models are not just the domain of statisticians anymore
Better tools available for price modeling and what if scenarios
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Sales Forecasting and Consensus Driven Planning
Historical Demand Planning Relationships
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Sales Forecasting and Consensus Driven Planning
Industry Trend: Consensus Amongst Stakeholders and Active Participation of Sales
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Trade Promotion Best Practices: Sales Forecasting and Consensus Driven Planning
Better data available to drive collaborative planning and consensus forecasting processes
Improved technology offerings can reduce time associated with consensus driven forecasting processes
Boardroom support for improving forecasting and demand planning has increased from 50% five years ago to 65% today2
2 Institute of Business Forecasting and Planning, Anish Jain
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Questions?
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Thank You.