No Need To Change Existing Systems,
Service Providers, Or Institutions
Trade Promotion Management
Global Customer Insights In Real-Time
Trade Promotion Management
Feature Overview
How The Trade Promotion Management Feature
Can Bring Value To Your Global Organization
The INSTANT® Trade Promotion Management solution offers comprehensive tools for effectively planning, executing, and analyzing trade promotions. By quantifying the benefits of each feature, this module can significantly contribute to optimizing promotional strategies, improving ROI, and enhancing operational efficiency. Implementing these capabilities, a company can navigate the complexities of trade promotion management with greater confidence and success, leading to better financial outcomes.
Promotion Planning and Forecasting
Feature Description: This feature enables a company to plan and forecast the outcomes of trade promotions using historical data and predictive analytics. It helps in setting realistic objectives and budgets for promotional campaigns.
Benefit and Savings: Effective promotion planning and forecasting can improve the ROI of promotional activities by approximately 20%. By aligning promotional spending with expected outcomes, a company can allocate budgets more efficiently, reducing wasteful expenditure and ensuring that funds are directed towards the most impactful promotions.
Targeted Promotion Execution
Feature Description: Allows for the execution of targeted promotions based on customer insights and segmentation. This capability ensures that promotions are directed at the right audience at the right time through the most effective channels.
Benefit and Savings: Targeting promotions can increase conversion rates by 15-25% by reaching customers more likely to respond positively. This precision in execution reduces the cost-per-acquisition by up to 20%, maximizing the efficiency of promotional spending.
Real-Time Promotion Monitoring
Feature Description: Provides the ability to monitor the performance of trade promotions in real-time, enabling quick adjustments to maximize effectiveness and ROI.
Benefit and Savings: Real-time monitoring can enhance the overall success rate of promotions by allowing for agile responses to market dynamics, potentially increasing promotional ROI by an additional 10%. This agility ensures that resources are not wasted on underperforming promotions.
Post-Promotion Analysis and Optimization
Feature Description: After the completion of promotions, this feature facilitates in-depth analysis to determine their effectiveness and ROI. Insights gained are used to optimize future promotions.
Benefit and Savings: Post-promotion analysis can improve future promotion effectiveness by an estimated 20%, by identifying successful elements that can be replicated and areas that require improvement. This continuous optimization cycle ensures that promotional spending becomes increasingly efficient over time.
Integration with Inventory Management
Feature Description: Seamlessly integrates trade promotion management with inventory systems to ensure product availability aligns with promotional activities, preventing stockouts or excess inventory.
Benefit and Savings: The integration with inventory management can reduce stockouts and overstock costs by up to 15%, ensuring that promotions do not lead to lost sales due to inventory issues or unnecessary capital tied up in excess stock.
Compliance and Profitability Analysis
Feature Description: Ensures that all promotions comply with legal and internal guidelines and evaluates the profitability of promotional activities to ensure they meet or exceed financial objectives.
Benefit and Savings: Compliance and profitability analysis can prevent potential fines and ensure that each promotion contributes positively to the bottom line, potentially improving the net profitability of promotions by 10% on average.
Trade Promotion Management
Data-Driven Decision-Making
Data-Driven Decision-Making
Trade promotion management (TPM) and trade promotion optimization (TPO) refer to processes and technologies that are necessary for planning, managing, and executing marketing plans. These efforts utilize correlation data from third-party sources involved with customer activity.
For example, TPM strategies are widely used among consumer-packaged goods (CPG) companies to answer the following types of questions:
- What kinds of promotions achieve the highest return on investment (ROI)?
- How much money did we spend on which specific sales drivers?
- Which of our marketing efforts are the most effective?
- What alternative scenario(s) for future promotional efforts should yield the highest profits and ROI?
- How can we connect internal sales data with point of sale (POS) activity?
- What are the effects of particular promotions across our brand portfolio(s)?
- How do these promotional efforts impact our customers and competitors?
INSTANT – Without Precedent
INSTANT’s ability to provide holistic, integrated customer insights and business intelligence is revolutionary. So too is its ability to present granular, real-time data to help you manage your business more proactively.
INSTANT Analytics
Real-time analytics can provide you with proactive ways to improve your marketing performance, reduce costs and increase profitability. With access to real-time data about all aspects of your business, you can now apply dynamic intelligence to end-to-end processes such as manufacturing, inventory management, supply chain logistics, and end-user marketing/delivery. In today’s “on-demand” and “always-on” environment, companies with this distinct capability will have a leg up on their competition.
INSTANT is uniquely positioned to provide real-time data aggregation, analysis, and presentation (visualization).
- This means you can now make decisions at the speed of information – i.e., as quickly as business unfolds – across your entire global footprint.
TPM Visualized
This diagram provides an overview of a typical Trade Promotion Management (TPM) process, including its key components and benefits:
Key Steps in TPM
To answer these questions, you can engage with your retail partners to systematically collect and analyze relevant data. This information can then be used to determine which next steps are most likely to accomplish your strategic objectives. This process includes several stages, such as:
- Market data collection: aggregating information from multiple sources into a single platform
- Predictive modeling: distilling historical performance into key sales drivers in order to determine the incremental benefit from each trade promotional activity
- Budget planning: creating “what if” scenarios for use by Sales & Marketing teams to optimize trade promotional activity for the highest ROI
- Retail execution: working collaboratively with retailers for seamless execution
- Post-event analysis: identifying key performance indicators (KPIs) to measure a promotional activity’s impacts with various metrics, such as incremental volume and profit; cannibalization rate; inventory optimization; etc.
- Promotion optimization: analyzing relevant data for actionable insights to drive future promotional activity with the highest ROI and the least disruption
The INSTANT Advantage in TPM
INSTANT’s unique ability to collect, analyze, and provide accurate, real-time data – at a transactional level – greatly facilitates and accelerates successful TPM collaboration. This unprecedented ability to access on-demand, dynamic data (based on POS activity) takes TPM awareness to a new level, enabling proactive, responsive decision-making.
By providing a new source of consumer insights based on financial excellence and strategic IT capabilities, INSTANT yields unprecedented new capabilities. For example, with INSTANT, you immediately have the ability to:
- Deliver hyper-personalized marketing initiatives to end customers based on their individual preferences, interests, and actual purchasing behavior
- Develop an agile, responsive, and proactive supply chain that can dynamically anticipate (and satisfy) demand with minimal capital required.
- Establish a complete set of offerings for all customers, with a corresponding set of holistic go-to-market strategies that maximize your ROI
- Leverage data and insights from across your enterprise to drive increased customer satisfaction, volume, and profit.
