Trade promotion management and optimisation

Implement an end-to-end TPM process and optimise promotion revenue, volume, and profitability

Understand the Drivers of Promotion Performance

  • Drillable dashboards to identify trends and uncover root causes of low and high promotional performance
  • Automatic identification of poorly performing customer and product combinations and specific promotional events to prompt timely actions
  • Complete visibility over customer, product and promotional P&L and the impact of trade spend on sales margins
  • Key metrics under control: promotional uplift, margin, ROI, forward buys, cannibalization

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Run a Collaborative Planning Process

  • Top-down and bottom-up planning capabilities to run the definition and revision of sales plans throughout the year
  • Forecasting algorithms that take both transactional and market data into account as well as industry segment specificities, such as seasonality, product shelf-life, and promotional intensity
  • Integrated planning of sales volumes: promoted and non-promoted or base and incremental sales volume forecasts
  • Complete customer plans around key sales levers: assortments, pricing, promotional allowances, and different type of trade incentives

Keep Trade Spend Under Control

  • Commercial fact-based negotiations via customer and promotional P&L analytics
  • Comprehensive capabilities to manage the full contract life-cycle
  • Complete trade terms management: conditioned or not conditioned to sales targets; on-invoice and off-invoice; year-end-bonuses, promotional allowances, deferred discounts
  • Automated year-end cost projections and timely information over planned vs actual trade funds
  • Easy documents reconciliation system to streamline deductions management processes and reduce undue claims
  • Integration with back-office systems to ensure timely accounting of trade spend, and error-free invoicing and ordering processing

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Define Optimal Promotional Programs to Maximize Revenue, Volume and Profitability

  • Complete capabilities to define retailer specific promotional programs and address different market and shopper opportunities
  • Advanced capabilities to simulate promotional events and to run different promotional plan scenarios
  • Comprehensive view of the promotional calendar together with other planned marketing and brand initiatives
  • Flexible management of different promotion mechanics and – TPR, BOGO, in-store promotions – and visibility over each single promotional initiative details: timing, products, mechanics, and estimated results

Effectively Drive Promotion Execution Through an Integrated System

  • Capabilities to push out field activities and alerts based on promotional events details and standard KPI’s
  • Ready-to-use scorecards to measure and share promotion execution results in a standard and comparable way throughout different outlets and geographies
  • Real-time assessment of the impact of retail non-compliance on sales results to support corrective actions both at the headquarter and in the field

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Full description

Trade Promotion Management and Optimization

XTEL Trade Promotion Management and Optimization solution helps your organization to effectively manage a closed-loop process: from planning to execution, from analysis to optimization.

Highly Configurable and User-Centered

  • Use process-guided navigation to allocate trade funds on the most effective promotional initiatives.
  • Set up promotional tactics – TPR, BOGO, in-store promotions – in line with promotional guidelines.
  • Use workflow, alerting and control tools, all based on configurable parameters, to make the  whole TPM process faster, simpler and better controlled.
  • Draw on role-based dashboards to follow industry-specific KPI’s and apply intuitive analytic procedures to understand product, customer and trade promotion results.

Improved Visibility and Faster Time-to-Act

  • Create and maintain clear guidelines for both national and local promotional events.
  • Get a comprehensive view of the promotional calendar together with other planned marketing and brand initiatives.
  • Improve time-to-act by using alerting systems that enable different users to intervene in a timely and targeted manner at different phases of the promotional process.
  • Easily access actual product, customer and trade promotion results through built-in reports, dashboards and KPI’s.
  • Drive commercial fact-based decisions via customer and promotional P&L analytics.

Trade Promotion Volumes Forecasting

  • Predict baseline and incremental volumes by leveraging both transactional and market data.
  • Make uplift projections using indexes calculated for specific product and/or client groups and that take into account industry segment specifics such as seasonality, product shelf-life, and promotional intensity.

State-Of-The-Art Analytics, Modeling And Optimization

  • Leverage both transactional and market data – syndicated, ePOS data – to measure and predict promotional outcomes.
  • Run post-promotion analysis and understand the elements behind promotional results: baseline, uplift, cannibalization, forward buying.
  • Dig into data – from an aggregated to a detailed view – and focus on factors that determine greater (or lower) performance
  • Draw on historical data to identify similar past promotional events and their related results based on parameters such as: products, discounts, participating retail stores, and promotional tactics.
  • Predict the performance of promotional initiatives and identify the best mix of products and tactics to run different events by applying constraint-based modeling.
  • Pick promotions that deliver the best revenue, ROI or profitability outcomes within budget.
  • Access process-specific KPIs to follow up the entire promotional life-cycle.

Reduced Customer Claims and Increased Customer Satisfaction

  • Get full visibility over the compliance rate of trade promotions and promotional costs at the account level.
  • Track planned, estimated and actual spend vs. accrued funds at any moment through built-in reports.
  • Measure the impact of undue claims and deductions through available financial KPIs.
  • Cut down promotional deals settlement time with an automated reconciliation process that is integrated with backend systems.
  • Manage payments and deductions across all levels of the customer’s organization.

Full Mobility Enabled

  • Increase the productivity of mobile workers by providing them with a system that can work both online and offline and run on devices based on the most important platforms: Windows, iOS and Android platforms.

Closed Loop Process

  • The solution is integrated with the other modules of XTEL suite – sales planning, retail execution – and with demand planning systems for a closed-loop sales management.

Use post-promotion analysis, predictive modelling and optimisation tools to spot best-performing promotional initiatives in terms of revenues, volumes or profitability

  • Sales Planning
  • TPM & TPO
  • Retail Execution
  • DSD & Van Sales
  • Sales Intelligence
  • Distributor Mgmt.