SAP Trade Promotion Optimization Are you on the path to Trade Promotion Optimization?

1. SAP Trade Promotion OptimizationAre you on the path to Trade Promotion Optimization? Paul Larson Industry Principal SAP America, Inc.

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3. Are you maximizing return on promotion investments and optimizing customer profitability?

4. Defining TermsFrom sense and respond to predict and optimize Which promotions should I run, and when, to achieve my objectives? Optimization Predictive Modeling What changes if I manipulate price and promotion variables? Predict & Optimize How much incremental volume will our planned promotions drive? Promotion Forecasting Competitive Advantage How well did select promotions perform during this time frame? Sense & Respond Effectiveness Analysis How are we performing versus plan (revenue, volume, spend)? Status Reports Time

5. Predictive Modeling & OptimizationBalancing Objectives & Constraints to Maximize Outcomes Profitability Do the activities achieve our objectives? Feasibility Can we procure and manufacture to plan? Plan (Baseline & Incremental) Measure sales* results at plan level to assess effectiveness Predict sales* at the plan level to achieve objectives Execute Forecast (Fixed & Variable) (Promoted & Non-Promoted) Estimate what to procure, make and ship to fulfill to plan Availability Can we distribute and fulfill to plan? *Sales = revenue and volume including both shipments to retail and consumer sell-through

6. Trade Promotion Optimization enables pre-promotion optimization… Head of Sales Sales Account Exec Sales Operations Sales Account Exec Promotion Optimization Sales Management Promotion Strategy Planning Account Management Global Brand Plan Pricing & Promotion Guidelines Marketing Campaign Planning Promotion Pre-Assessment Marketing Contracts & Promotion Templates Account & Promotion Planning Promotion Optimization Volume & Profitability Modeling Strategic Objective Planning Promotion Execution Trade Funds Management Sales Trade Budget Planning & Allocation Account Trade Budget Planning Account Funds Management Finance Demand & Supply Planning Demand & Supply Planning Supply Chain

7. And post-promotion effectiveness analysis Head of Sales Account Service Sales Account Exec Sales Management Settlements & Claims Promotion Effectiveness Customer / Category Impact Marketing Baseline & Incremental Volume Promoted & Non-Promo Volume Claims & Deduction Management Sales Customer Profitability Analysis Finance Supply Chain

8. Act Boldly with SAP Trade Promotion Optimization Improve forecast accuracy • Predict and suggest optimal price and merchandising Project promotion results Quantify and qualify the impact of different promotion activities Result Result Result • Ensure revenue, volume and profitability Maximize funds utilization

9. SAP Trade Promotion Optimization provides visibility • Forward Looking Performance Guidance Backward Looking Performance Analytics • Promotion uplift integrated with volume prediction and simulation • Assess planned revenue, volume and profitability for the manufacturer and channel partner • Determine optimal programs and promotions given planned spend and available budgets • Decompose volume – baseline v. incremental, promoted v. non-promoted • Assess impact of promotion activity on category and customer • Monitor model and forecast accuracy

10. Establishing a foundation for future growth Trade Promotion Optimization serves as a basis to inform other advanced analyses SAP Trade Promotion Optimization Campaign Portfolio Optimization Marketing Mix Modeling Assortment Optimization Store Clustering Big Data – Volume, Velocity, Variety SAP In Memory Computing (HANA) While enabling better, faster visibility via immediate answers, real-time access and deeper insights delivered on a simple, cost-effective platform

11. How to get started with SAP TPO SAP offers consumer products companies options to adopt and implement SAP Trade Promotion Optimization while minimizing cost and risk • SAP “TPO in a Month” • Proof of concept service • Quickly gain “hands on” experience without investing in hardware, software or baseline consulting • Validate firsthand that SAP meets your business requirements • Validate the SAP solution for results and accuracy • Reduce the risk and cost of implementation • Trade Promotion Optimization RDS • SAP Rapid Deployment Solution • Standard implementation best practices to accelerate implementation cycles while lowering costs • Pre-packaged services for external data integration (e.g. POS data) • Combined with implementation best practices for SAP Account & Trade Promotion Management to ensure seamless integration and interoperability

12. Thank you!