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Trade Promotion in a Volatile Economy May 26, 2010. Contents. Current Trade Promotion Landscape Best Practices for Trade Promotion Management. Trade Promotion Landscape and Best Practices. Context for TPM Landscape.
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Trade Promotion in a Volatile Economy May 26, 2010
Contents • Current Trade Promotion Landscape • Best Practices for Trade Promotion Management
Context for TPM Landscape • Perficient recently conducted a survey that canvassed over 60 CPG companies • This survey focused on three key elements: • What new TPM issues companies are facing due to a volatile economy • How companies are dealing with these new challenges • 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
Trade Promotion Landscape: Increased Scrutiny on Trade Current Economic Environment's Impact on TPM Program and Tools 64% 15% 12% 5%
Trade Promotion Landscape: Investment Rational If you are continuing to invest in TPM solutions, which answer best describes your reason?
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?
Trade Promotion Landscape:New Priorities and Capabilities What TPM capabilities do you believe take on additional value during a difficult economic period?
32% 25% 20% 18% 5% Trade Promotion Landscape: Impact on Trade Spend What will happen to your overall trade spend as a result of the current economic conditions?
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
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
Sales Forecasting and Consensus Driven Planning Historical Demand Planning Relationships
Sales Forecasting and Consensus Driven Planning Industry Trend: Consensus Amongst Stakeholders and Active Participation of Sales
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 2Institute of Business Forecasting and Planning, Anish Jain