POI Pulse – January 16, 2017

Institute Issues Trade Promotion Vendor Panorama 2016/2017 Mid-Cycle
Update

Interim Publication finds 85 percent of
consumer goods companies surveyed are unsatisfied with their ability to
manage promotions

January 16, 2017- The Promotion
Optimization Institute (POI), today released its POI
TPx Vendor Panorama 2016/2017 Mid-Cycle Update, an interim
publication prior to the release of the 2017 POI Trade Promotion
Management/ Optimization (TPx) Vendor Panorama.  The POI annually
produces the Vendor Panorama of the trade promotion
management/optimization market to help consumer goods companies (CPG)
successfully execute trade promotions at the headquarters level.

“For the first time we are issuing a
mid-cycle update to the Vendor Panorama due to the rapid changes that
are occurring in the dynamic TPx marketplace,” said Dale
Hagemeyer, partner and board member of the POI. “We have had a
strong response from executives of over 70 consumer goods companies
that we are currently surveying regarding the TPx and retail execution
market and the technology vendors that support them.  One of the
most important findings is that 85 percent of respondents surveyed are
unsatisfied with their ability to manage promotions. 

“The Trade Promotion (TPx) space has
been quite dynamic during the waning months of 2016 into 2017. Although
various vendors are offering more help to manage promotions than ever
before, our POI Survey data reveals that consumer goods manufacturers
still have issues such as change management, inability to define their
business processes, and budget constraints that have kept many companies
from turning these promotions from a cost of doing business into a
competitive weapon.”

The
POI TPx Vendor Panorama 2016/2017 Mid-Cycle Update
uncovered five significant findings:

High dissatisfaction
with trade promotion capabilities. In addition to the 85 percent of respondents who are
not satisfied with their ability to manage, another five percent
further reported being extremely dissatisfied and 44 percent reported
being dissatisfied.

Room for
improvement with best practices.

Heavy reliance on
spreadsheets. Ninety percent of respondents rely on
spreadsheets in addition to their TPM solutions.

Emergence of
regional vendors. A new crop of regional vendors have
carved out a presence with local and multinational CPG companies due to
their specific, localized expertise.

Custom built
solution implemented at a multinational food company.
This is the first time in at least a decade that a CPG company has
implemented a custom solution. Future TPx Vendor Panorama reports will
continue to track the cost and development time of this customized
solution against off-the-shelf software solutions.

The POI TPx Vendor Panorama 2016/2017
Mid-Cycle Update  includes
company and product updates to 20 of the 24 vendors
analyzed in the 2016 Vendor Panorama across 12 functional areas that
are helping retailers and consumer goods executives manage trade
promotions effectively. These vendors will be reviewed and updated by
POI later in 2017. Learn more