The Impact of Trade Promotion on Customer Planning and Execution
POI Pulse Guest Column
Trade promotion planning and execution is a top priority for both manufacturers and retailers.
Yet many programs fail to provide a return despite a steady increase in promotion spending. In order for promotions to be effective, companies need to begin by building annual sales-volume forecasts for each of their customers. This will help ensure visibility into profit and margin performance over the planning period, and also generate quality data that will enable the company to sharpen its forecasts for subsequent planning periods.
Properly executed trade promotion planning enables companies to establish a consistent approach to measuring and analyzing performance.
Achieving success in this complex undertaking requires consumer products (CP) manufacturers to commit to a standard process and behavior definition of what trade promotion management truly involves and affects.
In fact, what the industry typically calls trade promotion management/optimization (TPM/O) would be more accurately defined as the Customer Annual Planning and Execution (CAPE) cycle.
In order to achieve the efficiency goals of the enterprise, functional teams involved in the CAPE process must come together and align on a single planning hierarchy that outlines which products are sold by which customers, through which channels, by which sales people, in which states/regions, and in which time frames.
Enterprise teams should look at their planning frameworks by defining and agreeing to a single planning hierarchy. Information sharing during business planning cycles becomes a straightforward affair, without the need to manipulate one team’s data in order to render it usable for another team’s purposes.
CP manufacturers
need software solutions that enable them to design, document, and standardize CAPE processes in a way that contributes to the growth of their partners’ businesses.
An effective solution will provide the accuracy, consistency, visibility, and insights necessary to ensure that critical data is current, and aligned with specific processes and planning decisions required of each team member involved in the CAPE process. In addition, by embedding the solution into the overall flow of the enterprise, data which is required by one or more teams becomes available to all, from a single source.
This eBook from Vistex examines the Customer Annual Planning and Execution cycle.
By looking at the customer experience first and working backwards, identifying more accurately what has worked and what has not, manufacturers can create more profitable brands and develop sustained category growth in the expanding world of digital commerce.
Industry News
Flowers Foods’ Strategy in the Midst of Change Source: (Food Biz News September 7, 2018)
Flowers achieved a record high 15.9% market share in the 2nd quarter, said R. Steven Kinsey, CFO and CAO. “Consumers are shopping across multiple channels,” he said. “Traditional grocery stores are becoming more specialized in either premium or value offerings. And we’re now seeing the merger of e-commerce with brick-and-mortar retail. Learn more
Mondelez CEO on Growth, its Future and e-Commerce Source: (CNBC News September 7, 2018)
The new Mondelez strategy focuses on key priorities, including: Transformation of marketing and digital capabilities to increase return on investment; Balanced investments in both global and local heritage brands to achieve higher growth; The creation of a more agile organization with accelerated innovation capabilities; Brand extension into new markets and snacking adjacencies, and Increased investments in channels such as eCommerce. Learn more
POI Retail Execution Summit in NY/NJSeptember 26/28 See the updated agenda, and join Wakefern, Energizer, Edgewell, Dannon, Nestle, Campbell, Pfizer, Unilever, Conagra,Colgate, L’Oreal, DPSG, Mars, Kind Snacks, New Belgium, Kellogg’s, J&J, Mondelez, Kimberly Clark, DSM Brands, Giant Eagle, Red Bull, Pinnacle Foods, Starbucks, Walgreen’s, Crayola, Clif Bar, Cargill, Hormel, Del Monte, PepsiCo,Church & Dwight, Colgate-Palmolive, Coca-Cola, Constellation Brands, RXBAR, Ajinomoto Windsor Foods, Rich Products, Sprout Foods, Meijer, Deoleo Bertolli, Nature’s Bounty, Blue Buffalo, Bellisio Foods, Sprout Organic, Atkins, Hallmark, BIC, Hershey and more!
POI 2018 TPx Panorama Released – Announces Best in Class! Source: (Crossroads – NBC News 8-27-2018)
“Consumer buying behavior and the market landscape have dramatically changed in the last few years, which is further fueling a necessary but profound paradigm shift in the CPG ecosystem that calls for manufacturers and retailers to understand not only the consumer but pricing, trade deals, and digital marketing offers in today’s retail marketplace,” said Pam Brown, Chief Commercial Officer of the POI. “What we have found and reported in this year’s report is that vendors have upped their game and are offering predictive analytics, AI, machine learning, in-flight promotion tracking and other leading-edge capabilities that will help drive efficiency and trade.” Learn more, and access the report here
Nestlé’s Personalized Nutrition Pilot Taps AI Source: (Food Dive September 5, 2018)
The market for health-related products to treat a host of ailments using powders, food and beverages is huge – it’s potentially worth an estimated $15 billion. They are unlikely to ever replace the traditional food businesses that have made these and other companies household names, but grabbing even a small slice of this niche market could go a long way toward boosting stagnating revenues. Learn more
Ulta Revamps Branding Through Online Channels Source: (Marketing Dive September 5, 2018)
Younger consumers also show preference for shopping via online channels, which have become a strong sales driver for Ulta. In earnings reported last week, the company said e-commerce sales increased by 37.9% to $132.8 million for the second quarter. Social media and Instagram, specifically, are also helping to bolster interest in beauty products. Learn more
POI Fall Annual Summit, Dallas, TX “Collaborative Marketing Driven By Data Analytics“,
November 7-9, 2018
Join us for a Celebration, POI’s 10th Year Anniversary, with 300+ CPG and Retailer peers! Attendees include: Colgate-Palmolive Maple Leaf Foods, Nestle, Starbucks, Church & Dwight, Kellogg, Tree House Foods, Pharmavite, Duracell, Energizer, Keurig, Dr. Pepper, 7-Eleven, Tillamook, Constellation Brands, Bimbo Bakeries, PepsiCo, Bush Brothers, Sargento, Rich Products, Bellisio Foods, Massimo Zanetti, DPSG, Deoleo Bertolli, Musco Family Olive, Daisy Brand, AAFES, Ajinomoto Windsor, Walgreen’s, Blue Buffalo, Pinnacle Foods, California Olive Ranch, Del Monte Foods, Mondelez, ConAgra, Palmero Villa, Novartis, J&J, Red Bull, Hormel, Clif Bar, Crayola, Cargill, Brown Forman, Campbell Soup,Abbott Nutrition, Johnsonville, Kimberly Clark and more! Register here
Walmart Testing Crowd-Sourced Delivery Platform Source: (DSN September 7, 2018)
“We’re saving customers time by leveraging new technology, and connecting all the parts of our business into a single seamless shopping experience: great stores, easy pickup, fast delivery, and apps and websites that are simple to use”, said Greg Foran. Learn more
Mars’ Social Media Push: Twix Instagram Story Source: (Marketing Dive September 6, 2018)
Parent company Mars Wrigley Confectionery has been active in the past year on social media, starting with a sweepstakes as part of its return to running a 30-second commercial for M&M’s during the Super Bowl. The brand asked people to record their best touchdown dance while featuring M&M’s candy, and to post the videos on Twitter, Facebook or Instagram to win. Learn more
Don’t miss the next POI Summit!
Presentations from the Recently Concluded POI European Summit are available to POI Members
Presentations from the Recently Concluded POI European Summit are available to POI Members
Campbell Soup’s and Snyder’s-Lance: Early Reviews Positive Source: (Baking Biz September 4, 2018)
“We are taking targeted action around each brand, such as increasing manufacturing capacity and investing in innovation, marketing and e-commerce to drive growth. We will focus nearly 80% of our snacking marketing investment in these power brands to support our growth plans”, Keith R. McLoughlin, interim president and CEO of the Campbell Soup Co. said. Learn more
Scholarship opportunities available!
“I truly enjoy meeting as a group and learning from the professors and colleagues at the POI Certified Collaborative Marketer program at Saint Joseph’s University.
Thanks for putting this certification program together, it’s fantastic!” said Veronica Escalante, Customer Development Manager, Sprout Foods, Inc Learn more
Webinars:
Amazon Rebrands Its Ad Busines Source: (Media Post September 6, 2018)
eMarketer expects Amazon to surpass $2 billion, up 63.5%, in ad revenue this year and estimates the company will grow its market share from 2.7% in 2018 to 4.5% by 2020. A bit more than one-third of Amazon’s ad earnings will come from mobile this year, which gives it 1.3% share of mobile revenue overall. Learn more
The POI Names Pam Brown as Chief Commercial Officer!
Source: (Promotion Optimization Institute July, 2016)
With new CCO Pam Brown, POI builds on its leadership adding industry expertise in eCommerce, analytics, and consumer goods. Additionally, POI Advisory Board Adds New Members: Lisa Malleus, Head of ecommerce Digital Solutions at Mondelēz International, and Lisa Henriksen, most recently serving as Senior Vice President of Marketing and Customer Engagement at Meijer. Learn more
With new CCO Pam Brown, POI builds on its leadership adding industry expertise in eCommerce, analytics, and consumer goods. Additionally, POI Advisory Board Adds New Members: Lisa Malleus, Head of ecommerce Digital Solutions at Mondelēz International, and Lisa Henriksen, most recently serving as Senior Vice President of Marketing and Customer Engagement at Meijer. Learn more
Grocery Orders via App on the Rise Source: (CNBC September 5, 2018)
Apps that deliver perishable food items – including meal kits – are rapidly increasing in popularity. The eMarketer forecast predicts that the number of U.S. adults who order groceries at least once a month with an app will increase by 49.6 percent to 18 million adults this year compared to last year. Learn more
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