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Trade Promotion Management


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Trade Promotion Management - Introduction.

Trade Promotion Management - Introduction.

Published in: Technology, Business

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  • 1. Trade Promotion Management Introduction
  • 2. Content
    • What is Trade Promotion?
    • What is Trade Promotion Management?
    • Who needs it?
    • Why do they need it?
    • How a TPM solution helps?
    • Who provides TPM solutions?
    • What is Closed Loop TPM?
    • Typical Work Flow
  • 3. What is Trade Promotion?
    • Marketing or Promotional activities undertaken to promote a new product, increase sales of existing products, expand market share or create brand awareness.
    • The word Trade Promotion encompasses virtually all forms of Product Promotion and Demand Creation.
    • Trade shows, special pricing, sales incentives, discounted or free display fixtures, demonstrations and freebies such as tickets to sporting events, movies or novelties (pens, paperweights, calculators), etc are few examples of promotional activities.
  • 4. What is Trade Promotion Management?
    • Trade Promotion Management is management of promotional activities by effectively planning, executing and analyzing them.
    • Trade Promotion over the years has grown into beast that needs to be tamed and properly managed. Hence the need for best practices and tools that help take right decisions leading to effective dollar spend.
  • 5. Who needs it?
    • Companies that do lot of promotions will require a TPM Solution.
    • Consumer Packaged Goods (CPG) producers do lot of trade promotions to drive retail sales, increase brand awareness, etc. Hence a TPM solution will immensely benefit them.
  • 6. Why do they need it?
    • Simple, because existing systems (read excel sheets, custom developed solutions) do not offer
    • Abilities to track trade spends
    • Good budgeting tools
    • Complete data – data is usually disparate
    • Integration with other platforms like ERP, CRM and POS systems
    • Effective planning and forecasting tools
    • Systems to monitor current promotional activities and initiatives
    • Good Reporting tools for all effective analysis
  • 7. How a TPM solution helps?
    • Helps
    • to improve Sales Forecast
    • to do effective budgeting
    • in better Analysis of TPM activities
    • to track fund expenditure
    • to know ROI
    • to measure Trade Promotion effectiveness
    • to increase Sales
  • 8. Who provides TPM solutions?
    • Few leading vendors
    • SAP
    • Oracle
    • CAS
    • Synetics Group
    • MEI
    • Adesso Solutions
    • DemandTec
  • 9. What is Closed Loop TPM?
    • Closed Loop TPM is integration of a TPM solution with clients other financial systems to manage and track all TPM activities from start to end.
    • Many TPM solutions are standalone, a Closed TPM implementation will help in gaining complete financial and operational control over TPM activities.
    • Closed Loop TPM involves integration of TPM with clients Financial system (AR,AP,GL), Supply Chain (Inventory, MFG) and third party systems (the Retailers POS system)
  • 10. Typical Work Flow
    • Develop Trade Promotion Strategy
    • Develop Budget Targets and Allocate funds
    • Create Promotion plans
    • Sell/ Negotiate Promotion plans
    • Execute Promotions
    • Settlements - Payments
    • Monitor Plans
    • Post Promotion Analysis
  • 11. References
    • Consumer Goods
    • Accenture
    • Infosys
    • Synetics Group
    • TPMA