Trade Promotion Insights from TradeSmart
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TradeSmart delivers post-promotion automation and analysis that helps maximize Trade Spend ROI for consumer goods manufacturers.
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Trade Promotion Insights from TradeSmart
- 1. Turning Data into Actionable Information TradeSmart Overview
- 2. Confidential - for limited circulation only CONFIDENTIAL: For limited circulation only Implementation Options & Next Steps4 Relational Solutions & Mindtree Background1 2 CPG Expertise & Case Studies 3 POSmart DSR Overview Product Demo 5 AGENDA 6 Analytics as a Service
- 3. Confidential - for limited circulation only 3 Relational Solutions Background Data Warehouse, Integration BI/Analytics “Data Warehouse of the Year!” DataStage ETL Best Implementors Award Informatica’s Partner of the Year Over the YearsIn the Beginning Today “Top 10 Companies on the Move” BlueSky Integration Studio Weatherhead 100 Fastest Growing Businesses “Best at integrating POS with Internal data” “Coolest New Technologies” “Top 5000 Fastest Growing Privately” “Integration Award”
- 4. Confidential - for limited circulation only Mindtree at a Glance 68% North America 18% EU 18% ROW 21% Banking, Financial Services, Insurance 26% Retail, CPG and Manufacturing 21% Travel and Hospitality 24% Hi-Technology and Media 3 $700M+ Annual Revenue $1.75B Market Cap 17,000+ Mindtree Minds Top 3 YOY growth for 3 years
- 5. Confidential - for limited circulation only Global Coverage 5 Basel, Switzerland Brussels, Belgium Cologne, Germany London, UK Paris, France Solna, Sweden Vianen, Netherlands Europe Asia Beijing, China Dubai, UAE Singapore Sydney, Australia Tokyo, Japan IndiaNorth America Company HQs Delivery Centers Bangalore Pune Chennai Hyderabad Warren, NJ Cleveland, OH Dallas, TX Gainesville, FL Phoenix, AZ Redmond, WA San Jose, CA Schaumburg, IL Minneapolis, MN Chicago, IL Los Angeles, CA New York, NY
- 6. Confidential - for limited circulation only Managing Data EDM, DI, MDM, DW, Big Data Provide a comprehensive data management framework, architecture and governance to achieve a “single version” of truth Business Intelligence Descriptive Analytics Provide a comprehensive data reporting/dashboards framework, architecture and governance to deliver appropriate, timely and actionable information Insight Generation Predictive Analytics Through an integrated analytics framework and by applying business rules, statistical models, visualizations, and industry specific context derive actionable insights from disparate data Decision Science & Machine Learning Prescriptive Turning actionable insights into measurable outcomes and improving the speed and quality of decision making Value to the Enterprise Data Driven Organization Maturity Relational Solutions Solidifies Mindtree’s Data and Analytics Continuum The power of an integrated data and analytics framework
- 7. Confidential - for limited circulation only …Defining Mindtree’s CPG Solution Offerings 7 3. Assortment Planning & Prescriptive Analytics 2. Trade Analytics: “TradeSmart” & PromoPro 1. DSR – Single source of integrated, harmonized data “POSmart” 6. Supply Chain Analytics4. Digital Marketing 5. Omnichannel service orchestration
- 8. Confidential - for limited circulation only CONFIDENTIAL: For limited circulation only Implementation Options & Next Steps4 Relational Solutions & Mindtree Background1 2 CPG Expertise & Case Studies 3 POSmart DSR Overview Product Demo 5 AGENDA 6 Analytics as a Service
- 9. Confidential - for limited circulation only Experience in CPG Value Chain 9 Digital Marketing Demand Chain Management Predictive Analytics Trade Promotion Management and Trade Analytics Channel Collaboration Demand Signal Repository & Data Ingestion BI and Analytics Distributor Management Sales Force Automation CRM & Master Data Management
- 10. Confidential - for limited circulation only CONFIDENTIAL: For limited circulation only Implementation Options & Next Steps4 Relational Solutions & Mindtree Background1 2 CPG Expertise & Case Studies 3 POSmart DSR Overview Product Demo 5 AGENDA 6 Analytics as a Service
- 11. Confidential - for limited circulation only Target Office Depot Costco Kroger Marketing Forecasts Shipments Nielsen Submit Reports Most time spent gathering disparate data •G ather ing •Cleaning •Integr ating •Justifying ? Inconsistent reports lead to questionable decisions Sales Forecasts Staple’s ? ? ? ? ? ? The POS Data Dilemma Walmart
- 12. Confidential - for limited circulation only • G a t h e r i n g • C l e a n i n g • I n t e g r a t i n g • J u s t i f y i n g What Makes POS So Difficult to Work With? Property of Relational Solutions, Inc. By Janet Dorenkott June 2015 Big Data, Omni-Channel & New Data Sources End User Requests Change Data Frequency is Inconsistent Data Formats Vary From Source to Source You Are at the Mercy of Retailer Decisions Constantly Changing Conditions POS is Not Always Available & May Cost Money Everyone Wants to See Data Differently Different Sources? Different Reliability Every Retailer Provides Different Data Elements Lack of Integration & Manageability
- 13. Confidential - for limited circulation only POSmart Consistency • Easy Access to Information • Improved Productivity Streamline Data Gathering Synchronize, Integrate & Validate POS Wal-Mart Marketing Forecasts CostcoShipments Sales Forecasts Office Depot Others Staple’s Target Nielsen Kroger Productive Meetings Relational Solutions Automates the Integration & Harmonization of Data
- 14. Confidential - for limited circulation only Automated Harmonization & Integration BlueSky Analytics & PromoPro Feed Other Systems TradeSmart Control Center for Correcting • Consumption • IRI • Nielsen • POS • Master Data • Other Source Data Complex Source Data BlueSky Integration Studio POSmart POSmart DSR BIS BIS Stage Conform Data BlueSky Analytics POSmart Foundation Pre-designed Retailer & Integration Processes Process Control Data Foundation 27
- 15. Confidential - for limited circulation only Automated Harmonization & Integration BlueSky Analytics & PromoPro Plan Improvement • Consumption • IRI • Nielsen • POS • Master Data • Plans • COGS • Shipments • Baseline • Other Source Data Complex Source Data BlueSky Integration Studio TradeSmart POSmart DSR BIS BIS Stage Conform Data BlueSky Analytics TradeSmart Foundation: We add Necessary Data Sources & Data Model Pre-designed Retailer & Integration Processes Process Control Data Foundation 27 • Shipments • Products • Plans • Syndicated PromoPro
- 16. Confidential - for limited circulation only 1. POSmart Architecture BlueSky Integration Studio Engine Pre-built retailer mappings POS Integration process Customizable validation Routines Integration objects for Oracle, SQL Server, DB2, Excel ODBC, OLEDB, Teradata, Neteeza, SAP, RL, txt, FTP, Access, Amazon, AWS, etc. Flexible Data model – Design/Retail Calendars Report Matrix for Data Enrichment BlueSky Analytics, Viewer & Dashboard Control Center Editor 2. TradeSmart Flexible Data Model BlueSky Analytics, Viewer, Excel Plug-in & Dashboard PromoPro SmartSuite Foundation Property of Relational Solutions, Inc. By Janet Dorenkott February, 2014,
- 17. Confidential - for limited circulation only What Makes it all Work? BlueSky Integration Studio (BIS) 17 • POSmart has a powerful data integration engine called BlueSky Integration Studio that allows us to quickly and efficiently read and process source data in any kind of format. • Much of the processing is done in parallel, and in-memory, allowing us to process hundreds of thousands of records per second. • We use in-database processing (ELT) when working with MPP databases, allow us to take full advantage of the databases massively parallel processing engines. • Over 200 cleansing, mapping & validation processes expedite the integration process Any File Format Validate Extract Access Identify Enrich Apply Rules Load
- 18. Confidential - for limited circulation only CONFIDENTIAL: For limited circulation only Implementation Options & Next Steps4 Relational Solutions & Mindtree Background1 2 CPG Expertise & Case Studies 3 POSmart DSR Overview Product Demo 5 AGENDA 6 Analytics as a Service
- 19. Confidential - for limited circulation only • In-House • Resides on any Database • Can Source & Target any Database • Supports virtually any Query Tool • In-House Managed (IMS) • Cloud or Hosted • Hybrid Solid Architecture & Flexible Options Property of Relational Solutions, Inc. By Janet Dorenkott February, 2014,
- 20. Confidential - for limited circulation only CONFIDENTIAL: For limited circulation only DW & Business Intelligence Architecture Reviews Data Integration DSR Implementations TradeSmart & POSmart Analytics as a Service Service Offerings Digital TPM & TPO
- 21. Confidential - for limited circulation only CONFIDENTIAL: For limited circulation only Analytics as a Service4 Relational Solutions & Mindtree Background1 2 CPG Expertise & Case Studies 3 POSmart DSR Overview Product Demo 5 AGENDA 6 Implementation Options & Next Steps
- 22. Confidential - for limited circulation only Follow our Relational Solutions Training Blog http://www.relationalsolutions.com/blog Join Demand Signal Repository Institute Group on Watch our Training & Video’s on Relational Solutions Channel Follow POSmartBlueSky & JanetAtRSI on Follow Relational Solutions on Like Relational Solutions on Contact Janet Dorenkott 440-899-3296 x225 Janetd@relationalsolutions.com Connect with Janet on Stay Connected & Informed!
- 23. India | USA | UK | Germany | Sweden | Belgium | France | Switzerland | UAE | Singapore | Australia | Japan | China Demo
- 24. India | USA | UK | Germany | Sweden | Belgium | France | Switzerland | UAE | Singapore | Australia | Japan | China Appendix
- 25. Confidential - for limited circulation only BlueSky Analytics - Providing Actionable Insights
- 26. Confidential - for limited circulation only What is TradeSmart? Leverages the SmartSolution Architecture with integration & harmonization of various trade components Promotion Automation and Analytics solution. The intersection of plans, shipments and consumption as it relates to trade promotions The ability to accurately analyze the outcomes of trade promotions and compare to planning expectations across all retail segments Provides insights to Promoted Volume The ability to understand whether or not promotions were properly executed and the amount of retail compliance The common repository for all historical promotions which enables multi-year analysis/comparison of trade spend initiatives The ability to feed results to other systems – planning, supply chain, predictive, merchandising, etc.
- 27. Confidential - for limited circulation only Relational Solutions, Inc. BlueSky for Post Event Analytics
- 28. Confidential - for limited circulation only PromoPro to Fine-tune Promotions
- 29. Confidential - for limited circulation only Dashboard Example
- 30. Confidential - for limited circulation only What is Baseline? • Baseline is the expected sales in the absence of a particular marketing variable like price promotion • To determine the effectiveness of a given marketing tactic, one needs to first determine the benchmark baseline sales level • Baseline sales should be relatively stable estimates without wild spikes in volume for any given period • Should be extendable to all retail segments • Use of aggregated vs. disaggregated data • IRI & Nielsen use disaggregated data (ie. store level) • Most others use aggregated data (chain/banner level)
- 31. Confidential - for limited circulation only Baselines • IRI and/or Nielsen syndicated services • We have our own internal model • 3rd party modeling formula • We use Baseline Sales to determine Incremental Sales lift based on • your actual Total Sales during the Promo Event • ROI (Return on Investment) really reflects Return on Incremental Sales • Incremental Sales are calculated from Baseline Sales • There are several methods used to calculate baseline sales, pick the one you are most comfortable with.
- 32. Confidential - for limited circulation only Rule-based system. Allows for a streamlined process where ROI calculation is consistent and accurate Process driven capabilities allowing visibility to non-compliant events Insight into planned spending to retail execution by event or product is visible up the hierarchy Uses cost information to understand your true margins and contribution Provides visibility to historical pricing to protect against margin erosion Knowing “sell-through” and supply chain visibility by incorporating shipments Benefits of TradeSmart
- 33. Confidential - for limited circulation only Benefits of TradeSmart (Cont.) • ROI: Measures effectiveness/efficiency of a trade promotion event • Promotion Effectiveness Index: Which promotions generate the largest incremental gains • Incremental Weeks: Promotion generated x additional weeks of sales • % Lift: Promotion drove x% increase in sales • Promotion Efficiency: % of promoted volume that was incremental to the brand/PPG • % Sell Through: Remaining inventory affects event ROI and forward buy. • Promo Event Tactics Analysis – Results indicate potential revisions to tactical mix to improve ROI. • Purchase Frequency Analysis: Optimize promo event timing, compliment the product life cycle.
- 34. Confidential - for limited circulation only Post Event Report
- 35. Confidential - for limited circulation only -Understand if cannibalization is happening across Brands. -How does price impact volume? Buns are cannibalized when Biscuits are promoted. Cannibalization Report
- 36. Confidential - for limited circulation only Margin Assessment
- 37. Confidential - for limited circulation only Promo Performance vs Share
- 38. Confidential - for limited circulation only Base Vs Incremental
- 39. Confidential - for limited circulation only Ship to Scan
- 40. Confidential - for limited circulation only Feature type Assessment
- 41. Confidential - for limited circulation only ROI
Editor's Notes
- “We engineer meaningful technology solutions to help businesses and societies flourish.” 16 quarters of consecutive growth
- 6
- This slide depicts the data dilemma that consumer goods companies face. The data is there. You get it. You might even have the impression you’re getting too much data. But that isn’t the case. The issue is having that data in a usable and reliable format. The data comes in from so many different sources that it’s impossible to get the full value out of it. Most companies are using it just to produce the reports they need. They just don’t have the time to create new insights even though the data is there. Each one of these source provide information and potentially reports. But analysts spend an average of 80-90% of their time gathering and pulling together data. Inevitably, there are discrepancies in the reports and analysts are then stuck spending more time trying to figure out where the numbers came from. Not only is this a very tedious task but when people’s numbers don’t match, there is a lack of confidence in the data and rightfully so. But it wastes not only the analysts time but it also leads to wasted time on managements part when they argue over who’s data is right and could potentially lead to costly and incorrect decisions. On top of that since 90% of an analysts time is spent gathering, cleaning, integrating and justifying their reports. This is time that keeps analysts away from actually getting to analyze the data and gain new insights. This is why our enterprise solution offers companies a very fast ROI.
- This slide depicts the data dilemma that consumer goods companies face. The data is there. You get it. You might even have the impression you’re getting too much data. But that isn’t the case. The issue is having that data in a usable and reliable format. The data comes in from so many different sources that it’s impossible to get the full value out of it. Most companies are using it just to produce the reports they need. They just don’t have the time to create new insights even though the data is there. Each one of these source provide information and potentially reports. But analysts spend an average of 80-90% of their time gathering and pulling together data. Inevitably, there are discrepancies in the reports and analysts are then stuck spending more time trying to figure out where the numbers came from. Not only is this a very tedious task but when people’s numbers don’t match, there is a lack of confidence in the data and rightfully so. But it wastes not only the analysts time but it also leads to wasted time on managements part when they argue over who’s data is right and could potentially lead to costly and incorrect decisions. On top of that since 90% of an analysts time is spent gathering, cleaning, integrating and justifying their reports. This is time that keeps analysts away from actually getting to analyze the data and gain new insights. This is why our enterprise solution offers companies a very fast ROI.
- POSmart streamlines the cleansing and integration of all these various data sources and puts them into a common repository where the data is clean and reliable. It’s also in a format that’s designed for easy reporting. Reports can be automated to send to users and power users also have an easy to access database where they can do ad-hoc querying. The result is far more productivity both from the analysts position as well as more productive management meetings. In addition, you have more access to reliable information than you’ve ever had. This data will help you know more about your business, provide more value to your management, understand your customer’s better and provide more insights to generate more profits.
- POSmart automates the integration, cleansing and harmonization of POS data with internal and syndicated data as well as other outside data sources. The front end product suite includes analytical tools, a dashboard, reporting tools and editors. Our category management, inventory, forecasting, supply chain and marketing reports leverage the clean POS that’s housed in POSmart. If you are interested in seeing a demo of our POSmart suite, please contact Karen and we will schedule a demo specifically for your company.
- We would like to thank you all for joining us today. We invite you to follow our Relational Solutions training blog by going to our website at relationalsolutions.com. We also suggest you join the Demand Signal Repository Institute on LinkedIn. You can also see more training video’s on our Relational Solutions, YouTube channel. We ask that you follow Relational Solutions and Janet on Twitter, LinkedIn and Facebook and connect with us on LinkedIN. You are also free to contact us via phone and email. Thanks again for joining us and we look forward to your participation next Wednesday!
- TradeSmart leverages the Smart Solution Architecture. It leverages the automation, integration and harmonization of various trade components required to accurately measure trade spend ROI It is a promotion automation and analytics solution that actually lets you start measuring promotion performance as the promotion is going on. It brings together promotion plans, shipments and consumption as it relates to trade promotions. The promotion plans may be in Excel or they may be coming from applications like SAP TPM or Demantra or even Siebel or Prescient. The ability to bring together plans with shipments and consumption is what gives TradeSmart the ability to accurately measure ROI for both the manufacturer as well as the retailer. It offers the ability to not only accurately, analyze the trade promotions but it also lets you compare planning expectations across all retail segments Users can understand whether promotions were properly executed along with retail compliance TradeSmart provides a common repository for all historical promotions, enabling multi-year analysis and comparison of trade spend initiatives In addition results from TradeSpend can be fed into other systems such as planning, supply chain, merchandising, and so on.
- This report shows an example of the type of information you would want to present at a joint business planning session with your retailers. The second column shows promtions that were positive for the manufacturer. The 4th column show performance of the promotions for the retailer. The first column shows KPI’s with up arrows that show the promotions that were both successful for the retailer as well as the manufacturer. These are obviously promotions worth repeating.
- This shows you a screen shot of PromoPro, but we’ll get into more detail on PromoPro in next Wednesday’s demo.
- Promo Event details: Event start/end dates Products at the brand, sub-brand or item level Store Banners Tactics If an automated planning tool does not exist, Promo events would be manually loaded for alignment Inventory Shipments Onhand Discounts off wholesale
- ROI = Based on TOTAL sales and/or INCREMENTAL sales (Methodology TBD) YOY – Example. A high ROI with low sales = an efficient promo event, but sales are not growing…why?. Tactical Analysis - CPI (cost per impression) is calculated tactics is compare efficiency tactics to Indicates what components of the tactical mix can be tweaked to improve ROI. Coupons – Preferred purchase requirement vs discount compare promo efficiency to compare promo results
- ROI = Based on TOTAL sales and/or INCREMENTAL sales (Methodology TBD) YOY – Example. A high ROI with low sales = an efficient promo event, but sales are not growing…why?. Tactical Analysis - CPI (cost per impression) is calculated tactics is compare efficiency tactics to Indicates what components of the tactical mix can be tweaked to improve ROI. Coupons – Preferred purchase requirement vs discount compare promo efficiency to compare promo results