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02 May '15 | Debjyoti Paul

German Shoppers: Meet Them in the Fast Lane to Phy-gital

15 January '15 | Ralf Reich

Shoppers Will Share Personal Information (But They Don’t Want to be “Friends”)

15 January '15 | Anil Venkat

Modernize or Perish: Property and Casualty Insurers and IT Solutions

14 January '15 | Manesh Rajendran

Benelux Reaches the Phy-gital Tipping Point: Omnichannel Readiness is Crucial

13 January '15 | Anil Gandharve

The New Omnichannel Dynamic: Finding Core Principles Across Industries

13 January '15 | Debjyoti Paul

Technology does not disrupt business – CIO day 2014 Roundup

02 December '14 | Anshuman Singh

Apple Pay – The Best Is Yet To Come

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Digital transformation is a business transformation enabled by technology

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3 Stages of FATCA Testing and Quality Assurance

06 October '14 | Raman Suprajarama

3 Reasons why Apple Pay could dominate the payments space

18 September '14 | Gaurav Johri

Beacon of Hope: Serving Growth and Customer Satisfaction

05 August '14 | Debjyoti Paul

The Dos and Don’ts of Emerging Technologies Like iBeacon

30 July '14 | Debjyoti Paul

What You Sold Us On – eCommerce Award Finalist Selections

17 July '14 | Anshuman Singh

3 Steps to Getting Started with Microsoft Azure Cloud Services

04 June '14 | Koushik Ramani

8 Steps to Building a Successful Self Service Portal

03 June '14 | Giridhar LV

Innovation outsourced – a myth or a mirage or a truth staring at us?

13 January '14 | Ramesh Hosahalli

What does a mobile user want?

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Trade Promotion Analytics – Part 2

Posted on: 23 February '11

After discussing about advanced analytics tool needed for CPG companies in my previous blog, here I will emphasize on relevant practices that needs to be followed at the organizational level. These practices will only help in strengthening trade promotion dynamics prevailing in the CPG industry.

These three practices if followed strictly can help business organizations in managing their trade promotion cell effectively. The details have been depicted below:

Trade Promotion Practices

1. Set up trade promotion analytics solutions cell

Some of the analytical outputs are very complex for business users to draw insights from, as they are more focused on running their business as opposed to reading complex outputs. Creation of a trade promotion analytics solutions cell can catalyze the usage of uplift/promotion-related insights to re-direct funds. For example, a channel manager torn between price cuts and shelf-space investment decisions for a shampoo product through 7-11 channels can call up the trade promotion analytics cell to discern past contributions and investment guidance from the trade promotions cell before operationalizing the promotional plan.

2. Collaborate to collect more in-store data points

Explore collaborative options to collect more store data points like POS scanner data and shelf-space related data points. One of the critical best practices for optimizing promotions is to intensify the information exchange and collaboration between retailers and CPG companies. Organizations like Promotion Optimization Institute are involved in creating friction-less conditions for an eco-system of retailers and CPG companies to collaborate and learn from promotions. Collaborative data from retailers’ store video (solutions like Store Eyes and MindTree Intelligent Video Surveillance Solutions) can provide crucial footfalls at a shelf/aisle level which can help CPG companies align shelf-space investment decisions better.

3. Institutionalize a structured post-harvest process for learning from trade promotions

Have a formalized ‘post-harvest’ analysis to capture learning’s from a promotion (‘what went well?’/’what could be improved?’). For example, digitally capturing promotion learning’s and making it available via an application could reduce the instances where a sub-optimal trade promotion allocation decision is made.

Trade Promotion Allocation

James Joyce, the Irish novelist was very right when he said “A man’s errors are his portals of discovery.”

Creating a trade promotion cell to methodically learn from successful and not so successful promotions using advanced analytical tools can be a game changer. The trade promotion cell can provide promotion-related insights and guidance to channel managers, category/brand managers and financial teams to help allocate their multimillion trade fund dollars wisely (instead of blindly allocating it based on gut feel or past allocation patterns). And this change could make the difference between profitable CPG firms and not so profitable CPG companies, since trade promotion is the second largest component of cost and can help reduce margin leakage.

The author would like to thank R. Geetha, Anil Kumar, Reshma Dash, Neha, Geetha and Pratibha for their valuable inputs.

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