clear

How Do You Run Smarter Trade Promotions?

clear
Saama
Saama

What if you could precisely analyze how each promotion performs, test thousands of what-if scenarios, and predict the financials of your future trade promotions — all in real time?

womanWCoupons

As a consumer packaged goods company, think of the benefits of drilling down into how your latest promotional campaigns by retailer and product perform on your tablet or laptop computer.

Better still, imagine no longer running promotions without a pre-calculated ROI that incorporates competitors’ campaigns, weather forecast, and social media trends.

CPG Margins Are Shrinking

Trade promotions, which often consume over 20 percent of revenue, are rarely analyzed or fully understood. Inventory can often be late and out-of-stocks are not uncommon. Around 70 percent of trade promotions don’t reach break even. Industry analysts say that consumer goods companies lose one-third of the money invested into promotion events, and that brand managers and sales executives have a limited way of making intelligent promotion decisions.

Consumers today, driven largely by the last recession, are bargain hunters. And every day these same consumers have a thousand reasons to leave your brand for another, based on the promotion of the day. Understandably, as a CPG manufacturer, there exists a struggle to move resources from transactional to analytical data, and engage in empowered discussions with your retailers at the execution level.

While trade promotions can consume as much as 25 percent of revenue, they are rarely analyzed or fully understood. Inventory can often be late and out-of-stocks are not uncommon.

Saama changes all of that. 

From Data to Insights

Ready Analytics for Trade Promotion

Our advanced analytics solutions for consumer packaged goods help to quickly generate intelligent insights that close the analytics gap — helping you make the most of your data for game-changing outcomes. Working with massive volumes of data, Saama’s modern CPG analytics engine is able to:

  • Leverage and extend existing data assets — such as Enterprise Resource Planning (ERP) and Trade Promotion Management (TPM) systems — to reduce time to value and cost.
  • Harmonize data by aligning shipment, consumption, and promotional information.
  • Realize big data value by blending weather, social, geo, sensor, and more through harmonization.
  • Accelerate outcomes with quick implementation — in weeks, not months or years.
  • Drive business outcomes with custom-fit algorithms and pre-built analytics.

From Data to Insights

Ready Analytics for Trade Promotion

Our advanced analytics solutions for consumer packaged goods help to quickly generate intelligent insights that close the analytics gap — helping you make the most of your data for game-changing outcomes. Working with massive volumes of data, Saama’s modern CPG analytics engine is able to:

  • Leverage and extend existing data assets — such as Enterprise Resource Planning (ERP) and Trade Promotion Management (TPM) systems — to reduce time to value and cost.
  • Harmonize data by aligning shipment, consumption, and promotional information.
  • Realize big data value by blending weather, social, geo, sensor, and more through harmonization.
  • Accelerate outcomes with quick implementation — in weeks, not months or years.
  • Drive business outcomes with custom-fit algorithms and pre-built analytics.

Trade Promotion Solution Areas

Descriptive
Predictive
Prescriptive
Descriptive

Track Your ROI

For Saama Post Event Analytics, our sales dashboards empower you to examine in real time if a promotion or event performed as forecasted or predicted at the account, brand, category, and promoted product group level. This allows for strategically shifting dollars to high ROI product categories or retailers with more favorable promotional structures and the ability to rebalance your trade funding.

With every single executed promotion, you’ll be more informed on the tactics and funding levels necessary to produce a desired objective – everything from driving revenue and volume to increasing profitability, creating brand awareness, gaining product trial, or combating competitive activity.

Best of all, past promotions are completely and thoroughly analyzed to provide you with a “playbook” of what to expect when tactical measures are executed in the marketplace with known levels of trade spending such as off-invoice, bill-back, scan, and lump sum.

Our descriptive capabilities also include:

  •        Consumer preferences and sentiment
  •        Category insights
  •        Competitive brand promotion impact
  •        Supply chain analytics for risk and inventory management
Predictive

Forecast Your ROI

Saama Trade Promotion Optimization (TPO) is something many software companies and consultancies espouse, but very few have been able to deliver with any degree of efficacy, transparency, and/or accountability. To gain acceptance and be useful to your organization, TPO should predict anticipated ROI for a promotion or event. That prediction should be within a standard deviation of five percent in either direction; which is extremely difficult. That’s because most consumer goods companies run tens of thousands of events in a given year. As a consumer goods company, you need to determine which events delivered real value. Millions of iterations exist related to location, product, retailer, ad, feature, display, geography, weather, and demographic data that serve as possible volume and profit drivers.

This is where data meets science, modeling, and machine learning with Saama technology. New, analytical modern data platforms possess decision engines that can view a billion paths a second, determine expediency, and provide suggestions regarding a required course of action. For your sales organization, this can be a powerful application used to negotiate with a retailer for upcoming events — all supported by the associated financial metrics.

      Key capabilities of Saama’s predictive TPO include:

  •     Predictive modeling to determine promotional outcomes.
  •     Google-like querying capability to ask “business-specific”questions.
  •     Recommendations in “natural English language,” with a detailed explanation of the “math behind the problem”.
  •     Ability to perform ”what if” analysis by multiple means “natural language,” “modifying plan attributes,”and “modifying performance or impact”.
  •     Filtering/drill down capability ensures that your users can optimize at the highest level “channel” or drill down to the lowest level “product”.

Other predictive capabilities that enable better decision making include: everyday low price (EDLP), trade promotion effectiveness, and warehouse optimization.

Prescriptive

Optimize Your ROI

Optimizing the Marketing Mix at the retail/account level is the final phase of Saama’s Ready Analytics for Trade Promotions. It stretches beyond the use of known and consumed data related to promotions. Given the ingestion of syndicated data such as Information Resources Inc. (IRI) and Nielsen at the account, week, and SKU level, the ability to arrive at an optimized price can be accomplished today. However, there is a great opportunity to use the same data and additionally provide output related to product assortment for a given retailer.

Based on the constraints and objectives, the math and science to solve for this challenge already exists today. For the final element, product placement can be optimized when planogram data is incorporated into the application. Combining these shelf set changes with specific price zones, clusters or store format can result in sales gains that permanently influence market share numbers.

Saama’s prescriptive capabilities include:

  •       Price optimization
  •       Supply chain analytics — waste reduction and sustainability
  •       Geo analytics

Fluid Analytics℠ for CPG

Fluid Analytics for CPG is an industry-specific orchestration environment that integrates and aggregates structured and unstructured data into an analytics platform.

  • Enterprise-wide data model
  • Extensible and flexible framework for easier customization
  • Predefined data mapping templates that interface with source systems to mitigate development efforts and accelerate implementation of a robust data warehouse.
  • Data architecture that maintains availability, reliability, scalability and data load strategies that follow best practices and ease ongoing data maintenance.
  • Advanced analytical data components to facilitate business intelligence strategy that enables you to quickly measure success and improve your  performance with highly rated performance metrics.

CASE STUDY

Making Trade Spend More Efficient and Effective

Challenge:

At a large consumer packaged goods company, the current process for measuring impact of trade spend (promotions and everyday spend) on revenue, profitability, and ROI was hampered by disparate and misaligned data sources. The company was also spending far too much time on manual spreadsheets, and misunderstood and inconsistent definitions and calculation methodologies.

Solution

Saama developed and delivered a cloud-based, automated “Post Event Analytics” solution with just enough user orchestration and oversight of automated, integrated processes. It also supported consistent and well-documented business definitions, and a flexible, unified user interface for analysis.

Results

Thanks to the Post Event Analytics solution from Saama and the resulting time savings, the company now conducts trade spend evaluation every month, rather than quarterly.   And instead of wasting time on “data wrangling,” our CPG client can now devote more analyst time to deep-dive analyses and recommendations for shifts in trade spend. They expect to see revenue and profitability gains of 4 to 5 percent.

Latest Resources

CGT Webinar
Saama_Trade_Promotion_Analytics_CPG_Thumb

Trade Promotion Analytics

Get the brochure

Achieving Success with Trade Promotion Optimization

Achieving Success with Trade Promotion Optimization

Read the White Paper

Learn How Saama Can Help Your Consumer Packaged Goods Business.

Contact Us
RSS
EMAIL
Facebook
GOOGLE
http://www.saama.com/industries/cpg/">
LinkedIn
Twitter
YouTube