Decision making for crucial aspects of a business cannot be done blindly, especially with regards to the four Ps: Product, Price, Place, and Promotion. Data is a major component that must be considered in that process.
This is necessary, as ineffective trade promotions impact revenues for CPG companies negatively. Trade promotions are the second largest cost item on a manufacturer’s P&L statement.
The challenge lies in measuring trade promotion effectiveness and ROI and leveraging data to optimize the trade promotion spend to maximise profits. Most companies have so far relied on gut, spreadsheets, TPM and ERP systems, however, it is time now in 2019 for CPG companies to shift focus to better alternatives like Trade Promotion Optimisation Softwares.