Trade promotions are the second largest item on the P&L of a CPG business. A mere 15% improvement on Trade Promotion ROI will improve the top line by 10% and operating margins by 3-5%.
However most businesses still struggle with measuring and profitably optimizing promotions. According to Nielsen Holdings, close to 60% of trade promotions don’t break even.
Challenges rise from siloed data, lack of sales forecasting to sole reliance on Trade Promotion Management and ERP systems etc.
Trade Promotion Optimization softwares help you measure and optimize your trade promotions by capturing and analyzing large amounts of data from various internal and external data sources. TPO solutions project the ROI and sales uplift generated by each promotion and recommend the right type of promotion to be run at the right place and time. You’ll have the ability to forecast sales by setting up different promotion combinations, budget constraints and goal (maximize profit or volume or sales) parameters.
Trade Promotion Optimization solutions leverage machine learning and advanced analytics technologies to harness huge volumes of real-time unstructured and structured data. These solutions are built with the sole goal of getting the maximum promotion ROI for a minimum spend.