By grouping trade promotion events, an event summary report can show details of all events, at a single retailer, for a particular promoted group. It allows business users to compare plan versus actual, for all events at once.
This example from TradeSmart includes customer metrics to provide insights as to which events are profitable for both the manufacturer as well as the retailer. Events that are not profitable for the retailer will not be executed again, regardless of the results for the manufacturer. This is an important part of JBP, joint business planning since JBP is designed to have both the retailer and manufacturer working together to do what’s best for both parties.
Trade Promotion Event Summary reports should have the ability to track what the cost was to obtain each unit in incremental sales and to show ROI. ROI is then compared overall and without fixed costs.
The objective of this chart is to aid business users in quickly identifying events that meet or exceed expectations. It is also to spot events that call for more detailed analysis in order to determine the basis for under performing trade promotion results, thus allowing trade teams to take action.
Companies often confuse TPM, Trade Promotion Management with TPO, Trade Promotion Optimization. Before TPO, companies have to be intelligent about the promotions they are running. TPM is complimented by TPI. Most companies who think they need TPO are actually looking for TPI, Trade Promotion Intelligence.
Follow our next blog for more information on trade promotion analysis and register for our TradeSmart Demo March 31st.