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TradeSmart Case Studies

  1. 1. Presented by Kristy Garrey kgarrey@relationalsolutions.com 440-899-3296 x231 TradeSmart Case Studies Trade Promotion Intelligence
  2. 2. Goals for Today 1. Define Data Repository  Challenges of Current State  Benefits of Ideal State 2. Review TradeSmart Architecture 3. Case Studies
  3. 3. Is this your data repository?  “We’ve got that”  Analysts can go get what they need  Has anyone seen the Wal-Mart sales I saved from last year?  Have you downloaded the item master lately?  When is the latest IRI/AC Nielsen data through?  Have the sales folks added any promotions?  Have the shipments been reconciled in the system yet for last month?  Has purchasing updated the costs since the last raw materials price increase?  Did Kroger run that promotion as planned? I heard there may have been a truck delay getting the order to their DC.  How many selling units of that item were on that display?  Whose calendar should we use for this? (Corporate, retailers, syndicated data provider…)  It’s on the “shared drive”  How much time do you spend playing “data detective”?  Who’s data/analysis is correct?
  4. 4. Gather all the pieces….  Are your Analysts bringing insights or delivering reports?  How many pieces of information are required to put ONE report together?  How long does it take to get each piece of information?  What does the data tell you?  When questions arise outside of regular reporting, can you answer them?  How long does it take to answer one off questions?  Does your sales team go “rogue” and make gut decisions because they data cannot be compiled in time?  How much money does your company spend on data acquisition?  What business decisions are you able to make with the data?  How are you using data to drive sales growth or profitability for your company? What’s driving this? Can you get all the information before the “timer” goes off?
  5. 5. Military, Distributor Budget Nielsen, IRI, TD Linx, etc. Promotions Forecasts Reports Scheduled Shipments Sources Retailers WalMart Food Lion Costco Kroger/DunH Home Depot Sam’s Distributors POSmartIntegrate, Validate, Synchronize & Manage BlueSky Or Other BI Tool Can feed other systems POS Integrator BIS EDI, Text, Retail Link, POL, WorkBench SAP, JDE, DB2, Oracle, JDA Users access via web 3rd Party Data: AC Nielsen/IRI Spectra/NPD Forecast Shipments, Promo, Vendor TradeSmart POSmart An Enterprise Architecture
  6. 6.  Incremental approach leads to overall data consistency  A staging area is required to cross reference, integrate and synchronize data  Star Schema’s are required for certain databases  Architect before loading cubes  Business rules are defined & agreed upon  Single source of information – The truth database  Knowing what a sound architecture is Architecture Fundamentals Property of Relational Solutions, Inc.
  7. 7. Automated Harmonization & Integration Dashboards & Analysis Plan Improvement Trade • Shipments • Products • Plans • Syndicated BlueSky & PromoPro • Planning Data • Shipments • Consumption • IRI • AC Nielsen • POS • Master Data • Forecast Data • COGS • Other Source Data Complex Source Data The Heavy Lifting is Done! Relational Solutions, Inc. Integration Engine TradeSmart • ROI • Lift • Margin & Contribution • Full Aligned & Accurate • Updated as data comes in – no latency • The TRUTH database!
  8. 8. Now that’s Trade Promotion Intelligence!  The ability to leverage an enterprise architecture. Automation, integration and harmonization of various trade components  The intersection of plans, shipments and consumption as it relates to trade promotions  The ability to accurately analyze the outcomes of trade promotions and compare to planning expectations across all retail segments  The ability to understand whether or not promotions were properly executed and the amount of retail compliance  Leverages a common repository for all historical promotions which enables multi-year analysis/comparison of trade spend initiatives  Offers the ability to feed results to other systems – planning, supply chain, predictive, merchandising, etc.
  9. 9.  Rule-based system. Allows for a streamlined process where ROI calculation is consistent and accurate  Process driven capabilities allowing visibility to non-compliant events  Insight into planned spending to retail execution by event or product is visible up the hierarchy  Use cost information to understand your true margins and contribution  Provide visibility to historical pricing to protect against margin erosion  Knowing “sell-through” and supply chain visibility by incorporating shipments How do you know if you have a Trade Intelligence system?
  10. 10. Fine Tune Your Promotions • Group Promo PG’s into Events • Create event at Retail • Realign Promo PG’s dates and Events • To align with sales • Override base and incremental by Event • Override base/incremental values when needed • Allocate Spend to Units • In order to not double count units sold, spend must assigned to units
  11. 11. TPI Accuracy Makes all the Difference Essential workflow interface to allow fine tuning of promotion alignment with shipments, plans and consumption.
  12. 12. Case Study 1 The Marketing Team has completed aligning all events and want to see which ones had the best ROI. The post promotion template report is needed to easily compare aligned events against each other. Relational Solutions, Inc.
  13. 13. - Displays each event with all KPIs - Allows for total retailer promotion review across categories - Allows for total category promotion review across Retailers Relational Solutions, Inc. BlueSky Post Promotion Analysis Template  KPIs & Measures: Consumed Cases, BB/WW Case Rate, OI Case Rate, Pallet Rate, Scan Case Rate, BB/WW Charge, OI Charge, Pallet Charge, Scan Charge, Lump Sum, Total Spend, ASM, Expected Spend, BB/WW Cases Charged, OI Cases Charged, Pallet Cases Charged, Scan Cases Charged, Actual Promo Weeks, Average Wkly Base Cases, Non EDLP Base, Incremental Cases, Spend per Incr Case, Expected Spend per Incr Case, % Lift, Actual Promo Retail, Profit Margin, ROI, Original Estimated Qty, Retailer Profit Margin Dollars, ROI Dollars, Breakeven, Dead Net Unit, Case Pack, List Price, Incremental Eus, Spend per Incr EU, Spend per Consumed Case…….
  14. 14. Case Study 2 The Marketing Team would like to see which events had the best lift and achieved the best ROI. A report charting those two measures is needed to quickly visualize how lift and ROI are related. Relational Solutions, Inc.
  15. 15. - Understand what lift is needed to achieve positive ROI - View which events achieved the best lift - Identify quickly which events need to be looked into further Relational Solutions, Inc. BlueSky Lift % vs. ROI % Report These 3 promotions had no lift and only 1 had positive ROI. It appears that the Family Love Chicken and Rice 8 oz. promotions are not performing well. Further analysis will be required to make adjustments for the future.
  16. 16. Case Study 3 The Marketing Team has been given additional trade funds to use this year. They need to determine which retailer and promoted group would bring the best return on investing additional funds. The ROI Ranking Report is used to review all promotions executed to date and which ones could be repeated to drive sales. Relational Solutions, Inc.
  17. 17. - Rank promotions across time, retailer, and promoted group to find the best ROI. - Focus where to spend incremental trade funds to drive volume. Relational Solutions, Inc. BlueSky Post Promotion Analysis Template
  18. 18. Case Study 4 The Category Team is presenting its trade promotion results to the retailer and needs understand which promotions are working best and which ones need adjustments. A report with traffic lighting is needed to easily highlight areas of importance. Relational Solutions, Inc.
  19. 19. - Understand ROI for Manufacturer and Retailer - Know that Events are working for BOTH you and the customer. - Create Win-Win during JBPS (Joint Business Planning Sessions) with Retailers Relational Solutions, Inc. Winner for Retailer but not Supplier Winner for Supplier but not Retailer Which are our Win-Win promotions?
  20. 20. Case Study 5 Marketing would like to determine whether having a product on promotion cannibalizes other products in its category. To do so, a Bump Chart is required that depicts both Volume and Price. Relational Solutions, Inc.
  21. 21. - Understand if cannibalization is happening across Brands. - How does price impact volume? Buns are cannibalized when Biscuits are promoted. BUSINESS OBJECTIVE Post Event Bump Chart Relational Solutions, Inc.
  22. 22. Case Study 6 A Trade Marketing team is spending days and days just to produce reports that show how a few of their promotions are performing. They cannot get an accurate number because they cannot group events. They have coverage of only 10% and have no idea how the other 90% of promotions are actually working. Relational Solutions, Inc.
  23. 23. Event Alignment Report quickly identifies which promotions are effective. • Base Volume Plan is consistently lower than Actual, forecast needs to be adjusted to reflect more realistic sales projections. • Event in W/E 2-Jun came closest to hitting plan targets despite incremental plan being off by 15k units. • Overall Events are generating sales gains and positive ROI.
  24. 24. Case Study 7 A Trade Marketing team wants to evaluate how their promotions impact the Retailers Category sales. Promotions that are a win for the manufacturer but do not grow the Category will not be considered a win for the Retailer. A weekly trend report is needed. Relational Solutions, Inc.
  25. 25. BlueSky Category Share Report Mfg. Share increased WE 1/21/12 but total Category sales declined , not a win for Retailer - Trend dollar and volume share over 52/53 week period to see what effect your events have on Retailers Category sales.
  26. 26. Case Study 8 Marketing believes competitive activity is eroding their promotional performance. To evaluate if competitors are running promotions at the same time your promotions are running a Category activity report is needed. Relational Solutions, Inc.
  27. 27. In this example it appears that for several Events a competitor was running a promotion concurrently with your promotion, negatively impacting the results of your promotion. Measures: ACV, Actual Total Consumption Volume Units, Actual Share Units, Actual ROI w/o CMG, Actual Pre-Trade Incremental Profit, Actual Incremental Profit w Fixed Trade Spend, Actual Net Revenue Competitor Promotions Your Promotions BlueSky Category Activity Report - Visually track where planned and actual Events occur over 52/53 week period. - What tactics are planned? - Do competitors run activity in parallel? - How profitable is each Event?
  28. 28. What do we do now?  Evaluate Your Needs  What is your annual trade spend budget?  What is your company’s commitment to improving trade spend ROI?  How much time is spent today evaluating trade spend?  What is your coverage?  Start with a Roadmap
  29. 29. Start With a Roadmap  Understand current methods  Reporting, Data gathering, Number of users  Experience of users, Consistency among teams on metrix  Total number of promotions, Annual trade spend  Historical data available?  Level of granularity for data (consumer units or cases)  Type of data available (plan, consumption, shipment, COGS)  Do all departments speak the same language (Category Management/Sales/Finance/IT)?  Do you speak the same language as your retail partners?  Current PPA metrics used today  How are they calculated  How are they sourced (ie. ERP, Nielsen, IRI, DW, etc.)  Reverse engineer metrics (disassemble and analyze components)  What is current coverage  “Gap Analysis” between current method and “best practices”  Evaluate IT infrastructure  DW, Databases supported, BI Tools, Environmental needs (Dev, Prod, etc)  Staff skills and ability to manage PPA application  Lay out steps and milestones to get to an integrated best practices solution  Expected timeframe, Level of difficulty, Resources needed  Expected ROI and payback period of application
  30. 30.  Follow our Relational Solutions Training Blog http://www.relationalsolutions.com/blog  Join Demand Signal Repository Institute Group on  Watch our Training & Video’s on  Relational Solutions Channel  Follow POSmartBlueSky on  Follow Relational Solutions on  Like Relational Solutions on  Contact Kristy Garrey 440-899-3296 x231 KGarrey@relationalsolutions.com  Connect with Kristy on Stay Connected & Informed!