TRADE PROMOTION
OPTIMIZATION

Performance driven Trade Promotions Management

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Overview

72% of trade promotions in US do not break even!

That’s a staggering statistic. It becomes even starker when you consider that manufacturers spend about 20% of their revenue towards trade marketing.

The trade marketing ecosystem is complex.

  • If you are a CPG manufacturer – aligning a trade strategy will involve aligning sales, marketing and finance before you can even approach the retailer
  • If you are a retail buyer – you are most likely struggling to optimize multiple brands across multiple categories to ensure your overall category is growing
  • Any attempted changes to the trade strategy typically requires jumping through a lot of internal and external hoops
  • Data availability – sometimes you have too much, sometimes not enough. And almost always you feel overwhelmed by an avalanche of metrics

Even when you know your trade strategy is not optimal – you don’t know how to fix it!

The result – trade promotions which are same as last year

Our trade optimization program has helped multiple CPG manufacturers and retailers achieve win win negotiations and unlock growth without increasing trade investment

There has been an uptick in grocery and pantry purchases during the Covid-19 lockdown, resulting in a significantly
higher % of unplanned promo sales in the last few months because promo and coupon strategies were not modified. You have blown through your trade budget for 2020.

How do you optimize the limited budget now for the back half of 2020? Which categories do not need a coupon? How do you balance Sales and Margin? Let us solve this for you.

The Data Landscape

What data do I need? How do I analyze the different sources and what decisions
can I take with the data I have ? – These are common questions
which have tormented many category managers.

I. Household Panel Data

A snapshot of providers, methodology of data collection and pros and cons

National Consumer Panel New Age Panels Loyalty Card Databases
Provider
Nielsen + IRI Numerator, Fetch Rewards, Checkout 51, Slice Drops, Ibotta Retailer led – Walgreens, Catalina, Kroger, etc.
Data methodology
Self scanning of shopped items by panelists OCR run on receipt photograph Retailer loyalty card database
Panel Size
125,000
  • 500,000 – Numerator
  • 3.2Mn – Fetch
Depending on retailer’s customer size
Pros
Longer history to enable longitudinal comparisons
  • Ecomm is captured
  • Bigger static panel for longitudinal analysis
  • Big static panel
  • Depending on retailer size – could be a good surrogate for national panel
Cons
  • Low panel retention rate
  • Underrepresentation of large pack sizes, instant consumables
  • No reporting of e-comm purchases
  • Poor representation of young families, millennials, senior citizens
OCR challenges – picking and matching the right product Only includes customer data for a retailer

II. Store Data

Syndicated Store Data Retailer Direct Store Data
Use Case
  • General learning on sales trends
  • Competitive Analysis
  • Distribution
  • Price
  • Trade Promotion
  • Retailer Collaboration
  • Category and SCM Management
Source
IRI, Nielsen, SPINS Individual retailers – Walmart Retail Link, Kroger, Dunnhumby, etc
Pros
Data available on hundreds of markets across hundreds of categories for all UPC’s in the category. Consistency allows easy comparison across products, retailers, and markets.
  • Ecomm is captured
  • Bigger static panel for longitudinal analysis
Cons
  • Low panel retention rate
  • Underrepresentation of large pack sizes, instant consumables
  • E-comm purchases are not captured
  • Poor representation of young families, millennials, senior citizens
Data will not include competitive retailers and often won’t cover full category, only your own products

Trade Promotion Optimization

What value will one more tool add if I already have data?

Syndicated scanner data Custom database with precalculated lifts Existing TPM solution Tradesmart
Understanding available data

X

Not Required

Not Required

Automated analysis and metric reporting

X

X

Promo lift and ROI calculations

X

May or may not be available

Evaluating “new” promo scenarios

X

X

May or may not be available

Automated and optimized trade calendar

X

X

X

Trade Promotion Optimization

What are you looking for?

Assessing your needs and maturity

Assessing your Trade Promotions needs and maturity

Understanding the math behind

There are two key computational components of our trade promotions optimization program

How to manage the change

Getting alignment from both internal and external stakeholders important for successful rollout

Trade Promotion Optimization

Success Stories

TPO for a grocery retailer

Assessing your Trade Promotions needs and maturity

Read more!

TPO for a food manufacturer

Assessing your Trade Promotions needs and maturity

Read more!

Generate your A.I-Powered trade promotion plans.

Schedule a demo with us!