Trade Promotion Optimization Planner™

Trade Promotion Optimization Planner™ will enable you to optimize trade planning and improve overall category performance.

• 1 to 3% revenue improvement
• 0.5% additional profit from trade dollars

As the second largest expense for CPG companies and growing, Trade Promotion is taking up a lot of management thinking these days. At the same time, margins are shrinking and loyalty is waning as economic woes continue. In this environment, the best industry can do today is to balance promotional revenue and volume trade-offs in isolation. As a result, it takes a significant amount of time to understand promotion relationships across retailer and SKU to create a targeted, effective, and profitable trade plan.

Synectic Group's Trade Promotion Optimization Planner is a white-space solution that complements all technologies and analytics that are currently in place to support Trade Promotion decisions. Inputs include all possible trade promotion opportunities and their respective lift curves. In addition, all relevant constraints are captured that can impact decisions, including:

• Budget
• Blackout dates
• Preferred dates
• Forced promotions
• What to promote together
• What to not promote together
• Buy-ahead and other time requirements

With the simple push of a button, you can create a mathematically optimal calendar based on three different objective functions: revenue, volume, or profit. The implications of the underlying Enterprise Optimizer® model that drives the output is significant. The analyst building the trade calendar can spend time thinking about the business, how the possible promotions interact, and quantifying trade-offs. Scenarios can be run without the need to learn how to structure the scenarios.

The benefits are significant:

• Optimal insights into the calendar
• Better allocation of trade budgets to regions and customer
• Improved retailer relationships
• Streamlined cross-functional relationships
• Improved financial performance
• Reduction in cost per incremental trade dollar