Trade Promotion Optimization Planner™

Empower Users to Continuously Analyze, Forecast, and Optimize Marketing Investments and Trade Spend

Today, most Consumer Packaged Goods (CPG) companies are using spreadsheets and execution-oriented Trade Promotion Management (TPM) systems to manage their trade promotion planning. Since these systems were not designed for planning and “what-if” analyses, the process results in sub-optimal trade profitability, and when the plan is copied year-on-year, the outcomes are stale marketing and the disenfranchisement of management.

 

Through an alliance with Synectics Group, River Logic delivers Trade Promotions Optimization (TPO) Planner™ that helps enterprises plan, evaluate, and optimize promotions to significantly increase the return on trade spending. With TPO Planner, consumer goods companies can focus on improving the effectiveness and efficiency of trade dollars at the strategic and planning levels. Additionally, users can compare strategies that maximize operating profit or minimize cost to trade promotion plans that maximize sales volume or revenue. The ability to perform “what-if” and optimization analyses from multiple perspectives helps managers make balanced decisions that meet corporate objectives, and they are executable by the field.

 

TPO Planner is built on the advanced modeling application, Enterprise Optimizer. It integrates seamlessly with Synectics Group’s Account Review application for closed loop trade promotion management. Inputs include market data such as lift curves and competitive pricing, as well as company data including promotional campaigns, costs, etc., The solution enables users to manage real business constraints, such as budgets, minimum number of campaigns, campaign frequency and duration, campaign combinations, etc. and optimize the solution to various objective functions, including maximum operating profit, minimum cost, maximum revenue, and maximum volume.

TPO Planner can:

• drive budget allocation and guidelines to the most profitable regions, products, and customers
• balance and optimize the plan to multiple objectives (revenues, volume, minimum cost, market share, etc.)
• help determine cannibalization within a category
• quantify the financial impact (revenue, cost, profits) of cross elasticity effects
• manage constraints (budgets, number of campaigns by type, frequency, minimum profit, etc.)
• develop more realistic volume, revenue, cost and profit projections leading to better targets and more accurate forecasts

Built on Microsoft infrastructure, the solution will also integrate with River Logic’s Integrated Business Planner solution for optimal, integrated business planning across the enterprise.  To learn more, please contact River Logic.