Download presentation
Presentation is loading. Please wait.
Published byAlan Ridings Modified over 9 years ago
1
CREATING WIN-WIN TRADE PROMOTIONS #Consumer360
2
Copyright ©2012 The Nielsen Company. Confidential and proprietary. #Consumer360 CAN 1 % MAKE A DIFFERENCE? Significant investments are made… Trade Promotion is essential for shelf placement, feature & display presence and pricing tactics COGS Adv Dist R&D Trade Promo
3
Copyright ©2012 The Nielsen Company. Confidential and proprietary. #Consumer360 HUGE VARIANCE IN PERFORMANCE AND ROI Promotional performance varies widely Average ROI 11.2% 1000% 800% 600% 400% 200% 0% -200% -150%-100%-50%0%50%100%150%200% 37% 56% 6% 1% PROMOTIONAL PERFORMANCE USING FULL ROI ANALYSIS NET INCREMENTAL GSR UPLIFT % ROI %
4
Copyright ©2012 The Nielsen Company. Confidential and proprietary. #Consumer360 Key Challenges Unsophisticated & Unsatisfied Significant Spend THERE IS A NEED FOR OPTIMIZATION 2 nd largest expense in CPG 2.5x ad spend 40% of promotions ineffective Out of stocks ~8% 70%+ clients unhappy Measuring Trade Efficiency Retail Execution v Plan Technology Alignment Integrated Marketing Effectiveness
5
Copyright ©2012 The Nielsen Company. Confidential and proprietary. #Consumer360 CURRENT PROCESS – A NEED FOR IMPROVEMENT Modeling Enhanced Strategy Planning Strategic Optimization and Planning Pre Planning Promotional Evaluation Budget & Targets Analytics Post Event SAP System TPO Baseline Planning Event Volume Planning Promotional Planning Budget Setting TPM Fund Management, Accruals Invoicing Terms Shipment Planning Event Claims ACTIVATE Customized pricing comparison at local level
6
Copyright ©2012 The Nielsen Company. Confidential and proprietary. #Consumer360 DISCIPLINED PROCESS WINS THE DAY Strategic Planning Tactical Planning Promotion Management Post Event Analytics Retail Execution Integrated Retail sales data leveraged throughout the process
7
Copyright ©2012 The Nielsen Company. Confidential and proprietary. #Consumer360 LET’S DO THE SIMPLE MATH Trade spend $200B INDUSTRYYOU $100M $500M $2B $1M $5M $20M
8
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 8 #Consumer360 WINNING REQUIRES MULTIPLE COMPONENTS Embed and propagate Descriptive and predictive Clear framework & knowledge path Evolves with the market and teams Leadership and domain knowledge Culture Content Scale Expertise Cadence
9
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 9 #Consumer360 ONE CLIENT’S STORY TO IMPROVE EXECUTION Gaps between Strategies and Tactics Early wins build momentum Goal: Improve Promotion ROI One big pain point
10
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 10 #Consumer360 EXISTING TOOLS/SOLUTIONS LEFT GAPS Multiple stakeholders Different needs Execution disconnects with strategy TECHNOLOGY TOO COMPLICATED CAN’T ACTIVATE AT RETAIL SIMPLE
11
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 11 #Consumer360 FILLING IN THE DATA GAPS Improve content and cadence …all the time All Categories (In a given category) All Competitors (In all geographies) All Customers
12
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 12 #Consumer360 PROVIDED A SIMPLE TOOL Expand scale across user groups Consistency and transparency ONE Flexibility to multiple users Speed to insight
13
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 13 #Consumer360 A POWERFUL COMBINATION OF TOOLS
14
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 14 #Consumer360 LOCAL SALES TRAINING DRIVES ADOPTION Users understand the data Simulations relevant to local marketplace Field empowered to make decisions Increasing collaboration “Right tool to the right stakeholder” expands expertise
15
Copyright ©2012 The Nielsen Company. Confidential and proprietary. #Consumer360 “ ” $12 MILLION 8x ROI Letting the data guide the conversation has given us the credibility we need with our retail partners ONE CATEGORY, ONE RETAILER, ONE BIG WIN Manufacturer Retailer
16
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 16 #Consumer360 CLIENT IS BUILDING UPON THIS MOMENTUM Collaborative Plans Customer Influence NEW CONTENT AND TOOLS Looking for additional ROI opportunities
17
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 17 #Consumer360 DEFINE AND EVALUATE A STRATEGIC PLAN INTEGRATED TOOLS DRIVE WIN/WIN OUTCOMES DEFINE AND EVALUATE A STRATEGIC PLAN EXECUTE EFFICIENTLY MONITOR AND ADJUST IN REAL TIME CASCADE TO TACTICAL PLANNING Retailer P7 Bogo
18
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 18 #Consumer360 IT’S IMPORTANT TO REALLY UNDERSTAND “INCREMENTAL” Promotion Source of Volume Past ParadigmPurchase Behaviors Store Switch Brand Switch Non – Promoted Volume Subsidized Volume Incremental Volume Non – Promoted Volume Subsidized Volume Time Switch Market Expansion New Paradigm
19
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 19 #Consumer360 Manufacturer Benefit Retailer Benefit HIGHLOW HIGH PROMOTIONAL SOURCE OF VOLUME ENABLES FOCUS ON MUTUALLY BENEFICIAL PROMOTIONS 27% 32% 25% 17% PROMOTIONAL IMPACT FRAMEWORK Retailer Growth Subsidization Manufacturer Growth Mutual Growth Note: Source: Nielsen Promotional Source of Volume Models; 30 category average 2013
20
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 20 #Consumer360 % Promotion Incrementality to Manufacturer/Retailer Brand B +lift WRIGLEY UNCOVERED DIFFERENCES ACROSS BRANDS & HOW THEY LADDERED TO PORTFOLIO & CATEGORY VALUE
21
Copyright ©2012 The Nielsen Company. Confidential and proprietary. 21 #Consumer360 5% - 10% + improvement in trade efficiency Reduced operational costs and time delays Rapid time to value 5% - 10% + improvement on forecast accuracy LET’S PARTNER TO DRIVE BOTTOM LINE RESULTS 1% is a meaningful start toward greater goals
22
#Consumer360 Q&A
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.