The promotional landscape of the CPG industry has seen significant changes in the past decade. The consumer goods industry’s expenditure on trade promotions has been on the rise and research trends indicate that related spends account for 30% of the revenue.
CPG manufacturers and retailers work in collaboration with the shared goal of increasing overall effectiveness and efficiency of trade promotions. While for manufacturers the objective is to increase market share, revenue and profitability, retailers focus on increasing their revenue. Promotions need to be executed on the shop floor, where it matters, with partners to deliver on manufacturers promise.
The key challenge is to have an integrated process over a robust platform as successful promotion campaigns require close alignment across sales, marketing, customer service, finance, partners and external factors.
Mindtree’s trade promotion platform takes out the guesswork out of promotions and helps achieve profitable growth for your brand and your retail partners.
mPromo™- Mindtree’s Trade Promotion Platform
mPromo™ promotes a paradigm shift in the way CPG and retail companies manage their promotion spend. We have integrated planning, optimization, execution and analysis of promotion spend into one framework using SAP technologies, which is known for its industry experience and strong analytical capabilities.
Apart from the built-in advantages of the SAP platform, mPromo™ provides the following out-of-the-box features:
- Partner collaboration with top-down and bottoms-up planning
- Trade promotion modeling over SAP’s data modeling foundation
- Advanced trade promotion optimization by integrating predictive analytics libraries of ‘R’
- Built-in integration with third party and syndicated data-marts via SAP DiSM
- Demand signals from social media and digital coupons
- Effect of macroeconomic indicators
- Enhanced user experience by process modeling via iRise
- Award winning mobile (iPad) extension for field execution
- Advance trade promotion analytics over SAP HANA for near real time promotion evaluation
Mindtree’s mPromo mobile application was awarded the first place at the SAP TechEd event:
mPromo mobile
Mobile Trade promotion with dashboarding and analytics Integration to google maps, planogram and Exchange Developed using SUP 2.2 for iPad.
mPromo™ Trade Promotion Management (TPM)
TPM equips management and sales teams with the information they require to plan, target and implement effective promotions. It’s a marketing technique aimed at increasing demand for products in retail stores based on special pricing, display fixtures, demonstrations, value-added bonuses and no-obligation gifts.
mPromo™ TPM enables:
- Optimal allocation of trade funds
- Central management and alignment of all trade activities
- Prediction and optimization of trade promotion plans
- Closing the loop on payments and deductions
- Insights into trade promotional effectiveness
- Planning and forecasting accuracy
mPromo™ Trade Promotion Analytics (TPA)
TPA, by using mathematical and statistical models, provides vital data to plan trade promotions.
The following infographic provides a bird’s eye view of the advantages of TPA.
mPromo TPA is available to clients as an on-premise and SaaS offering. It features:
- Baseline computation
- Uplift attribution
- Carry forward effect
- Seasonality
- Cannibalization
- Spend v/s contribution
- Competitive effect
- Promotion effectiveness
- Statistical/ mathematical models
- Predictive “what-if” scenarios to predict lift and profitability of future promotions
- Optimization of promotion levers to recalibrate the calendar and revise fund allocation
mPromo™ Trade Promotion Optimization (TPO)
Trade Promotion Optimization enables trade marketing and sales teams to leverage advanced predictive modeling to suggest optimal price and merchandising decisions based on goals and objectives. It also helps access revenue, volume and profitability potential based on promotional period, promotion vehicles, products, price points and other factors.
mPromo TPO features:
- SAP Demand Modeling Foundation engine
- Integration with SAP business processes
- Assessment of planned revenue, volume and profitability for manufacturers and retailers
- Optimal programs and promotions, given planned spend and available budgets
- Constraint-based modeling delivers optimal results within pre-established parameters
- Pre and post volume decomposition for regular and promoted sales
- User configuration options for process controls and planning processes
