Trade Promotions Management

Key strategies for successful trade promotions operations

Trade promotions form the largest expenditure for CPG businesses — second only to COGS (cost of goods sold) to the tune of 20% of revenue and totaling more than $500 billion in spend globally. It’s no surprise that trade promotions management (TPM) is an important component of an organisation’s business strategy. Some established truths and emerging industry trends are driving businesses to reevaluate their TPM approach to make their operations friction-free and drive a higher return on investment (ROI).

The positive impact of well-managed and well-executed promotions on revenue is no secret. However, while organisations are focusing on maximising the effectiveness of promotions, they are yet to resolve issues surrounding complex trade promotions processes, with its fragmented data sources and fuzzy responsibility matrixes, which has not seen standardised solutions yet. To respond to these challenges, leading CPG/FMCG organisations are closely analysing their processes and looking for innovative solutions to improve metrics beyond effectiveness.

TPMO market trends

Trade Promotions Marketing Trends
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Why to Choose Infosys BPM for Trade Promotions Management Services?

Our TPM services deliver cutting-edge practices, solutions, and frameworks to transform processes, which are digitally enabled, integrated by industry, augmented with analytics and automation, and delivered with increased agility and greater speed. While the notion of running successful trade promotions operations is simple enough, its implementation is anything but simpler. Infosys BPM has been instrumental in helping its CPG clients identify and achieve the objectives of an ideal TPM operating model, which focuses on:

  • Cultivating an end-to-end view of trade promotions
  • Measuring the performance of promotions accurately and timely
  • Accelerating trade promotions by having the right consultant partner

Further, we deliver several comprehensive services to our TPM clients, such as Business Process Consulting/Advisory Services, Managed Trade Promotions Services, Technology Consulting and Implementation Services, and Analytics Advisory and Data Consulting.

  • A domain-led consultative approach to define a target operating model
  • A unique approach to designing TPM solutions based on project objectives, metrics, and best practices to help define, achieve, and communicate measurable business value
  • A trade promotions management repository of tried-and-tested tools and functionalities such as Detailed Process Taxonomy, TPM Value Diagram, and TPM Persona Repository, to name few
  • A practice comprising of experienced consultants and subject matter experts (SMEs) who have partnered with multiple clients in their business transformation journey and built customised solutions to address crucial concerns specific to trade promotions

 

  • A world-class global delivery model with increased focus on all three levers of process efficiencies, promotion effectiveness, and customer experience for the internal and the external stakeholders
  • Supports 9 out of 15 top global retailers and top 10 global CPG organisations
  • Industry best practices built over several years of supporting top global retail and CPG organisations
  • A benchmarking repository of industry best-in-class key metrics in the trade promotions processes
  • Proven in-house programs such as Be-The-Navigator (BTN) and Zero Distance, as well as design thinking, to drive transformation, ensure stable service delivery, and strive for continuous improvement

 

  • Advisory:
    1. A comprehensive diagnostic and process framework with functional key performance indicators (KPIs) and benchmarks and best practices in automation
    2. A ready-to-use IT roadmap and technology evaluation template to measure the maturity of the various technologies connecting the TPM business processes
    3. Improved usability of sales, services, and marketing applications
  • Alliance partnership and rich implementation experience in technology platforms with some of the leading TPM solutions in the market such as Kantar, SFDC, and MS Dynamics, to name few

 

  • Creating an Enterprise Data Bus to integrate trade promotions master, execution, and other data sources, as well as enable actionable insights for informed decision-making
  • Leveraging advanced analytics capabilities such as statistical models and models powered by machine learning (ML) to identify trade promotions optimisation opportunities, reduce disputes, improve payments on time, and so on
  • Role-based dashboards to help clients with a real-time view of KPIs, processes, and transaction status

 

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Key business benefits

Infosys BPM Trade Promotions Management practice delivers several benefits for the clients. Some of the key value delivery include:

Improved efficiency

  • Comprehensive trade promotions planning and execution
  • Increased trade spend efficiency
  • Reduced cost of TPM function
  • Increased requests for straight pass-through (percentage of automated transactions)

Enhanced customer experience

  • Increased satisfaction among key account manager (KAMs) with more customer-facing time
  • Improved customer satisfaction with accurate and timely payments

Increased effectiveness

  • Improved revenue and profitability
  • Reduced out-of-stock (OOS) instances
  • Improved forecast and trade liability estimate accuracy
  • Increased promotions handling time (creation to settlement)
  • Optimisation of fund allocations and promotions calendar
  • Better prediction regarding the net effect of promotions (volume and revenue)

 


Why focus on TPM&O?

Why focus on Trade Promotions Marketing

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