2012 WIPRO LTD | WWW.WIPRO.COM 4 Trade Promotions What are
Trade Promotions? Executed between the Manufacturer and Retailer
Typically funded by the Manufacturer Utilized to increase product
visibility and brand awareness with the consumers and increase
sales volumes/market share for Manufacturer By providing incentives
Types of Trade Promotions Co-operative advertising e.g. catalogue
or TV commercial In-store marketing e.g. improved in-store
placement or displays Additional discounts e.g. volume case buys,
scan data discounts, consumer multi-buys Training programs to
assist sales volume increases
Slide 5
2012 WIPRO LTD | WWW.WIPRO.COM 5 Trade Promotions
Slide 6
2012 WIPRO LTD | WWW.WIPRO.COM 6 Trade Promotions Why Promote?
Driving an increase in consumer sales Why increase sales? Offensive
sales gain Increase market share Recover market share Stimulate
Sales Reward Switch New Product Launches Reward to Trade Because
the trade threatens deletion
Slide 7
2012 WIPRO LTD | WWW.WIPRO.COM 7 Trade Promotions
Optimization/Management Why TPO/TPM? Second largest cost to your
business, after COGS Trade spend accounts for more than 60% of most
CPG companys marketing budget Yet Just 61% of Trade Promotions
generate incremental volume Trade Promotions raise out of stock
incidents by 2-3% Just 62% are fully implemented at all locations
16% of Trade Promotions are unprofitable 30% of Trade funding goes
to the retailers bottom line Key Stakeholders? Key Account Managers
and Category/Brand Managers Trade Marketers, Sales
Directors/Managers Finance Directors, IT, Senior Management
(Board)
Slide 8
2012 WIPRO LTD | WWW.WIPRO.COM 8 Business drivers for analysing
trade promotions * * CGT April 2011
Slide 9
2012 WIPRO LTD | WWW.WIPRO.COM 9 What do good companies do?
integrated strategic and tactical processes analytics - budget,
plan, execute & evaluate uniform definition of financial
measures clear processes to understand the drivers to baseline and
uplift understand promotional quality and what effects it focus on
one-number approach for revenue, volume and spend forecasting focus
on the net effect of a promotional programme experiment with the
shopper
Slide 10
2012 WIPRO LTD | WWW.WIPRO.COM 10 baselinetrade
fundsuplifttargets how much? with whom? what products? the problem
Promax addresses TRACK PREDICT OPTIMIZE
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2012 WIPRO LTD | WWW.WIPRO.COM 11
Slide 12
2012 WIPRO LTD | WWW.WIPRO.COM 12 TPMTPM TPOTPO
Slide 13
2012 WIPRO LTD | WWW.WIPRO.COM 13 the Wipro Promax PX solution
Fully integrated environment Ease of use drives user acceptance A
strategic, scalable & global platform Rapid deployment ensures
rapid ROI
Slide 14
2012 WIPRO LTD | WWW.WIPRO.COM 14 Trade Promotions
Optimization/Management Overall Goal: Improved productivity of
trade spend => Improved profitability Examples of benefits
realized: 1-2% increase in sales with existing Trade Spend 2-3%
increase in ROI 3-5% reduction in inventory through improved
forecasting accuracy Significant productivity gains
Slide 15
2012 WIPRO LTD | WWW.WIPRO.COM 15 Promax Approach to
TPO/TPM
2012 WIPRO LTD | WWW.WIPRO.COM 26 Strategic Optimization
Measuring Effectiveness Efficiency - Extent to which trade spend is
minimized (average cost) Effectiveness - Extent to which trade
spend achieves an increase in sales or profit (incremental
cost)
