Case Study:

Value & Success is Not a TPM Myth

Welcome & Housekeeping

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(866) 740-1260 Code: 3547026

• Today’s Presenter is Michael Cross, Product Marketing Manager at TradeInsight

Meet Popcorn, Indiana

Case Study: Trade Promotion Management

• Popping up Gourmet, Whole Grain Snacks That Their

Customers LOVE!

• Company Began 5 Short Years Ago, With Retail Stores in Malls

Selling as Dale and Thomas Brand

• Popcorn, Indiana is Now Available at Retailers Nationwide (Food, Drug, Mass, Natural, Specialty)

• Competing in Trade-Oriented Category: 40%+ of Volume Sold on Promotion

• New Customers Demanded Trade Dollars

o Needed to Spend and Wanted it to be Effective!

• Snack Category is Highly Promoted

o Needed to Maximize Display Exposure during Events due to Impulse buying

o Consumers Switch between Segments Based on what they “Trip Over” in the Store

Needed to Upgrade Trade Promotion Approach

As Distribution Expanded Across Channels

PEOPLE PROCESS TOOLS

To Get To Next Level, Popcorn, Indiana

Looked At…

Popcorn, Indiana: PEOPLE

• Strong Executive Support, Involved Throughout the Entire

Implementation Process

• Provided Clear Goals for the Project:

o Keep it Simple, so the Sales Team will Use it

o Willing to Invest in Technology, but Need Year One ROI

o Need a Planning System which will Work Around Our Processes and

Distribution Channels (Direct, DSD, Food Service, etc.)

o Need a System which will Allow Cross Functional Teams to View a

“Single Version of the Truth”

Trade Spend is No Longer Simply the Cost of Doing Business.

It is a Strategic & Controllable

Expense Allocated by Us according to Our Business

Strategy.

• No “Legacy Process” was Immune from Review

• Adopt “Best Practices” From Other Companies

• Start with Clean Information in System

o Sales History was Accurate, but Spending wasn’t, so Importing it into New System wouldn’t be Advantageous

o Critical that Customer and Product Masters are Accurate, and a Great Time to Review Naming Conventions on Products

• Develop Reliable Metrics to Allow Measuring Results

• Believe the Numbers and Run Business Accordingly

Popcorn, Indiana: PROCESSES

Popcorn, Indiana: Tools

EXCEL is Not a Long-Term Solution!

• Fine for Building Budgets and Initial Sales Forecasting, but with Far too Many Limitations

• Updating Field Forecasts is Tedious, with Various Versions of Documents Circulating

• Changes in Customer’s Promotional Activity and Timing Shifts Hard to Capture

• No Feed to Order Management System, Requiring Planned Events to be Set up Independently to insure Proper Allowances are Applied

• Deductions Difficult to Clear, and Paid on Customer Documentation, Rather than Planned Promotions

• No Post-Promotion Analysis Capabilities

The ‘Options’

ERP Module Build Solution In-House

Software Solution

Going to the Next Level with Tools

• Software-as-a-Service (SaaS)

• Hosted Solution

• Intuitive, User-Friendly

• Implemented in 6 Months or Less

• Affordable

• Year One ROI

Distributor

Data Retail

Consumption Data

Syndicated

Data

Demand

Planning

ERP

Financials

One Plan

One Place

Measurable Results

• Completed Implementation in 5 Months with a Fully

Functioning Planning System in Only 3 Months

• Deduction Balance Dropped from 3.5% of Sales to Less than

1% in 60 Days

• Reduce Forecasting Error KPI (MAPE) by Half Through

Improved Processes and Visibility Enabled by TPM System

• Sales +24% and Share +2pts without Additional Trade

Spend

Visibility

AFTER

Visibility Without Aggregating Spreadsheets

Plan, Execute & Pay for all Trade Programs within one TPM System

Easier to Communicate Programs/Customer Activities

Track Sales and Spend at Program & Customer Level

Improved S&OP Process and Aligned Team with One Plan

Analysis

AFTER

Measure Lift of Promotions

Have Begun to Optimize Promotions

o Which Tactics Work Best in Each Channel

o Which Price Points Drive the Most Lift while still Profitable

Validate Retailer Execution

Input for Customer P&Ls

Sales Forecasting

AFTER

Integrated Key Systems and Automated Data Feeds

Provide Sales with Better Forecasting “Start Point” by Pre-Populating Base Forecast from Channel Consumption Trends

Better Information for Production Means Orders Ship on Time and Compete!

Deductions and Chargebacks

AFTER

Huge Productivity Gains o Matching and Clearing Deductions (Sales Ops) o Establishing Accruals to Fund Future Deductions (Finance) o Fewer “Spending Surprises”

Decline in Deduction Balance

More $ to Re-Deploy to Future Programs to Drive Revenue

Trade Spend is No Longer Simply the Cost of Doing Business.

It is a Strategic & Controllable

Expense Allocated by Us according to Our Business

Strategy.

Let’s Take Some Questions!

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