The POI Trade Promotion Optimization Challenge

Welcome Guests: Michael Kantor CEO, Promotion Optimization Institute, LLC

Manufacturers and retailers are becoming more sophisticated when is comes to understanding customers, brands, categories, and stores. Now the data, and technology is available to enable processes and insights to effective promotional, and business planning…

Planning + “What if”+ Execution = Yes

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The POI TPO Challenge

Getting There One Step at a Time

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Limited capabilities Business as usual

Rear-view approach Performance gaps help identify goals and needs

Beginning to understand components of optimization and key metrics Integrating data points

Created trading partner teams; Able to integrate, interpret and share data, mutual KPIs Improved profitability

Have committed organizations to consistently contribute to the mutual profitability of the trading partner relationship Shared success in serving shared shopper/ consumers

Transactional

Analytical/ Tech-Heavy

Manual but Collaborative

TPO – Trade Promotion Optimization

Optimization & Collaboration

Source: Joint POI and Gartner research

The POI TPO Challenge

In summary, the expectation of this exercise is that the combination of predictive accuracy along with insights into a promotion scenario will help to usher in a new way of engaging and collaborating

The Solutions Provider participants have been given a masked data set consisting of:

•  2 Product groups •  3 Products (pricing/spend details, etc.) •  2 Years Historical Data (tactic, duration, etc.) •  One Current Promotion at Retail •  Weekly Shipments •  Weekly Consumption •  Historical Calendar •  Syndicated ACV

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The Measures Metrics of Success (for the one forecasted promotion): •  Forecast Accuracy •  Volume •  Incremental Lift •  ROI (Incremental Profit/Promotional Spend) Other measures of Success (Approach, Optimization, Plan): •  Optimization Strategy •  Optimized Promotion Capabilities •  Recommendations •  Collaborative Approach to Optimization •  Other, Creative Approach

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The Data

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The participants were given a data set from a masked CPG Company. Due to the masking, the project had data quality issues and gaps that each participant needed to identify, make assumptions, and work around the challenges…

•  2 Product groups •  3 Products (pricing/spend details, etc.) •  2 Years Historical Data (tactic, duration, etc.) •  One Current Promotion at Retail •  Weekly Shipments •  Weekly Consumption •  Historical Calendar •  Syndicated ACV

The Participants In order of participation

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The Judges

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Panel of Judges: Dale Hagemeyer, Managing Vice President, Gartner

Michael Kantor, CEO and Founder, Promotion Optimization Institute

Dr. John L. Stanton, Professor of Food Marketing, Editor, Journal of Food Products Marketing, Saint Joseph's University

Each of you! Please fill out the POI TPO Challenge – Audience Participation Form (along with your other POI Summit evaluation form)

Look for results, and detailed report at www.P-O-I.org