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Trade promotion management

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  • 1. Trade Promotion Management SAP CRM 2007 Overview
  • 2. SAP 2007 / Page 2 1. Business Environment 2. ISM: TPM Solution Overview 3. Current Solution 4. Analytics and ROI 5. Appendix Business Environment
  • 3. Advertising & Consumer Promotions TPM Manufacturer Retailer Consumer TPM What is Trade Promotion Management (TPM)? Trade promotions are incentives paid by (consumer products) manufacturers to retailers for merchandising support.
  • 4. Business Environment The bottom line: Integrated end-to-end process Increase efficiency Increase effectiveness Growing Retailer leverage Accurately plan and manage trade activities, and streamlined validation process Proliferation of brands and products Leverage analytical insights to optimize trade activities. Increase brand presence and maximize profit
  • 5. 6% 5% 4% 4% 4% 6% 5% 13% 13% 1978 Advertising and Media Consumer Promotion Source: Donnelly Marketing and Accenture Analysis Trade Promotion 23% 22% 15% Sales Facts and Figures: Marketing Spends Marketing Spend for CPG Companies: Percent of Sales 1998 2003E Marketing spend is rising Trade promotion management (TPM) is more than 50% of marketing spend Trade spending is increasing because of the relative strength of the retail customer base, which is now greater than consumer and advertising combined However, revenues are flat Spending trade funds more wisely is the strategic imperative
  • 6. ? Which programs provide the greatest value? Which customers perform the best? How are the funds being spent? What is the return on investment? What is the most effective use of the funds? What uplift are we getting? Basic Questions
  • 7. Promotional Effectiveness Insights to increase brand presence and profits Operational Efficiency Integrated trade promotion processes Alignment of brand and account strategies Optimize trade fund allocation Accurately account for trade expenses Integrated demand planning to reduce out of stock End-to-end trade promotion process will provide . . . Access to downstream data for accurate planning and forecasting Visibility and control of all trade activities across the enterprise Align trade activities against strategic plans and objectives Analysis and insights into trade fund and activity effectiveness Make Intelligent fund and trade decisions Reduce wastes and administrative costs
  • 8. SAP 2007 / Page 8 1. Business Environment 2. ISM: TPM Solution Overview 3. Current Solution 4. Analytics and ROI 5. Appendix ISM: TPM Solution Overview
  • 9. COMPREHENSIVE Enable Sales, Marketing, Service Processes SIMPLE High user adoption and user productivity FLEXIBLE Flexible applications and service enablement CRM Without Compromise! EASE OF USE INNOVATIONCHOICE
  • 10. Brand Management Category Management TPM& Account Management Retail Execution Integrated Sales and Marketing (ISM) Consumer Brand Management Category Management Account & Trade Promotion Management Retail Execution Customer Marketing Category Management HQ Planning Account Managers Sales Reps Plan EventsConsumer Insights Sell-in and Execute The Four Ps Analyze and Budget Coordinate Calendars Connect processes from consumer insight to advertising, consumer and trade promotion and in-store execution. Supporting Processes: Service Management, Analytics
  • 11. Solution Richness Strategic Partner: Nestl SAP 3.0 SDP SAP CRM 5.0 Gained Footprint: Colgate, Maxxium SAP CRM 4.0 Enterprise Suite TPM Solution Early adopters: ConAgra, Wrigley, Heineken SAP CRM 5.1/5.2 Usability Release: Sara Lee, Kraft Foods SAP CRM 2007 Best of Breed TPM Solution Next Generation 2002 2003 2004 2005 2006 2007 SAP TPM over the years Time 5.1/5.2 TPM -Product Hierarchy Promotion -Pertinent Master Data Changes 2007 TPM -Funds Management -Claims Management -Enhancements
  • 12. Board / Executive Marketing Sales Logistics Financials Strategic Targets Brand Targets Brand Plan Marketing Plan Sales Targets Investment Plan Trade Promotion Plan Demand Plan Supply Network Plan Production Plan Top Down Sales Plan Bottom Up Sales Plan Financial Statement Plan Reconciliation Consumer Products Business Process Claims Manage- ment Funds Manage- ment
  • 13. Drill down of TPM Business Process Develop Overall Channel and Customer Plans: Planning Customer Total and Target Volume Product Categories Month Profitability Develop Key Customer/Product Category: By period, events, terms and conditions Agreements Funds Management Trade Promotion Plan: Long-term Short-term Tactics Objectives Templates Claims Management BPS CRM Inputs Brand Plan Category Plan Marketing Calendar Historical Analysis Agreement Acceptance and Promotion Plan Applications Trade Promotion Plan Top Down Sales Plan Bottom Up Sales Plan Claims Manage- ment Funds Manage- ment
  • 14. 1. Headquarter Planning Consensus Plan Sales Budgeting Schedule Creation Process Overview: 2. Account Planning Pre-analysis Event Planning Promotion Planning 3. Sell-in & Negotiation Proposal generation Demand planning Flexibility 5. Evaluation & Analysis KPI Reporting Syndicated Data Funds Tracking 4. Retail Execution, Validation & Settlement FSR support Invoicing Payments
  • 15. 1. Headquarter Planning Consensus Plan Sales Budgeting Schedule Creation Process Overview: 2. Account Planning Pre-analysis Event Planning Promotion Planning 3. Sell-in & Negotiation Proposal generation Demand planning Flexibility 5. Evaluation & Analysis KPI Reporting Syndicated Data Funds Tracking 4. Retail Execution, Validation & Settlement FSR support Invoicing Payments Trade Funds Management Budget tracking Planned, Committed, Accrued Trade Funds Management Planned, Committed, Accrued Budget Trade Promotion Management
  • 16. Process Overview: 2. Account Planning Pre-analysis Event Planning Promotion Planning 3. Sell-in & Negotiation Proposal generation Demand planning Flexibility 5. Evaluation & Analysis KPI Reporting Syndicated Data Funds Tracking 4. Retail Execution, Validation & Settlement FSR support Invoicing Payments Finalization Prepayments Trade Claims Management Deductions Invoices Direct Payments Trade Claims Management Schedule Payments 1. Headquarter Planning Consensus Plan Sales Budgeting Schedule Creation
  • 17. Customer-Centric Business with SAP CRM 2007 The TPM functionality of SAP CRM 2007 Ensures consistency, effectiveness, and predictability throughout the TPM business process: Headquarter Planning and Budgeting Funds Management Account Management and Trade Promotion Planning Account Sell-in and Promotion Plan Execution Trade Claims Management Analytics and ROI
  • 18. TPM Productivity Enhancements CRM 2007 Takeaway: Built on existing TPM Platform Trade Funds Management Trade Claims Management TPM Functional Enhancements fully integrated into SAP ERP, front to back!
  • 19. SAP 2007 / Page 19 1. Business Environment 2. ISM: TPM Solution Overview 3. Current Solution 4. Analytics and ROI 5. Appendix Current Solution
  • 20. TPM Within SAP CRM 2007 Headquarter Planning and Budgeting Flexible planning from the top down, based on: Marketing and sales planning; including organization, product categories, historical a