trade & promotion planning: plan, execute, optimize (anaplan hub2104)

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ANAPLAN APPSOPERATIONSTrade & Promotion Planning:Plan, Execute, Optimize



Trade & Promotion Planning


Trade & Promotion Planning

There is no single location to track all our

promotion plans.

We have field managers who

know a lot put are not part of the

process.

My promotion plan does not align to my distribution

plans.

Our distributors do not have a

clear picture of what they are promoting and

when.


ANAPLAN TRADE & PROMOTION

Collaboration across departments and groups to ensure

success

Accurately forecast commissions and

attainments

Flexible Hierarchy Managem

ent

Effective

Dating

Cloud Based

Collaboration

Many to Many

Relationships

Features

Better analytics around promotion

spend at a SKU/Location level

Increase net sales and gross margin by

optimizing promotions


A DAY IN THE LIFEAdd Activities

Manage Spend

ROI and Analytics

Setup Program

Brand Manager


Anaplan AppsOPERATIONSTRADE & PROMOTION PLANNINGPLAN, EXECUTE, OPTIMIZE


More Demanding Consumers/ Shoppers


#1: Social Media/Influence36% of smartphone owners check social sites before getting out of bed

80% of Americans online regularly use some form of social media

67% of shoppers spend more when they receive recommendation from their online community of friends

Source: Accenture Research


# 2: Proliferation of Information

Working 7.5Sleeping 6.8Family 3.3Watching TV 3.3Using Internet 2.4Radio 1.9Talking on Phone 1.8Eating 1.7Friends 1.3Reading Books 0.9Music 0.9In Transit 0.7Newspapers 0.7Magazines 0.6TOTAL HOURS 38.6

83% of shoppers make purchase decisions before entering a store

A 56% reduction in rate of square feet added by retailers is expected over the next 5 years

By 2015, ~1.4b mobile apps with augmented reality (AR) will be downloaded annually

47% of consumers have accessed customer reviews in store using their mobile device



#3: Dynamic Consumer/Shopper13,000 people applied at Task Rabbit during the first

week of the government shutdown

Average millennial job tenure will be much shorter than prior generations

64% cite flexible work arrangements as the reason for staying put



More Demanding Retailers/ Manufacturers


#1: Digital Promotions

Influence Drives Loyalty…• Find & engage brand advocates• Activate promotions through

consumers/shoppers• Social buzz becomes a factor in

optimization

Operate on Social Buzz…• Flexibility to react• Demand sensing• Optimized and integrated services


#2: Individualized Promotions

Access on Shoppers’ Terms…• More distribution points• Investment in solutions• Flexible infrastructure• Customization at consumer/shopper level

Solutions are the Focus…• Localized and individualized• Partnerships as a differentiator• New perspective on trade spend• Focus on deep experience and value-added

solutions


#3: Real-Time Information

Dynamic Labor Pools…• Employ and partner with consumers/ shoppers• Manage talent more dynamically• Provide real-time, actionable information

New Delivery Models…• Partner more dynamically• Engage and service more efficiently• Interpret and respond


Impact on Those Who Plan & Analyze

Order Management

Distribution Voids

Distributor Management

New Item Distribution

On-Shelf Availability

POS/ Demand Signal Monitoring

Service Management

Assortment Optimization

Store Compliance

Forecasting

Business Planning

Shopper Marketing

Trade PromotionPricing

Display


Retailer Expectations Promotion ROI by category, market/ region, store

or store cluster, consumer/shopper segments, etc.

Detailed analysis of what is working vs. not across different regions/markets (i.e., a local market view)

Insight/trends within and across channels/COTs

Assistance with short-term (event) and long-term (annual) price/promotion planning

Collaboration on plans/forecasts (so can better plan order and inventory requirements)

http://images.google.com/imgres?imgurl=http://www.midtownatlanta.us/content/images/IMG_0572WholeFoodsPonce.jpg&imgrefurl=http://www.midtownatlanta.us/content/outdoordining.shtml&h=426&w=568&sz=53&tbnid=b_1T5FtNyAgJ:&tbnh=98&tbnw=131&start=3&prev=/images?q=Whole+Foods&hl=en&lr=&sa=G


Manufacturer Expectations Regression analysis to 1) allocate volume &

spending; 2) identify promotion effectiveness; and 3) identify tactics that drive greatest lift/profit

Promotion analysis that enables reallocation of spend among customers, products, events, tactics, etc.

Integration of POS and shipment data

Standard “scorecard” of KPIs/metrics

“What-if” simulation/optimization tools that integrate with demand/supply forecasting


Tool Landscape/Implications There are many tools on the

market designed to help companies with promotion planning/forecasting

None of the tools provide the full scope of functionality in one integrated tool/platform

Many do not support a large number of data sources, model types, and analytic techniques

*Acquired by DemandTec

http://cms.cas.com/default.aspx


How Will Leading Companies Respond

1. Joint/shared trade analytics process between retailers and manufacturers

2. Incorporation of other factors into analytics (e.g., shopper marketing, social media)

3. Standardization, automation, and centralization analytical modeling activities

4. Integrated analytical platform that allows real-time manipulation of granular data


Why Make the Investment… What’s the Business Case?

Improved Operating Cash Flow

Revenue & Profit

Cost/Expenses

Forecast Accuracy

• Better allocation of trade promotion spending based on historical performance

• Better integration of promotion plans/forecasts with new items and marketing programs

• Less time & resources spent on data gathering/ entry, information sharing, manual reporting, etc.

• Reduced cost of maintaining multiple tools and/or spreadsheets

• Improved forecasting based on account promotion plans and real-time management reporting

• Lower out-of-stocks and working capital/inventory


Q&A