Demand-Driven Promotion Management. Integrating promotions into the end-to-end planning process
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1 Demand-Driven Promotion Management Integrating promotions into the end-to-end planning process
2 Promotions are Top-of-Mind More: More: More: Promotions, Products, Retailers Channels, Methods, Mechanics Efficient, Effective, Accountable 2
3 More: Promotions, Products, Retailers How has Your Pricing Strategy Changed Over the Past Three (3) Years?* Retail Winners Average Performers Laggards 40% 40% 32% 24% 15% 9% We have become more promotions driven Our strategy has not changed Source: RSR Research, April
4 More: Channels, Methods, Mechanics Physical Stores Merchandising Broadcast Print Customers Advertising Marketing Agency In-Store E-commerce Social Merchandising Web Advertising Marketing Agency Mobile ???? 4
5
6 Four Challenges for Promotions Process Benefits Impact Performance Disjointed, Inefficient, Inflexible The Target is Moving REAL Touchpoints are Now Clear Finer Tolerances 6
7 Challenge 1 Disjointed, Inefficient, Inflexible Offers Promotions Themes Media Seasons Campaigns Targets Assortment Prices Forecasts Competition Cost Prices Deals Budgets M E R C H A N D I S I N G M A R K E T I N G A D V E R T I S I N G A G E N C Y 7
8 Challenge 2 The Target is Moving Top Business Challenges Source: RSR Research, April 2013 So now we need to think about inventory also. 8
9 Challenge 2 The Target is Moving Top Business Challenges Source: RSR Research, April 2013 So now we need to think about inventory also. 9
10 Challenge 2 The Target is Moving Top Business Challenges Source: RSR Research, April 2013 So now we need to think about inventory also. 10
11 Challenge 3 Reaching the customer REAL Touchpoints are Now Clear Financial Planning OTB Stores & E-commerce Broadcast Print Assortment Merchandising In-Store Allocation Advertising Marketing Social Inventory Agency Web Replenishment Mobile Price / Markdown 11
12 Challenge 4 Finer Performance Tolerances Ill-considered promotions can kill your pricing strategy Cannibalise more profitable sales Devalue your brand image Steal money from the financial plan Isolated promotions can ruin your plans Drain store stock Overfill the stores Overload replenishment Steal space from more profitable products Increase inventory costs 12
13 Demand-Driven Promotions We need to forecast demand Validate event and promotional plans Assess uplift in revenue / footfall / profit Determine the true cost of a promotion But we re already forecasting demand For Replenishment For Allocations For Assortment For Pricing and Markdowns And Promotions affect all of the above 13
14 Four Strategies for Demand-Driven Promotion Success Process Standardise Feedback Feedforward Connect from End to End One Forecast, One plan Promotion Impact Strategy Impact 14
15 Step #1 Reaching the customer Process Connect the Basics Campaign & Event Planning Promotion Planning Promotion Analysis Event & Promotion Forecasting Print/Web Publishing Deal Management Social & Mobile 15
16 Step #1 Reaching the customer Process Connect the Rest Financial Planning Promotions Planning Broadcast OTB Assortment Promotion Planning Campaign & Event Planning Print In-Store Allocation Print/Web Publishing Promotion Analysis Social Inventory Event & Promotion Forecasting Social & Mobile Web Replenishment Deal Management Mobile Price / Markdown 16
17 Forecast Plan Step #2 Reaching the customer Standardise One Forecast, One Plan Finance OTB Promotions Assortment Allocation Inventory Replenishment Price / Markdown 17
18 Step #3 Reaching the customer Feedback Promotions Impact Forecast uplift, halo and cannibalisation on promotion Those forecasts reflected in Replenishment, Inventory, Assortment and Allocation plans 18
19 Step #3 Reaching the customer Feedforward Strategy Impact Short deliveries Lead Time changes Demand variances in other channels Safety Stock changes 19
20 Four Strategies for Demand-Driven Promotion Success Process Standardise Feedback Feedforward Connect from End to End One Forecast, One plan Promotion Impact Strategy Impact 20
21 To Learn More Visit the JustEnough stand Discuss your business requirements with us Visit
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