GETTING IT RIGHT. Trade Promotion Optimization

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1 GETTING IT RIGHT Trade Promotion Optimization WIPRO CONSUMER GOODS DO BUSINESS BETTER

2 PAINT THE TOWN YOUR BRAND COLOR So you have a great product or a great service and you just can t wait to tell the world about it. You know it s going to be huge. And yet, when you do go to the market with it, it doesn t do as well as you d hoped. What went wrong? The market has evolved, not in consuming your product but in the way it consumes information and media. And although that seems like a challenge, opportunities lie in its wake.

3 PEEL THE TRADE PROMOTION ONION WITH WIPRO Today Consumer Goods organizations on the one hand are catering to the needs of an informed consumer and on the other hand have to deal with the increasing power of retailers. In such a competitive landscape, it is a must for Consumer Goods (CG) organizations to have an approach to trade promotions that delivers marketing goals and expected ROI. Although trade promotion spend is estimated at 15-20% of gross sales, studies have indicated that trade promotions are not always effective. The need is to have an end-to-end approach across multiple influencers such as business processes, analytics, technology and services - to work seamlessly and deliver a transformational approach to Trade Promotions. Today CG organizations face multiple complex challenges across- 1) Market Maturity CG organization s operations across the globe bring up challenges unique to the markets 2) Channel Explosion a new breed of tech-savvy shopper that prefers to access all retail channels the physical store, catalog call center, e-commerce and mobility 3) Retailers Influence Increased acceptance of Private Label (PL) with consumer and increasing share of PL 4) Sales & Profitability How to get more bang for the buck? 5) Data and IT Systems How to break the silos and deal with different processes and systems during M&A?

4 REAP BENEFITS THROUGH WIPRO S TRADE SPEND TRANSFORMATION MODEL Technology alone cannot help CG organizations to find solutions to the multiple evolving challenges and Wipro s Trade Spend Transformation Model provides an end-to-end solution that is focused on 4 key elements: 1) Process Management 2) Software and Technology Services 3) Optimization 4) Shared Services PROCESS MANAGEMENT SOFTWARE & TECHNOLOGY SERVICES TRADE SPEND TRANSFORMATION MODEL SHARED SERVICES OPTIMIZATION Figure 1: Trade Spend Transformation Model

5 Process Management Best Practices Value Driven Implementation Process Standardization Implementation and Roll Out OCM Training Software & Technology Software Engine Ongoing Support Hosted Model / Pay per Use Integration with ERP Integration with other Native Applications Spend Optimization Build and Maintain Models On Demand Reporting Lift Decomposition Pricing Baseline Shared Services Global Processes Local Support Customer Business Planning Budget Management Settlements & Deductions Learning Figure 2: Services offered in 4 elements of Trade Spend Transformation Model This model takes an end-to-end holistic approach for Trade Promotion Management and Optimization to address: Collaborative Planning, Modeling and Execution Track KPIs Optimization Wipro s approach addresses needs of marketers, trade planners, finance, supply chain and technology stakeholders with the right inputs on products, tactics, timing and place for trade promotion strategies and execution. Wipro s consultants, with a strong mix of industry knowledge and doctorates in analytics, have an in-depth understanding of the elements of trade promotion. This expertise has been leveraged to create the best practices toolkit. The best practices toolkit is the driving force that enables benchmarking and then making recommendations on each of the key elements in the end-to-end Trade Spend Transformation Model.

6 Business Planning Cross Functional Process Management Customer Collaboration Perfomance Evalution Allocate Promotional Budget Components Reconcile and Tracking Manage Enterprise Contracts Simulation Capabilities Analytics for Post-promotion ROI Evaluation of Casual Factors Insights into Design of Future Promotions Customer Business Planning Budget Management Optimization & Insights INDUSTRY BEST PRACTICE Promotion Development & Modeling Cross-functional Process Between Sales, Marketing and Finance Planning and Tracking at the Right Level Modeling and Scenario Building Management Reporting & Post-Event Analysis Retail Execution Operational Reporting Capability Dashboards Settlement & Deductions Reconcilation and Matching Manage and Track Evidences Deduction Reduction Processes Auditing and Tracking Perfomance Communications and Event Management Evaluation of In-store Performance of Promotions Figure 3: Industry Best Practices Toolkit

7 With the above approach, Wipro has delivered results for global clients through differentiated, reliable and scalable Trade Promotions solutions that deliver: Improved return on trade spends Wipro has serviced 40+ Trade Promotion engagements with CG organizations Data visualization to monitor and take action Continuous Process Improvement Transform CG organizations from being reactive to being proactive by sensing customer demand and predicting promotion performance The approach is powered by a team of 400+ consultants. Each member of the team has functional software knowledge, a background in analytics, and a deep understanding of the CG industry. The team is backed by a robust product portfolio including Promax PX and Promax AnalytX. Our Trade Promotion services have been deployed across the businesses of 40+ global clients, helping them extract more value from promotion budgets. BUSINESS IMPACT Using Trade Promotion tools, processes and technology, Wipro makes it easy to track processes, integrate data and harness insights for action. The solutions can be leveraged by the stakeholders to optimize strategies, create predictive planning and be assured of better control over trade promotion outcomes. Wipro s solutions have: 1) 1-2% increase in revenue (1) 2) 2-3% increase in ROI for Trade Promotions (2) For a Global Beverage Manufacturer: By utilizing Optimization Services in the area of Price Optimization, we were able to identify the optimal price points that would have impact on sales and thus enabled the client team to choose the optimum promotion price scenarios For a Global Consumer Goods Manufacturer: Optimized shared services for the deductions and chargeback process thus achieving significant impact and improvements on the total cost of ownership and productivity 3) 3-5% reduction in inventory through improved forecasting accuracy (3) 4) Significant productivity gains: in some cases to the order of 50% through reduction of non-value added tasks (such as data entry, spreadsheet maintenance) (4) (1), (2), (3) & (4) Wipro Research

8 WIPRO CONSUMER GOODS Wipro s dedicated Consumer Goods practice has over consultants and deep expertise with Tier 1 companies in the areas of Sales & Marketing, Value Chain Optimization, Digital Transformation, and Analytics driving Insights. Our focus includes specificity related to Food & Beverage, Home & Personal Care, Apparel & Footwear and Agribusiness & Tobacco segments. Wipro s offerings include Systems Integration, Consulting and BPO. Our industry leading solutions include ownership of Promax, SAP s newest offerings, Salesforce.com, and Market Mix Optimization. ABOUT WIPRO LTD. Wipro Ltd. (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of "Business through Technology" - helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner's approach to delivering innovation, and an organization wide commitment to sustainability, Wipro has a workforce of 140,000 serving clients across 57 countries. For more information, please visit or mail info@wipro.com DO BUSINESS BETTER NYSE:WIT OVER 140,000 EMPLOYEES 57 COUNTRIES CONSULTING SYSTEM INTEGRATION OUTSOURCING CORPORATE OFFICE, WIPRO LIMITED, DODDAKANNELLI, SARJAPUR ROAD, BANGALORE , INDIA. TEL : +91 (80) , FAX : +91 (80) Wipro Technologies 2013 IND/TMPL/SEP 2013-MAR2014