Trade Promotions Management: Trends and Customer Success Stories CON8239

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2 Trade Promotions Management: Trends and Customer Success Stories CON8239 Kalyan Ayyaswamy, Director Enterprise Apps, Roll Global Pedro Contreras, SVP Global IT, Helen of Troy Mike Liebson Director VCP Product Strategy, Oracle September 29, 2014

3 Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle. 3

4 Agenda TPM Trends Solution Overview and Recent Innovations Helen of Troy Case Study Roll Global Case Study Q&A 4

5 Trends in TPM Emphasis on predictive analytics and optimization Use of downstream data Collaboration with retailers CEO Marketing Sales Finance Operations Recognition that promotions have impact beyond Sales 5

6 TPM is Critical to Integrated Business Planning as CG companies take a broader view of planning, trade promotion optimization will be increasingly viewed as a key part of the Integrated Business Planning (IBP) process. Simon Ellis, IDC Manufacturing Insights Source: Consumer Goods Technology 2014 Sales and Marketing Report 6

7 Agenda TPM Trends Solution Overview and Recent Innovations Helen of Troy Case Study Roll Global Case Study Q&A 7

8 Two Deployment Options A complete TPM & TPO solution Fund and Event Point Planning Post-promo Point analysis Volume Planning Point Three Products Predictive Trade Planning Trade Promotion Optimization Deductions & Settlement Management Deductions & Point Settlement Or an analytics turbocharger for your existing TPM system Demantra PTP and TPO Existing TPM execution system 8

9 Demantra s Unique Approach Analytical platform Net lift predictive modeling Demantra Trade Solution True optimization Integration across value chain 9

10 Promotion Calendar Optimization R12.2.2: Released September 2013 Creates a complete account promotional plan Respects existing promotions and creates new promotions Promotional plan based on business driven rules 10

11 Demantra Running on Oracle Database 12c In-Memory Database In-Memory released July 2014 Planning Cycle Define Goals Trade Calendar Create Scenario Detailed Adjustments Account Analysis Account Analysis Commit Scenario Sales and Marketing Managers deal with massive data processing at granular demand and promotion spend data when analyzing promotion plans Before 1120 Benefits of real-time analytics: A er 12c IM From 1120 to 11 seconds Analyze 1.3B rows Aggregation across 36M rows 2 week major sell-through report Sec Analyze promotion profit and revenue on real-time basis Optimize promotion spend Better assess timing and cost impacts 11

12 All New Trade Analytics in Adv. Planning Command Center R12.2.4: Released August 2014 PTP hierarchies and data in APCC Weekly base and incremental sales Incremental sales by price point Promotional tactic effectiveness by incremental sales Promotional lift vs. discount % 12

13 Shipments and Consumption Planning R12.2.4: Released August 2014 Promotion Population Date Range Promotional Shipment Window Extend promotional date range to encompass both shipment and consumption windows Engine to forecast shipments based on shipment window and consumption based on consumption window Promotional Consumption Window 13 13

14 Streamlined Launch Management R12.2.4: Released August 2014 Support New Product Introduction and New Distribution Copy data for DM, S&OP and PTP Copy historical Promotions - Filter copied historical promotions from indirect analysis Support Launch date definitions - Zero forecast until launch date - Ongoing data copy until launch date 14

15 Productivity Enhancements R12.2.4: Released August 2014 Streamlined promotion creation Calendar enhancements Streamlined simulation 15

16 Agenda TPM Trends Solution Overview and Recent Innovations Helen of Troy Case Study Roll Global Case Study Q&A 16

17 Pedro T. Contreras Senior VP Global IT September 29, 2014

18 Designer, marketer and distributor of personal care, wellness and household products Company was founded in 1969 as a chain of wig shops in El Paso, Texas In the early 70s, the wig business was phased out in favor of professional quality hair styling tools HoT went public in 1981 (NASDAQ: HELE) raising $1 Million, enough to pay for its Vidal Sassoon brand licenses, this is where all really started. Since then, HoT has grown at a steady pace, organically, and by acquisitions of other brands and other companies, today HoT is forecasting revenues of 1.4 Billion for its FY15 which ends in February 28, 2015

19 Trusted Brands & Innovative Products

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21 OUR ORACLE JOURNEY September Migrated from a Home-Grown application written in VAX COBOL to Oracle EBS December 2011 Implemented Oracle PLM a.k.a. Agile January 2012 Upgraded global instance to and added new modules among them 3 Demantra modules April 2013 Went live with Treasury and Cash Management September of 2013 Migrated a $400M acquisition from a smaller footprint of to current footprint of R September of 2013 Went live with Hyperion Financial Management and its integration to Demantra DM and PTP September 2014 Upgrade ASCP to and Demantra to

22 APPLICATION FOOTPRINT EBS Demantra OTM PLM Hyperion OBIEE & APPS Finance (AP, AR, GL, FA, CA), Treasury, Trade Management, OM, ASCP, GOP, WMS, MSCA (Hand Held), Adv. Pricing, Procurement iexpense, istore, Inventory, PIM, Discrete MFG, Cost Mgmt., Product Data Hub, Quality, Incentive Compensation, Tele-Service. Demand Management, Sales and Operations Planning, Predictive Trade Planning, Claims Settlement. Transportation Operations Planning, Freight payment billing & Claims. Product Collaboration, Product Portfolio Management, Product Costing. Financial Management, Planning, Financial Data Quality Mgmt., Workforce Planning, Capital Asset Planning, Demantra S&O Planning Integration with Budgeting. Finance analytics, Procurement & Spend Analytics, Sales Analytics, Supply Chain and Order Management Analytics.

23 CHALLENGES DURING PTP s ABSENCE Unable to analyze overall effectiveness of past promotions Unable to predict the impact and profitability of future marketing events Unable to predict and monitor trade fund spending Lack of visibility to sales, and account planning Unable to see baseline volume and incremental volume associated with promotions Incapable of creating pre-event simulations (what-if scenarios) Because of all of the above, no sense of ownership for promotion ineffectiveness

24 PTP CYCLE FOOTPRINT EBS R Trade Management Demantra DM Sales History Actuals/Shipments in Multi Currency Hyperion P T P - Event P T P - Volume S&OP Planning Gross Sales & COGS OBIEE R EssBase Data Warehouse BI Dashboards and Reports

25 PTP CYCLE EVENT TRACKING DM Produce statistical forecast based off 3 years of history TM Setup annual trade promotion budgets by customer INT Load budgets from TM into PTP thru system integration PTP Sales force & brokers create customer promotions linking promos to budgets brought over from TM PTP Sales management reviews and approves promotions, and its status is changed to committed INT Load promotions from PTP into TM corresponding budget thru system integration

26 PTP CYCLE EVENT TRACKING CONT. OM Customer executes the promotional tactic through a purchase order/sales order and issues a claim TM Credit department receives a claim, and settles it against corresponding TM budget by using promo ID INT Claims processed and settled on TM generate a credit on customer account in AR and updates associated promotion in PTP to keep track of remaining balance PTP Promotion is closed after all claims have been processed and/or budget has been exhausted OBI Collects all pertinent trade and PTP data to analyze the effectiveness and profitability of trade programs

27 PTP CYCLE VOLUME TRACKING DM Produce sales base forecast from 3 years of historical data of bookings PTP Sales force & brokers load their Sales Based Override Forecast + Incremental forecast by Brand/Month PTP Sale Projected Volume and Value numbers are recalculated with changes PTP Sales team may tweak the data once more by revising SBO and Incremental forecast at the SKU level S&OP Sales forecasts and event plans are aligned with Finance, Marketing, others and consensus plan uploaded. PTP Sales Forecast is Frozen and fed to Hyperion in $ and Units by Customer

28 PTP BENEFITS Baseline Forecasting and Incremental Lift Projections Allows account managers to easily and quickly predict promotional impact Promotion Analytics Compares scenarios and provides predictions on lift and trade fund spending Collaborative Planning Ensures that sales forecasts and event plans are synchronized across Marketing, Finance, Production and Supply Chain Workflow-Driven Exception Management Automatically identifies plan or demand changes that may create problems Promotion Optimization Helps calculate which tactics may yield the maximum ROI, produce the highest volume or maximize profitability

29 2014 NEXT STEPS Breakdown of Demantra cycles by Business Unit/Regional office Migrate $200M Acquisition onto our single global instance of Oracle 2015 Implement Oracle Advanced Forecasting and Demand Modeling Evaluate upgrade of global instance to 12.2.? Evaluate Distributed Supply Chain Environments

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31 Agenda TPM Trends Solution Overview and Recent Innovations Helen of Troy Case Study Roll Global Case Study Q&A 31

32 Roll Global presentation not publicly available 32

33 Agenda TPM Trends Solution Overview and Recent Innovations Helen of Troy Case Study Roll Global Case Study Q&A 33

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35 Value Chain Planning Maximize your OOW experience Monday and Tuesday Demonstrations Moscone West, Upper Right SCM Stations 6, 7, 8 Learn about Trends and Customer Success Stories - Today Service Parts Planning - [CON8414] 5:15pm Attend the VCP Reception Today at Cartoon Art Museum, Monday 6:00~9:00pm Learn about New Capabilities & Roadmaps - Tuesday VCP: Vision, Release Overview & Product Roadmap - [CON8268] 11:30am Considerations for Upgrading to VCP 12.2.x - [CON8253] 4:45pm The Power of 1,000: Leveraging In-Memory Technology in the SCM [CON8267] 3:45pm Performance-Driven Planning : Trends and Customer Success Stories [CON8255] 5:45pm Learn about Industry Best Practices - Tuesday Kaiser s Supply Chain Transformation: Enabled by Technology - [CON8065] 10:15am Driving Business Results in CPG with Sales, Trade Planning, and Optimization - [CON8074] 3:45pm 35

36 Oracle Value Chain Summit 2015 Register Today: OracleValueChainSummit.com Jan 26-28, 2015 San Jose McEnery Convention Center Behind every successful Value Chain Innovation is a committed Agent of Change supporting new opportunities and driving business results. We ll celebrate their achievements at this year s summit our best yet, featuring: More speakers New Hands-On Training Sessions Peer-to-Peer Networking Thought-Leading Speakers: Steve Young NFL Legend & HGGC Co-Founder Andrew Winston Co-Author of Green to Gold Sean Tucker Aerobatic Pilot, Team Oracle #ovcs Oracle Confidential Internal/Restricted/Highly Restricted 36

37 Oracle Value Chain Summit Enabling Agents of Change Why Attend? Hear Exciting Speakers: NFL Legend Steve Young, Co-Author of Green to Gold Andrew Winston and Aerobatic Pilot Sean Tucker are in the lineup. Learn from the Experts: Listen to case studies from leading companies and speak with top partners who have championed change. Expand Your Network: With attendees, this summit is a networking bonanza. Improve Your Skills: Enhance your expertise by joining NEW hands-on training sessions. January 26-28, 2015 San Jose McEnery Convention Center More than 150 sessions across: Maintenance Manufacturing Procurement Product Value Chain Value Chain Execution Value Chain Planning Cross Value Chain Learn more: OracleValueChainSummit.com Join the conversation: #OVCS Oracle Confidential Internal/Restricted/Highly Restricted 37

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