Trade Promotion Optimization

About Trade Promotion Optimization

Today, most Consumer Packaged Goods (CPG) companies are using spreadsheets and execution-oriented Trade Promotion Management (TPM) systems to manage their trade promotion planning. Since these systems were not designed for planning and “what-if” analyses, the process results in sub-optimal trade profitability, and when the plan is copied year-on-year, the outcomes are stale marketing and the disenfranchisement of management.

Through an alliance with Synectics Group, River Logic delivers Trade Promotions Optimization (TPO) Planner that helps enterprises plan, evaluate, and optimize promotions to significantly increase the return on trade spending. With TPO Planner, consumer goods companies can focus on improving the effectiveness and efficiency of trade dollars at the strategic and planning levels. Additionally, users can compare strategies that maximize operating profit or minimize cost to trade promotion plans that maximize sales volume or revenue. The ability to perform “what-if” and optimization analyses from multiple perspectives helps managers make balanced decisions that meet corporate objectives, and they are executable by the field.

TPO Planner is built on the advanced modeling application, Enterprise Optimizer. It integrates seamlessly with Synectics Group’s Trade Promotion Management application, Account Review, as well as other TPM applications for closed loop trade promotion management. Inputs include market data such as lift curves and competitive pricing, as well as company data including promotional campaigns, costs, etc. The application enables users to manage business constraints and to optimize to various objective functions, including maximum profit, maximum revenue, and maximum volume at the click of a button.

Built on Microsoft infrastructure, the solution will also integrate with River Logic’s Integrated Business Planner solution for optimal, integrated business planning across the enterprise.