TradeSmart Case Studies

Presented by Kristy [email protected]

440-899-3296 x231

TradeSmart Case StudiesTrade Promotion Intelligence

Goals for Today

1. Define Data Repository

Challenges of Current State

Benefits of Ideal State

2. Review TradeSmart Architecture

3. Case Studies

Is this your data repository?

“We’ve got that”

Analysts can go get what they need

Has anyone seen the Wal-Mart sales I saved from last year?

Have you downloaded the item master lately?

When is the latest IRI/AC Nielsen data through?

Have the sales folks added any promotions?

Have the shipments been reconciled in the system yet for last month?

Has purchasing updated the costs since the last raw materials price increase?

Did Kroger run that promotion as planned? I heard there may have been a truck delay getting the order to their DC.

How many selling units of that item were on that display?

Whose calendar should we use for this? (Corporate, retailers, syndicated data provider…)

It’s on the “shared drive”

How much time do you spend playing “data detective”?

Who’s data/analysis is correct?

Gather all the pieces…. Are your Analysts bringing insights or delivering reports?

How many pieces of information are required to put ONE report together?

How long does it take to get each piece of information?

What does the data tell you?

When questions arise outside of regular reporting, can you answer them?

How long does it take to answer one off questions?

Does your sales team go “rogue” and make gut decisions because they data cannot be

compiled in time?

How much money does your company spend on data acquisition?

What business decisions are you able to make with the data?

How are you using data to drive sales growth or profitability for your company?

What’s driving this?

Can you get all the

information before

the “timer” goes off?

Military,

Distributor

Budget

Nielsen, IRI,

TD Linx, etc.

Promotions

Forecasts

Reports

Scheduled

Shipments

Sources

RetailersWalMartFood LionCostcoKroger/DunHHome DepotSam’sDistributors

POSmartIntegrate, Validate, Synchronize & Manage

BlueSky

Or Other BI Tool

Can feed other systems

POS Integrator

BIS

EDI, Text, Retail Link, POL, WorkBench

SAP, JDE, DB2, Oracle, JDA

Users access

via web

3rd Party Data:AC Nielsen/IRISpectra/NPD

ForecastShipments, Promo, Vendor

TradeSmart

POSmart

An Enterprise Architecture

Incremental approach leads to overall data

consistency

A staging area is required to cross reference,

integrate and synchronize data

Star Schema’s are required for certain databases

Architect before loading cubes

Business rules are defined & agreed upon

Single source of information – The truth

database

Knowing what a sound architecture is

Architecture Fundamentals

Property of Relational Solutions, Inc.

Automated

Harmonization

& Integration

Dashboards&

Analysis

Plan

Improvement

Trade• Shipments• Products• Plans• Syndicated

BlueSky & PromoPro

• Planning Data

• Shipments

• Consumption

• IRI

• AC

Nielsen

• POS

• Master Data

• Forecast Data

• COGS

• Other

Source Data

Complex

Source Data

The Heavy Lifting is Done!

Relational Solutions, Inc.

Integration

Engine

TradeSmart

• ROI

• Lift

• Margin & Contribution

• Full Aligned & Accurate

• Updated as data comes in – no latency

• The TRUTH database!

Now that’s Trade Promotion Intelligence!

The ability to leverage an enterprise architecture. Automation,

integration and harmonization of various trade components

The intersection of plans, shipments and consumption as it relates

to trade promotions

The ability to accurately analyze the outcomes of trade

promotions and compare to planning expectations across all retail

segments

The ability to understand whether or not promotions were

properly executed and the amount of retail compliance

Leverages a common repository for all historical promotions which

enables multi-year analysis/comparison of trade spend initiatives

Offers the ability to feed results to other systems – planning,

supply chain, predictive, merchandising, etc.

Rule-based system. Allows for a streamlined process where

ROI calculation is consistent and accurate

Process driven capabilities allowing visibility to non-compliant

events

Insight into planned spending to retail execution by event or

product is visible up the hierarchy

Use cost information to understand your true margins and

contribution

Provide visibility to historical pricing to protect against margin

erosion

Knowing “sell-through” and supply chain visibility by

incorporating shipments

How do you know if you have

a Trade Intelligence system?

Fine Tune Your Promotions

• Group Promo PG’s into Events• Create event at Retail

• Realign Promo PG’s dates and Events• To align with sales

• Override base and incremental by Event

• Override base/incremental values when needed

• Allocate Spend to Units

• In order to not double count units sold, spend must

assigned to units

TPI Accuracy Makes all the DifferenceEssential workflow interface to

allow fine tuning of promotion

alignment with shipments,

plans and consumption.

Case Study 1The Marketing Team has completed

aligning all events and want to see which

ones had the best ROI. The post promotion

template report is needed to easily compare

aligned events against each other.


- Displays each event with all KPIs

- Allows for total retailer promotion review across categories

- Allows for total category promotion review across Retailers


BlueSky Post Promotion Analysis Template

KPIs & Measures:

Consumed Cases, BB/WW Case Rate, OI Case Rate, Pallet Rate, Scan Case Rate, BB/WW Charge, OI Charge, Pallet

Charge, Scan Charge, Lump Sum, Total Spend, ASM, Expected Spend, BB/WW Cases Charged, OI Cases Charged,

Pallet Cases Charged, Scan Cases Charged, Actual Promo Weeks, Average Wkly Base Cases, Non EDLP Base,

Incremental Cases, Spend per Incr Case, Expected Spend per Incr Case, % Lift, Actual Promo Retail, Profit Margin,

ROI, Original Estimated Qty, Retailer Profit Margin Dollars, ROI Dollars, Breakeven, Dead Net Unit, Case Pack, List

Price, Incremental Eus, Spend per Incr EU, Spend per Consumed Case…….

Case Study 2The Marketing Team would like to see

which events had the best lift and achieved

the best ROI. A report charting those two

measures is needed to quickly visualize how

lift and ROI are related.


- Understand what lift is needed to achieve positive ROI

- View which events achieved the best lift

- Identify quickly which events need to be looked into further


BlueSky Lift % vs. ROI % Report

These 3 promotions had no lift and

only 1 had positive ROI. It appears

that the Family Love Chicken and

Rice 8 oz. promotions are not

performing well. Further analysis

will be required to make

adjustments for the future.

Case Study 3The Marketing Team has been given

additional trade funds to use this year. They

need to determine which retailer and

promoted group would bring the best return

on investing additional funds. The ROI

Ranking Report is used to review all

promotions executed to date and which

ones could be repeated to drive sales.


- Rank promotions across time, retailer, and promoted group to find the best ROI.

- Focus where to spend incremental trade funds to drive volume.


BlueSky Post Promotion Analysis Template

Case Study 4The Category Team is presenting its trade

promotion results to the retailer and needs

understand which promotions are working

best and which ones need adjustments. A

report with traffic lighting is needed to easily

highlight areas of importance.


- Understand ROI for Manufacturer and Retailer

- Know that Events are working for BOTH you and the customer.

- Create Win-Win during JBPS (Joint Business Planning Sessions) with Retailers


Winner for

Retailer but

not Supplier

Winner for

Supplier but

not Retailer

Which are our Win-Win promotions?

Case Study 5

Marketing would like to determine whether

having a product on promotion cannibalizes

other products in its category. To do so, a

Bump Chart is required that depicts both

Volume and Price.


- Understand if cannibalization is happening across Brands.

- How does price impact volume?

Buns are

cannibalized

when Biscuits

are promoted.

BUSINESS OBJECTIVE

Post Event Bump Chart


Case Study 6A Trade Marketing team is spending days

and days just to produce reports that show

how a few of their promotions are

performing. They cannot get an accurate

number because they cannot group events.

They have coverage of only 10% and have

no idea how the other 90% of promotions are

actually working.


Event Alignment Report quickly identifies which promotions are effective.

• Base Volume Plan is consistently lower than Actual, forecast needs to be adjusted to reflect more

realistic sales projections.

• Event in W/E 2-Jun came closest to hitting plan targets despite incremental plan being off by 15k

units.

• Overall Events are generating sales gains and positive ROI.

Case Study 7A Trade Marketing team wants to evaluate

how their promotions impact the Retailers

Category sales. Promotions that are a win

for the manufacturer but do not grow the

Category will not be considered a win for the

Retailer. A weekly trend report is needed.


BlueSky Category Share Report

Mfg. Share

increased

WE 1/21/12

but total

Category

sales

declined ,

not a win

for Retailer

- Trend dollar and volume share over 52/53 week period to see

what effect your events have on Retailers Category sales.

Case Study 8Marketing believes competitive activity is

eroding their promotional performance. To

evaluate if competitors are running

promotions at the same time your

promotions are running a Category activity

report is needed.


In this example it appears that for several Events a competitor was running a promotion concurrently with your promotion, negatively impacting the results of your promotion.

Measures: ACV, Actual Total Consumption Volume Units, Actual Share Units, Actual ROI w/o CMG, Actual Pre-Trade Incremental Profit, Actual Incremental Profit w Fixed Trade Spend, Actual Net Revenue

Competitor

PromotionsYour

Promotions

BlueSky Category Activity Report- Visually track

where planned

and actual Events

occur over 52/53

week period.

- What tactics are

planned?

- Do competitors

run activity in

parallel?

- How profitable is

each Event?

What do we do now?

Evaluate Your Needs

What is your annual trade spend budget?

What is your company’s commitment to

improving trade spend ROI?

How much time is spent today evaluating

trade spend?

What is your coverage?

Start with a Roadmap

Start With a Roadmap Understand current methods

Reporting, Data gathering, Number of users

Experience of users, Consistency among teams on metrix

Total number of promotions, Annual trade spend

Historical data available?

Level of granularity for data (consumer units or cases)

Type of data available (plan, consumption, shipment, COGS)

Do all departments speak the same language (Category Management/Sales/Finance/IT)?

Do you speak the same language as your retail partners?

Current PPA metrics used today

How are they calculated

How are they sourced (ie. ERP, Nielsen, IRI, DW, etc.)

Reverse engineer metrics (disassemble and analyze components)

What is current coverage

“Gap Analysis” between current method and “best practices”

Evaluate IT infrastructure

DW, Databases supported, BI Tools, Environmental needs (Dev, Prod, etc)

Staff skills and ability to manage PPA application

Lay out steps and milestones to get to an integrated best practices solution

Expected timeframe, Level of difficulty, Resources needed

Expected ROI and payback period of application

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[email protected]

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Data & Analytics

TradeSmart Case Studies