How not to waste budget for a promo?
Let's talk about promo management. According to Nielsen, the share of promotional sales has already returned to the pre-covid values — above 50% in the food and non-food categories. While some manufacturers complain that the promotional activities are killing the brand, others are taking leadership in the channel and in the market.
The main problem of promo digitalization
Sales Force Automation (SFA) and Revenue Growth Management (RGM) solutions are involved in trade marketing management. As a rule, RGM is not a platform, but a custom set of products and programs.
RGM-suit is responsible for forecasting, planning and coordinating the promo.
SFA — for the implementation, informing the consumer, control of out-of-stocks and goods layout.
RGM-suit is responsible for forecasting, planning and coordinating the promo.
SFA — for the implementation, informing the consumer, control of out-of-stocks and goods layout.
Promo planning and execution processes are divided between RGM and SFA
According to the POI Institute, one of the main problems of promo digitalization is the lack of normal integration between RGM and SFA. Planning and implementation of TMA is performed in different environments, there are problems with data import / export, information is not always adequately translated into fields. As a result,
up to 60% of promotional activities are unprofitable. At the same time, the manufacturer cannot always figure out who to blame: RGM services, distributors or sales force. We decided to focus on this problem and found a solution.
How to connect RGM and SFA?
We have established interaction between the services responsible for launching and implementing TMA. Now the manufacturer can build a transparent trade marketing management system in non-chain retail, modern retail and e-com.
Integration:
SFA receives promotional activities data from RGM.
SFA receives promotional activities data from RGM.
Broadcasting:
SFA broadcasts promotions to the entire sales structure across all distribution channels.
SFA broadcasts promotions to the entire sales structure across all distribution channels.
Collecting facts:
SFA consolidates data on secondary sales and offtakes in a mode close to real time.
SFA consolidates data on secondary sales and offtakes in a mode close to real time.
Control and monitoring:
SFA monitors the dynamics of sales during the promotion and helps to evaluate the main results of trade marketing activities.
SFA monitors the dynamics of sales during the promotion and helps to evaluate the main results of trade marketing activities.
Analytics:
SFA transmits all promotional data to RGM for detailed analysis.
SFA transmits all promotional data to RGM for detailed analysis.
The stages of integration and analysis in different channels are similar, but the broadcast and collection of facts are different. This time we will talk about the features of traditional retail.
The stages of integration and analysis in different channels are similar, but the broadcast and collection of facts are different.
This time we will talk about the features of traditional retail.
Control of field services
When launching a promo in traditional retail, the manufacturer stimulates all levels of distribution. Information about the promotion is transmitted first to a distributor, then to a sales representative, and from him to a point of sale. The weak link in this chain is a sales representative. To sell a promo to a point, he must:
- Navigate through ongoing campaigns;
- Keep presentation materials at hand;
- Offer promotions that are suitable for this particular point;
- Tell the point of sale how to get a bonus (take two more packs and get a mug).
It's impossible to keep all the details in mind. Therefore, sales representatives often forget, do not have time or simply do not want to offer a promo. As a result, many promotional activities do not reach the market.
To solve this problem, we have added a promo assistant to the Technopeak/Agent mobile application. It contains the information on all promotional activities and suggests which mechanics will work at a particular point. Additionally, it will track how the point of sale fulfills the conditions of the promotion, and remind you that you need to check the yellow price tags.
A new level of distributor control
Shipments created on the basis of these orders are also transmitted to the system. This allows you to track the dynamics of the promotion and monitor its results in terms of volume, price and composition of shipments.
Shipments created on the basis of these orders are also transmitted to the system. This allows you to track the dynamics of the promotion and monitor its results in terms of volume, price and composition of shipments.
Conclusion:
The integration of the SFA system with the systems included in the manufacturer's RGM-suit allows you to effectively work with trade marketing activities, receive information from the fields in a mode close to real time, and fully control the sales chain.
Do you have any questions?
We are here to help you
Leave your contact information and we will contact you promptly.