How to Harness the Power of Trade Promotion Management (TPM) Software for CPG Companies
Unleash the power of trade promotion management software to revolutionize your trade promotions. Maximize profitability and drive success today.
Discover the secrets of trade promotion management with our comprehensive guide, covering all aspects to increase sales and profitability for your business.
Nowadays, finding a marketing approach that delivers immediate and impactful results is critical to survival. To thrive in today's competitive marketplace, companies need to leverage robust strategies and tools that optimize the efficiency and effectiveness of their trade promotions.
When it comes to improving trade promotion, Trade Promotion Management (TPM) provides that answer. TPM encompasses the comprehensive process and employment of software tools for planning, executing, and analyzing trade promotions. However, TPM can also be a complex process.
Before we continue, let's take a step back and look at trade promotion and how exactly TPM fits into the marketing mix.
Trade promotions are a key component of the overall marketing mix for nearly every brand in CPG. Trade promotions serve a dual purpose, both in helping to drive short-term demand and motivating retailers to showcase and sell more of a company’s products. Trade promotions are a component of revenue management, involving marketing campaigns and activities targeted at selling more to the final consumer in a push strategy through wholesalers and retailers.
On the other hand, traditional marketing can incorporate a range of strategies, including social media marketing, public relations, and advertising - all designed with a pull strategy by generating consumer demand.
TPM comprises a range of tasks that revolve around analyzing, budgeting, planning, and aligning a company's trade expenditures. The main aim is to increase sales and profitability while simultaneously improving the productivity of the sales and finance teams.
TPM involves a systematic process encompassing several stages, or components, each playing a vital role in the overall promotion performance and success.
Understanding and managing these components effectively can optimize trade promotions, leading to increased sales, improved profitability, and enhanced retailer relationships.
CPG companies spend billions of dollars on trade promotions each year, and unfortunately, many report that the ROI on most of this spend is unfavorable. However, TPM can help them improve the effectiveness of their trade promotions by ensuring that promotions are aligned with marketing goals, targeted with the right tactics and discounts, and that they are executed effectively.
Here are some of the benefits of TPM for Consumer Goods companies:
TPM is a vital tool for CPG companies that are looking to improve their sales and profitability.
...or are you caught in the cycle of planning and executing campaigns without clear insights and strategies?
CPGvision's TPM capabilities can help you:
Talk to our experts! We can help you transform your promotional strategies.
The finance department plays a critical role in the trade spend process by ensuring that expenditures are tracked, managed, and optimized for profitability. They are responsible for providing funding, keeping track of trade spending at granular levels, down to individual products and time periods, often on a weekly or monthly basis, accruing the right funds at the right time, and for reporting the financial performance of promotional spending.
Finance is increasingly involved in conducting return on investment (ROI) analyses and assessing the product portfolio mix.
To enable this, many companies employ TPM solutions, which provide detailed financial data at the account, SKU, and week levels. These systems allow for key analyses like post-promotion analysis, and important financial fundamentals like correctly accruing amounts to the general ledger.
However, the finance department's objective of optimizing profitability can sometimes conflict with the sales department's goal of driving volume. This misalignment needs to be addressed, as it can hamper the adoption of efficient trade planning tools that could improve profitability and efficiency.
The finance department is also concerned with ensuring that trade spending dollars are used efficiently, managing the deduction settlement process (including audit trail preservation), and securing visibility into future trade spending liabilities. They play a key role in ensuring that appropriate funds are accrued and the financial viability of promotional plans is analyzed.
There are a number of challenges that companies face when managing trade promotions. Fortunately, most of these obstacles are manageable with the appropriate TPM software.
These challenges include:
Whether or not you need TPM software depends on a number of factors, including the complexity and scale of your promotional activities, and the challenges you face in managing them.
TPM software can help you to:
Here are a few situations where implementing TPM software could be beneficial:
Remember, the decision to invest in TPM software should be based on a thorough assessment of your business needs and the potential ROI
CPGvision is the best-in-class fully connected and integrated TPM and Revenue Growth Management (RGM) solution suite for Consumer-Packaged Goods, built on the Salesforce platform. With the most advanced functionality in the industry, CPGvision equips you with real-life problem-solving applications for TPM, Trade Promotion Optimization (TPO), and RGM.
With a Trade Promotion Management software like CPGvision you'll be able to:
There are TPM capabilities inherent in the CPGvision platform that are life-changing for users who were used to spreadsheets.
Some of these "easy buttons" are:
1. Advanced Product Search - The search function takes advantage of the powerful capabilities that Salesforce has to offer:The clone button is the ultimate EZ button!
3. Mass Approvals- Mass Approvals provide the ability to check multiple promotions or settlements and approve them at once. Automated workflows and auto-settlements can provide further levels of efficiency.At CPGvision we utilize a “train the trainer” approach as well as live end-user training. Having internal experts participate in training efforts ensures a higher level of coverage and transference of internal SOPs (standard operating procedures that are specific to your business).
Two useful monitoring tools we use are:
As mentioned before, TPM is a complex process, but it can be a valuable tool for CPG companies that are looking to maximize sales and profitability.
By adopting CPGvision’s best-in-class TPM software suite, you can harness advanced functionality, real-life problem-solving, and a range of applications that will help drive your promotional success, and keep your customers coming back for more.
At CPGvision, we take pride in our commitment to your goals. Our dedicated team consists of CPG industry professionals who are fully equipped to support you with your TPM solution.
To learn more about how CPGvision can help you achieve successful TPM, get in touch with us today.
Unleash the power of trade promotion management software to revolutionize your trade promotions. Maximize profitability and drive success today.
Discover how accurate data modeling can significantly improve and revolutionize your trade promotion management and optimization strategies.
Discover what Trade Promotion Management (TPM) is and why it's a game-changer in the consumer goods industry. Learn how to drive sales and...
Regardless of where you are in your RGM journey, CPGvision equips you with the solutions you need to optimize your revenue growth.
Start building historical data and make accurate promotion predictions, at the right time. We’d love to share our VISION with you as we continue to expand our RGM suite!