After listening to our customers in the FMCG (Fast Moving Consumer Goods) and Food industries it is clear that adequate support for promotion planning is often missing. To address this requirement we have spent a significant amount of time to develop the perfect solution for this planning challenge. The solution we can now offer our customers will enable them to:
- Easily plan promotions for the future by finding the correct pattern for each promotion. Each promotion usually goes through 4 phases in terms of sales impact: 1, Ramp up (sales impact ramps up). 2, Peak (sales impact is maximized).3, Ramp down (sales impact ramps down). 4, Decline (sales is lower than normal demand base line shortly after the promotion).
- Get good visibility of all promotions by responsible in a promotion calendar.
- Promotion planning which is an integrated part of your overall Sales & Operations Planning (S&OP). We don’t look at demand and promotion planning as an isolated event, but we can help you identify the most suited time windows to run promotions, i.e. identifying how we can optimally convert idle supply capacity to maximum revenue and profit by running promotions.
- Sophisticated logic to separate promotional impact on sales vs. demand base line, this is key so the forecasting engine can properly identify underlying sales trends and seasonality without mixing this up with promotional impact on sales.
- Get comprehensive support to accurately measure actual vs. estimated sales impact. Over time you will accumulate data and our visualization tools will enable you to gain an insight into the true sales impact of your promotions. This is very important to track to allow continuous improvement when planning new promotions.
- Analyze each promotion from a profitability point of view. Typically you lower the price to increase your sales. At the same time you spend money on advertising and commercials to market the promotion, the obvious question you want to answer is: Is this promotion profitable and what is the Return on Investment (ROI) ?
If you believe you need better support for demand planning and to plan your promotions we would be very interested in discussing this further with you, please contact [email protected].