Note: I produced this product demo overview for DemandTec, my employer, to help show off some cool capabilities for the Trade Planning & Optimization software service. The movie runs ~2.5 minutes and has a pretty cool audio overlay…so turn those speakers up!
Consumer products manufacturers are under pressure to drive more volume — and profitable volume — without increasing the trade promotion budget. Problem is, most trade promotions don’t deliver economic value for the manufacturer nor do they drive an increase in category performance for the retailer. Selling in a bad plan like this to the retail trade is tough at best.
What to do?
Isolate plans that drive profitable volume for you, the manufacturer, and also hit key category performance objectives for your retail customer. Sounds easy, but doing this requires a quantified understanding of category behavior — including every item in the category — so that you can simulate events before they occur and isolate the good ones from the bad ones. Predictive software from DemandTec and others do just this, and help customer-facing sales teams develop win-win trade promotion events and entire category plans.
Some of the biggest CPG companies are using capabilities like this today, paving the way for a step change in how the industry goes to market.