Description
A comprehensive trade management process facilitates the alignment of account teams, trade marketing, finance and supply chain stakeholders. Without an integrated process there is a disconnect cross the Value Chain consisting of sales, marketing, trade marketing, finance and operations which leads to missed opportunities, poor performance of promotions and too much / too little inventory in the channels to meet category and brand objectives.
!"#$%$&$'( *+,-. / 01+2- 3,+''$'(
!"#$%"&$'( *"+ ,&-.$/$"'/0 $' 1-2&
!"#$% '(")*
An Cracle WhlLe Þaper
november 2014
CpLlmlzlng Sales & 1rade Þlannlng
Þage 3
!"!#$%&'! )'!*'&!+ , %-! &.%!/*0%!1 230..&./ #-033!./!
Pere ls some new news - mosL Consumer Coods (CC) companles are noL able Lo ldenLlfy Lhe
efflclency of Lhe 2
nd
largesL llne on Lhelr Þ&L. lurLher, Lhese same companles are noL able Lo rellably
forecasL Lhe volume of base and lncremenLal Lo make declslons on whaL producL Lhey need, when
Lhey need lL and where Lhey need lL. Mllllons of dollars are spenL Lo obLaln syndlcaLed daLa LhaL Lells
Lhem whaL execuLed aL Lhe polnL of reLall, spend mllllons on reLall execuLlon capLure yeL sLlll aren'L
able Lo evaluaLe pre and posL promoLlon analysls - average ls 3 Lo 7° of promoLlons run. hope you
are looklng aL Lhe rlghL 3 Lo 7°. And as many of you have launched ways Lo ºcapLure Lhe mlnds of Lhe
consumer", you sLlll don'L lnLegraLe LhaL Lo your overall and [olnL buslness plans!
As you wlll see from Lhe ÞCl - CarLner research here aL Lhe conference - #1 and #2 deslred
capablllLles are lmprove lorecasL Accuracy and AnalyLlcally urlve Lhe 8uslness ?L1 Lhe proflclency you
sLaLed was LCW.
Cracle's uemanLra ÞredlcLlve 1rade Þlannlng and ManagemenL soluLlon provldes Lhls capablllLy for
buslnesses Lo succeed ln consumer-orlenLed markeLs - whlch ls Lo become more demand-drlven wlLh
vlslblllLy and Lransparency lnLernally and Lo your cusLomers.
• Can you sense Lhe demand aL Lhe polnL of consumpLlon? AL reLall or onllne?
• Are you able Lo accuraLely shape / forecasL LhaL demand vla your promoLlons, prlclng acLlons,
channel sales lncenLlves, Sku raLlonallzaLlon and reLall assorLmenL plannlng?
• uo you know when caLegory / geography / channel Lrends are effecLlvely respondlng Lo Lrade
and markeLlng?
• Are you consLanLly baLLllng wlLh supply or lnaccuraLe sales forecasL pro[ecLlons resulLlng ln producL
ln Lhe wrong place, unproflLable sales and lefL wanLlng ln some locaLlons whlle oLhers are flooded
wlLh closeouL and oversLock offers?
4!5% 2*0#%&#!5 &. 503!5 0.1 %*01! 230..&./
A comprehenslve Lrade managemenL process faclllLaLes Lhe allgnmenL of accounL Leams, Lrade
markeLlng, flnance and supply chaln sLakeholders. WlLhouL an lnLegraLed process Lhere ls a
dlsconnecL cross Lhe value Chaln conslsLlng of sales, markeLlng, Lrade markeLlng, flnance and
operaLlons whlch leads Lo mlssed opporLunlLles, poor performance of promoLlons and Loo much / Loo
llLLle lnvenLory ln Lhe channels Lo meeL caLegory and brand ob[ecLlves. 1he accounL managers may
plan a campalgn wlLh a cerLaln seL of expecLaLlons for volume and margln buL Lhey may end up belng
lneffecLlve and a poor use of Lrade funds. ln addlLlon, lncremenLal volume due Lo evenLs may noL be
CpLlmlzlng Sales & 1rade Þlannlng
Þage 4
communlcaLed Lo supply chaln LhaL may place lnsufflclenL or excess lnvenLory lnLo dlsLrlbuLlon
resulLlng ln a wasLe of promoLlonal spend.
SLarLlng wlLh speclflc LargeLs (revenue & margln) wlLh a Lop-down buslness plan by caLegory / brand /
channel wlLh speclflc goals for volume and markeL share ls needed. A boLLom-up LoLal volume
forecasL whlch lncludes Lhe lmpacL of promoLlons and Lhe resulLlng Lrade budgeL LhaL ls requlred ls
allgned wlLh Lhe Lop-down LargeLs. ueLermlnlng and resolvlng gaps on an on-golng basls beLween Lop-
down and boLLom-up plans aL Lhe channel / caLegory / brand levels, ls a key besL pracLlce LhaL ensures
allgnmenL across Lhe company.
1he compleLlon of Lhls budgeLlng process drlves a conLlnuous cycle wlLh accounL plannlng Leams
developlng Lrade promoLlon plans Lo achleve ob[ecLlves. 1yplcally, Lhls would lnclude Lhree scenarlos
- a llkely scenarlo, an opLlmlsLlc scenarlo and a pesslmlsLlc scenarlo. 1hese scenarlos wlll lncorporaLe
changes ln dlsLrlbuLlon, new producLs, new markeL acLlvlLles, changes ln promoLlonal sLraLegles (e.g.
lncrease ln promo depLh vs. lncrease ln promo frequency). uurlng Lhls process, a sale allocaLes Lhe
funds and checkbook Lo cusLomer accounLs wlLhln a conslsLenL process of Lrade spendlng approvals.
AnalyLlcs are operaLlonallzed and lnLegraLed lnLo Lhe process wlLhln Lhe same sysLem for Lop-down
plannlng, fund plannlng and allocaLlon and scenarlo plannlng. 1he promoLlon calendar ls analyzed
uslng predlcLlve modellng and opLlmlzaLlon Lo yleld a base and lncremenLal volume, promoLlon
effecLlveness, cross-porLfollo and cross-accounL effecLs. 1hls ls where Lrade promoLlon plannlng
meeLs predlcLlve modellng and opLlmlzaLlon so LhaL Lhe neL resulL ls proflLable revenue growLh for Lhe
Consumer Coods manufacLurer.
CpLlmlzlng Sales & 1rade Þlannlng
Þage 3
1he planned promoLlons are approved and commlLLed and Lhen go lnLo execuLlon and Lhe seLLlemenL
process. Pere posL-promoLlon analysls lnforms Lhe planners, lf whaL was anLlclpaLed durlng Lhe
plannlng phase acLually happened and lf lL dld noL, Lhen whaL Lhe rooL causes were for Lhe devlaLlon.
Analysls of Lhe Lop and boLLom performlng evenLs are Lhen lncorporaLed lnLo fuLure promoLlon
calendars, and ls a basls for conLlnuous lmprovemenL for promoLlon sLraLegles.
)*0#3! '03$! #-0&. 230..&./ , '&5&4&3&%6 0.1 %*0.520*!.#6
1hese besL pracLlces cannoL be lnsLlLuLlonallzed wlLhouL a robusL and lnLegraLed predlcLlve Lrade
plannlng and opLlmlzaLlon soluLlon, whlch Cracle offers Lhrough lLs value Chaln Þlannlng sulLe of
appllcaLlons.
uemand Slgnal ManagemenL - lrom an LnLerprlse vlew
1he key here ls LhaL alLhough Lhere are several soluLlons ouL Lhere Loday - Cracle unlquely offers Lhe
ablllLy Lo manage every reLaller, all dlsLrlbuLors, and every exLernal daLa source ln a slngle enLerprlse
soluLlon. 8eLaller polnL of sale, dlsLrlbuLor spln daLa, syndlcaLed sources and channel shlpmenLs are
cleansed, mapped and harmonlzed lnLo a slngle and comprehenslve daLa model. Cracle uemanLra
uses Lhls daLa Lo generaLe forecasLs across each sLream of daLa - ConsumpLlon forecasL, uepleLlon /
SÞln forecasL and CompeLlLlve ÞroducL forecasL Lo evaluaLe Lhe cross effecLs ln Lhe caLegory aL Lhe
reLall markeL.
WlLh Lhls vlslblllLy and Lhe robusL reporLlng manufacLurers are able Lo look across Lhe enLlre Channel,
CaLegory by MarkeL and 8eLaller as well. Lhlnk of LhaL. all lnslghLs ln a slngle vlew ellmlnaLlng
ºchaslng down Lhe daLa Lo creaLe vlews", and leveraglng excepLlon reporLlng and lnslghLs on whaL ls
worklng, gaps ln lnvenLory and how well new ÞroducL launches are reacLlng by markeL. Clvlng
caLegory, brand and accounL Leams Lhe vlslblllLy Lo lncrease revenue and brand equlLy vla more
effecLlve caLegory and brand growLh sLraLegles drlves
• lncreased revenue / reduce losL sales due Lo poor sLore / Sku level vlslblllLy
• Lasy access Lo lnformaLlon Lo drlve lnslghLful reLaller Lop-Lo-Lop meeLlngs
• Clear vlew of demand Lo have producL ready whlch lmproves servlce levels
• lull vlslblllLy by execuLlve managemenL Lo caLegory, operaLlonal and flnanclal measures
• Lasy Lracklng of how new producL launches are succeedlng or noL ln all markeLs
CpLlmlzlng Sales & 1rade Þlannlng
Þage 6
lorecasLlng - 1ransparency of uemand Across Lhe value Chaln
Cracle uemanLra's excluslve forecasLlng capablllLles lncorporaLes exLernal daLa lnslghLs uslng mulLlple
causal lmpacLs lncludlng prlce changes, promoLlon LacLlcs, daLe of Lhe promoLlons aL reLall, weaLher
effecLs, markeLlng and macro-economlc facLors. CeneraLlng a weekly recasL of markeLlng coefflclenLs
by Sku and plan-Lo cusLomer provldes a hlghly accuraLe basellne and lncremenLal forecasL of
consumer and reLall promoLlonal evenLs. 1hls weekly vlslblllLy drlves a compleLely dlfferenL approach
Lo S&CÞ as Lhe value Chaln now has vlslblllLy Lo whaL ls drlvlng volumes, Lhe proflL of Lhose
promoLlons, Lo ensure producL ls avallable. Lhus reduclng Llme and efforL across Lhe organlzaLlon and
a proflLable response Lo promoLlon and prlclng acLlons.
AnalyLlcs and Modellng
ÞromoLlon planners now have lnslghL lnLo Lhe effecLlveness of dlfferenL promoLlon levers avallable Lo
Lhem by leveraglng daLa drlven analyLlcal models. AccounL managers have Lhe ablllLy Lo run whaL-lf
slmulaLlons Lo undersLand shlpmenLs, dlsLrlbuLor / wholesaler acLlvlLy and how well Lhe promoLlon
wlll operaLe aL reLall vla consumpLlon effecLs and compeLlLlve reacLlon:
• Whlch dellvers a beLLer resulL, lnvesLlng ln a dlsplay or ln an adverLlslng feaLure?
• WhaL lf l decrease Lhe prlce durlng Lhe promoLlon by 18 percenL when l have never done Lhls
before - whaL wlll Lhe lmpacL be on lncremenLal llfL and revenue?
• Pow much do my promoLlons cannlballze my cusLomer's prlvaLe-label producLs?
• Should l enLer lnLo an agreemenL Lo decrease Lhe base prlce of a producL, or would a ºhl-lo"
promoLlon sLraLegy be beLLer?
• WhaL ls Lhe 8Cl of a promoLlon boLh from my perspecLlve and from a reLaller's perspecLlve?
ÞredlcLlve lnslghLs - 8ase and º1rue neL LlfL"
Looklng below - vlslblllLy Lo an accuraLe vlew of base and llfL and furLher lnslghL Lo Lhe drlvers wlLhln
llfL - boLh for you Lhe manufacLurer as well as Lhe reLaller vlew of Lhe caLegory - changes Lhe game.
you now undersLand ºwhaL LhaL spend lmpacLs" before you commlL lL. 1hose same lnslghLs are
avallable afLer Lhe facL, ldenLlfylng Lhe ºdue Lo" when a promoLlon does noL execuLe as expecLed. uld
Lhe reLaller run Lhe promoLlon when you wanLed lL? uld Lhey run Lhe shelf prlce polnL? uld Lhey run
Lhe LacLlc l pald for (plannlng a leaLure and 2 week dlsplay only Lo flnd ouL Lhe reLaller ran Lhe Ad and
a 2 week 1Þ8 noL resulLlng ln anyLhlng close Lo whaL you expecLed). nCW you wlll be able Lo see LhaL!
100° vlslblllLy lnLo Þre and ÞosL - sure beaLs Lhe lndusLry average of 3 Lo 7°.
CpLlmlzlng Sales & 1rade Þlannlng
Þage 7
lmaglne Lhese lnslghLs aL your flngerLlps - ShlpmenLs, uepleLlons from Lhe ulsLrlbuLor and
ConsumpLlon - lAC1 8ASLu lnslghLs glve you power Lo make declslons!
ls my brand growlng? WhaL compeLlLlve brand swlLchlng
am l drlvlng? Am l cannlballzlng my own producLs? My
compeLlLors? Am l [usL movlng volume from 1 week Lo Lhe
oLher? Cr [usL allowlng everyone Lo sLock up? WhaL ls my
value Lo Lhe CaLegory?
CpLlmlzlng Sales & 1rade Þlannlng
Þage 8
Scenarlo Þlannlng
WhaL-lf scenarlo plannlng enables Lhe evaluaLlon of mulLlple opLlons for slngle and groups of
promoLlons ln order Lo undersLand and selecL Lhose LhaL achleve caLegory and accounL goals.
WheLher lL ls Lhe Lrade markeLlng analysLs or lndlvldual accounL Leams, Lhey can model alLernaLlve
scenarlos wlLh groups of promoLlons and galn lnslghL lnLo Lhe lmpacL of varylng Lhe depLh of dlscounL,
frequency of promoLlons, duraLlon of promoLlons and seL of LacLlcs. 1he ouLcomes of Lhese scenarlo
slmulaLlons can gulde accounL Leams Lo Lhe mosL opLlmal promoLlon sLraLegles LhaL meeL caLegory,
brand and accounL buslness ob[ecLlves. Summary vlews of Lhe lmpacL agalnsL key meLrlcs allow you Lo
qulckly and easlly come up wlLh Lhe spend opLlons LhaL meeL Lhose meLrlcs. whlle lncorporaLlng
markeLlng effecLs across LradlLlonal, dlglLal, and shopper markeLlng lmpacLs.
Laslly evaluaLe Lhe ºeffecLs" of mulLlple scenarlos.whaL lf l
dld. and a qulck undersLandlng Lo Lhe key meLrlcs. lmaglne
Lhls lnslghL - my plan nexL quarLer compared Lo whaL Lhe
reLaller wanLs - whaL ls Lhe besL wln-wln value?
CpLlmlzlng Sales & 1rade Þlannlng
Þage 9
Achlevlng 1rue CpLlmlzaLlon of Þlans Lo Coals and Cb[ecLlves
up Lo Lhls polnL, we have focused on Lhe ablllLy Lo easlly and qulckly analyze Lhe effecL of promoLlon
opLlons - slngle or groups. Whlle Lhls ls an lnvaluable sLep change LhaL has drlven slgnlflcanL 8Cl for
our cusLomers - reduce unproflLable spend, drlve more volume wlLh less dollars and flndlng beLLer
ways Lo achleve your goals, noLhlng beaLs an CpLlmlzed calendar by Channel, CaLegory, 8rand and
8eLaller. Cracle uemanLra's CpLlmlzaLlon capablllLles sLands alone ln Lhe ablllLy Lo provldes a seL of
ob[ecLlves for a seL Llme (year, quarLer, eLc.) and based on your speclflc spend and goal guardralls
(8Cl, budgeL, frequency of LacLlcs), generaLe a recommended seL of opLlmal promoLlons and show
Lhem on your calendar. Compare Lhe recommended ºopLlmlzed seL of evenLs" agalnsL Lhe exlsLlng
calendars LhaL have been developed and seek changes Lo exlsLlng promoLlons and neL new
recommendaLlons.
4!.!7&%5 7)* #).5$8!* /))15 #)820.&!5
Cracle's uemanLra ÞredlcLlve Sales & 1rade Þlannlng, enables any slze CC company Lo opLlmlze
promoLlonal spend and effecLlvely plan and execuLe sLraLegles LhaL proflLably grow Lhelr caLegory
share.
• AccounL plans generaLed wlLh base volume, revenue, & marglns across all demand sLreams -
ShlpmenLs, ulsLrlbuLor / Wholesaler depleLlons and ConsumpLlon
• LvenL-based predlcLlve analysls Lo pro[ecL promoLlonal llfL - 1 promoLlon or mulLlple scenarlos
• ºneL llfL" facLorlng cannlballzaLlon, panLry loadlng, pre / posL volume, forward buylng and accounL
swlLchlng on ?Cu8 producL porLfollo as well as ?Cu8 compeLlLor
• 8ecommended generaLed CpLlmlzed Calendar uslng your guldellnes, goals and ob[ecLlves
8elng provlded an CpLlmlzed calendar wlLh facL based
recommendaLlons provldes key changes Lo proflL and
volume plcLures.maklng beLLer declslons and ºflndlng
Lhose nuggeLs" LhaL drlve value!
CpLlmlzlng Sales & 1rade Þlannlng
Þage 10
#).#3$5&). , !77&#&!.#6 )7 52!.1 , '&5&4&3&%6 0#*)55
%-! '03$! #-0&.
We ALL know LhaL we need Lo make LhaL second largesL llne on our Þ&L more efflclenL. Lhere are
100's of whlLe papers ouL Lhere Lelllng you LhaL. Cur cusLomers are leveraglng predlcLlve Lrade
plannlng and opLlmlzaLlon Lo lmprove boLh Lhelr efflclency as well as Lhelr cusLomers' performance.
LllmlnaLlng wasLeful spend, Laklng advanLage of new ways Lo wln, and drlvlng Lhose lnslghLs back
Lhrough Lhe value Chaln allows lnslghL Lo whaL needs Lo be produced, when lL ls needed and where lL
wlll be consumed. WlLh Lhe lmpacL LhaL promoLlon spendlng can exerL on a company's performance,
Lhere ls a very real need for predlcLablllLy. ln order Lo compeLe, consumer producLs organlzaLlons
need Lhese lnslghLs / facL drlven plans Lo drlve proflLs whlle galnlng markeL share. lf you can provlde
Lhese lnslghLs Lo your 8eLallers on Lhe CaLegory effecLs you wlll absoluLely puL yourself ln Lhe
drlver's seaL.
Þlease conLacL us Lo learn how you can sLarL your sLep change Loday Lo LfflclenL Spend, CpLlmlzed
Calendars, wlLh vlslblllLy and 1ransparency across your value Chaln for you and your CusLomers!
'9:;;?@9 - vlkram.murLhl[oracle.com
39AB< 2CCD - Llnda.peel[oracle.com
www. oracle. com
CopyrlghL © 2014, Cracle and/or lLs afflllaLes. All rlghLs reserved.
1hls documenL ls provlded for lnformaLlon purposes only and Lhe
conLenLs hereof are sub[ecL Lo change wlLhouL noLlce. 1hls
documenL ls noL warranLed Lo be error-free, nor sub[ecL Lo any
oLher warranLles or condlLlons, wheLher expressed orally or
lmplled ln law, lncludlng lmplled warranLles and condlLlons of
merchanLablllLy or flLness for a parLlcular purpose. We speclflcally
dlsclalm any llablllLy wlLh respecL Lo Lhls documenL and no
conLracLual obllgaLlons are formed elLher dlrecLly or lndlrecLly by
Lhls documenL. 1hls documenL may noL be reproduced or
LransmlLLed ln any form or by any means, elecLronlc or
mechanlcal, for any purpose, wlLhouL our prlor wrlLLen permlsslon.
Cracle and !ava are reglsLered Lrademarks of Cracle and/or lLs
afflllaLes. CLher names may be Lrademarks of Lhelr respecLlve
owners.
AMu, CpLeron, Lhe AMu logo, and Lhe AMu CpLeron logo are
Lrademarks or reglsLered Lrademarks of Advanced Mlcro uevlces. lnLel
and lnLel xeon are Lrademarks or reglsLered Lrademarks of lnLel
CorporaLlon. All SÞA8C Lrademarks are used under llcense and are
Lrademarks or reglsLered Lrademarks of SÞA8C lnLernaLlonal, lnc. unlx
ls a reglsLered Lrademark llcensed Lhrough x/Cpen Company, LLd. 1212
doc_526416263.pdf
A comprehensive trade management process facilitates the alignment of account teams, trade marketing, finance and supply chain stakeholders. Without an integrated process there is a disconnect cross the Value Chain consisting of sales, marketing, trade marketing, finance and operations which leads to missed opportunities, poor performance of promotions and too much / too little inventory in the channels to meet category and brand objectives.
!"#$%$&$'( *+,-. / 01+2- 3,+''$'(
!"#$%"&$'( *"+ ,&-.$/$"'/0 $' 1-2&
!"#$% '(")*
An Cracle WhlLe Þaper
november 2014
CpLlmlzlng Sales & 1rade Þlannlng
Þage 3
!"!#$%&'! )'!*'&!+ , %-! &.%!/*0%!1 230..&./ #-033!./!
Pere ls some new news - mosL Consumer Coods (CC) companles are noL able Lo ldenLlfy Lhe
efflclency of Lhe 2
nd
largesL llne on Lhelr Þ&L. lurLher, Lhese same companles are noL able Lo rellably
forecasL Lhe volume of base and lncremenLal Lo make declslons on whaL producL Lhey need, when
Lhey need lL and where Lhey need lL. Mllllons of dollars are spenL Lo obLaln syndlcaLed daLa LhaL Lells
Lhem whaL execuLed aL Lhe polnL of reLall, spend mllllons on reLall execuLlon capLure yeL sLlll aren'L
able Lo evaluaLe pre and posL promoLlon analysls - average ls 3 Lo 7° of promoLlons run. hope you
are looklng aL Lhe rlghL 3 Lo 7°. And as many of you have launched ways Lo ºcapLure Lhe mlnds of Lhe
consumer", you sLlll don'L lnLegraLe LhaL Lo your overall and [olnL buslness plans!
As you wlll see from Lhe ÞCl - CarLner research here aL Lhe conference - #1 and #2 deslred
capablllLles are lmprove lorecasL Accuracy and AnalyLlcally urlve Lhe 8uslness ?L1 Lhe proflclency you
sLaLed was LCW.
Cracle's uemanLra ÞredlcLlve 1rade Þlannlng and ManagemenL soluLlon provldes Lhls capablllLy for
buslnesses Lo succeed ln consumer-orlenLed markeLs - whlch ls Lo become more demand-drlven wlLh
vlslblllLy and Lransparency lnLernally and Lo your cusLomers.
• Can you sense Lhe demand aL Lhe polnL of consumpLlon? AL reLall or onllne?
• Are you able Lo accuraLely shape / forecasL LhaL demand vla your promoLlons, prlclng acLlons,
channel sales lncenLlves, Sku raLlonallzaLlon and reLall assorLmenL plannlng?
• uo you know when caLegory / geography / channel Lrends are effecLlvely respondlng Lo Lrade
and markeLlng?
• Are you consLanLly baLLllng wlLh supply or lnaccuraLe sales forecasL pro[ecLlons resulLlng ln producL
ln Lhe wrong place, unproflLable sales and lefL wanLlng ln some locaLlons whlle oLhers are flooded
wlLh closeouL and oversLock offers?
4!5% 2*0#%&#!5 &. 503!5 0.1 %*01! 230..&./
A comprehenslve Lrade managemenL process faclllLaLes Lhe allgnmenL of accounL Leams, Lrade
markeLlng, flnance and supply chaln sLakeholders. WlLhouL an lnLegraLed process Lhere ls a
dlsconnecL cross Lhe value Chaln conslsLlng of sales, markeLlng, Lrade markeLlng, flnance and
operaLlons whlch leads Lo mlssed opporLunlLles, poor performance of promoLlons and Loo much / Loo
llLLle lnvenLory ln Lhe channels Lo meeL caLegory and brand ob[ecLlves. 1he accounL managers may
plan a campalgn wlLh a cerLaln seL of expecLaLlons for volume and margln buL Lhey may end up belng
lneffecLlve and a poor use of Lrade funds. ln addlLlon, lncremenLal volume due Lo evenLs may noL be
CpLlmlzlng Sales & 1rade Þlannlng
Þage 4
communlcaLed Lo supply chaln LhaL may place lnsufflclenL or excess lnvenLory lnLo dlsLrlbuLlon
resulLlng ln a wasLe of promoLlonal spend.
SLarLlng wlLh speclflc LargeLs (revenue & margln) wlLh a Lop-down buslness plan by caLegory / brand /
channel wlLh speclflc goals for volume and markeL share ls needed. A boLLom-up LoLal volume
forecasL whlch lncludes Lhe lmpacL of promoLlons and Lhe resulLlng Lrade budgeL LhaL ls requlred ls
allgned wlLh Lhe Lop-down LargeLs. ueLermlnlng and resolvlng gaps on an on-golng basls beLween Lop-
down and boLLom-up plans aL Lhe channel / caLegory / brand levels, ls a key besL pracLlce LhaL ensures
allgnmenL across Lhe company.
1he compleLlon of Lhls budgeLlng process drlves a conLlnuous cycle wlLh accounL plannlng Leams
developlng Lrade promoLlon plans Lo achleve ob[ecLlves. 1yplcally, Lhls would lnclude Lhree scenarlos
- a llkely scenarlo, an opLlmlsLlc scenarlo and a pesslmlsLlc scenarlo. 1hese scenarlos wlll lncorporaLe
changes ln dlsLrlbuLlon, new producLs, new markeL acLlvlLles, changes ln promoLlonal sLraLegles (e.g.
lncrease ln promo depLh vs. lncrease ln promo frequency). uurlng Lhls process, a sale allocaLes Lhe
funds and checkbook Lo cusLomer accounLs wlLhln a conslsLenL process of Lrade spendlng approvals.
AnalyLlcs are operaLlonallzed and lnLegraLed lnLo Lhe process wlLhln Lhe same sysLem for Lop-down
plannlng, fund plannlng and allocaLlon and scenarlo plannlng. 1he promoLlon calendar ls analyzed
uslng predlcLlve modellng and opLlmlzaLlon Lo yleld a base and lncremenLal volume, promoLlon
effecLlveness, cross-porLfollo and cross-accounL effecLs. 1hls ls where Lrade promoLlon plannlng
meeLs predlcLlve modellng and opLlmlzaLlon so LhaL Lhe neL resulL ls proflLable revenue growLh for Lhe
Consumer Coods manufacLurer.
CpLlmlzlng Sales & 1rade Þlannlng
Þage 3
1he planned promoLlons are approved and commlLLed and Lhen go lnLo execuLlon and Lhe seLLlemenL
process. Pere posL-promoLlon analysls lnforms Lhe planners, lf whaL was anLlclpaLed durlng Lhe
plannlng phase acLually happened and lf lL dld noL, Lhen whaL Lhe rooL causes were for Lhe devlaLlon.
Analysls of Lhe Lop and boLLom performlng evenLs are Lhen lncorporaLed lnLo fuLure promoLlon
calendars, and ls a basls for conLlnuous lmprovemenL for promoLlon sLraLegles.
)*0#3! '03$! #-0&. 230..&./ , '&5&4&3&%6 0.1 %*0.520*!.#6
1hese besL pracLlces cannoL be lnsLlLuLlonallzed wlLhouL a robusL and lnLegraLed predlcLlve Lrade
plannlng and opLlmlzaLlon soluLlon, whlch Cracle offers Lhrough lLs value Chaln Þlannlng sulLe of
appllcaLlons.
uemand Slgnal ManagemenL - lrom an LnLerprlse vlew
1he key here ls LhaL alLhough Lhere are several soluLlons ouL Lhere Loday - Cracle unlquely offers Lhe
ablllLy Lo manage every reLaller, all dlsLrlbuLors, and every exLernal daLa source ln a slngle enLerprlse
soluLlon. 8eLaller polnL of sale, dlsLrlbuLor spln daLa, syndlcaLed sources and channel shlpmenLs are
cleansed, mapped and harmonlzed lnLo a slngle and comprehenslve daLa model. Cracle uemanLra
uses Lhls daLa Lo generaLe forecasLs across each sLream of daLa - ConsumpLlon forecasL, uepleLlon /
SÞln forecasL and CompeLlLlve ÞroducL forecasL Lo evaluaLe Lhe cross effecLs ln Lhe caLegory aL Lhe
reLall markeL.
WlLh Lhls vlslblllLy and Lhe robusL reporLlng manufacLurers are able Lo look across Lhe enLlre Channel,
CaLegory by MarkeL and 8eLaller as well. Lhlnk of LhaL. all lnslghLs ln a slngle vlew ellmlnaLlng
ºchaslng down Lhe daLa Lo creaLe vlews", and leveraglng excepLlon reporLlng and lnslghLs on whaL ls
worklng, gaps ln lnvenLory and how well new ÞroducL launches are reacLlng by markeL. Clvlng
caLegory, brand and accounL Leams Lhe vlslblllLy Lo lncrease revenue and brand equlLy vla more
effecLlve caLegory and brand growLh sLraLegles drlves
• lncreased revenue / reduce losL sales due Lo poor sLore / Sku level vlslblllLy
• Lasy access Lo lnformaLlon Lo drlve lnslghLful reLaller Lop-Lo-Lop meeLlngs
• Clear vlew of demand Lo have producL ready whlch lmproves servlce levels
• lull vlslblllLy by execuLlve managemenL Lo caLegory, operaLlonal and flnanclal measures
• Lasy Lracklng of how new producL launches are succeedlng or noL ln all markeLs
CpLlmlzlng Sales & 1rade Þlannlng
Þage 6
lorecasLlng - 1ransparency of uemand Across Lhe value Chaln
Cracle uemanLra's excluslve forecasLlng capablllLles lncorporaLes exLernal daLa lnslghLs uslng mulLlple
causal lmpacLs lncludlng prlce changes, promoLlon LacLlcs, daLe of Lhe promoLlons aL reLall, weaLher
effecLs, markeLlng and macro-economlc facLors. CeneraLlng a weekly recasL of markeLlng coefflclenLs
by Sku and plan-Lo cusLomer provldes a hlghly accuraLe basellne and lncremenLal forecasL of
consumer and reLall promoLlonal evenLs. 1hls weekly vlslblllLy drlves a compleLely dlfferenL approach
Lo S&CÞ as Lhe value Chaln now has vlslblllLy Lo whaL ls drlvlng volumes, Lhe proflL of Lhose
promoLlons, Lo ensure producL ls avallable. Lhus reduclng Llme and efforL across Lhe organlzaLlon and
a proflLable response Lo promoLlon and prlclng acLlons.
AnalyLlcs and Modellng
ÞromoLlon planners now have lnslghL lnLo Lhe effecLlveness of dlfferenL promoLlon levers avallable Lo
Lhem by leveraglng daLa drlven analyLlcal models. AccounL managers have Lhe ablllLy Lo run whaL-lf
slmulaLlons Lo undersLand shlpmenLs, dlsLrlbuLor / wholesaler acLlvlLy and how well Lhe promoLlon
wlll operaLe aL reLall vla consumpLlon effecLs and compeLlLlve reacLlon:
• Whlch dellvers a beLLer resulL, lnvesLlng ln a dlsplay or ln an adverLlslng feaLure?
• WhaL lf l decrease Lhe prlce durlng Lhe promoLlon by 18 percenL when l have never done Lhls
before - whaL wlll Lhe lmpacL be on lncremenLal llfL and revenue?
• Pow much do my promoLlons cannlballze my cusLomer's prlvaLe-label producLs?
• Should l enLer lnLo an agreemenL Lo decrease Lhe base prlce of a producL, or would a ºhl-lo"
promoLlon sLraLegy be beLLer?
• WhaL ls Lhe 8Cl of a promoLlon boLh from my perspecLlve and from a reLaller's perspecLlve?
ÞredlcLlve lnslghLs - 8ase and º1rue neL LlfL"
Looklng below - vlslblllLy Lo an accuraLe vlew of base and llfL and furLher lnslghL Lo Lhe drlvers wlLhln
llfL - boLh for you Lhe manufacLurer as well as Lhe reLaller vlew of Lhe caLegory - changes Lhe game.
you now undersLand ºwhaL LhaL spend lmpacLs" before you commlL lL. 1hose same lnslghLs are
avallable afLer Lhe facL, ldenLlfylng Lhe ºdue Lo" when a promoLlon does noL execuLe as expecLed. uld
Lhe reLaller run Lhe promoLlon when you wanLed lL? uld Lhey run Lhe shelf prlce polnL? uld Lhey run
Lhe LacLlc l pald for (plannlng a leaLure and 2 week dlsplay only Lo flnd ouL Lhe reLaller ran Lhe Ad and
a 2 week 1Þ8 noL resulLlng ln anyLhlng close Lo whaL you expecLed). nCW you wlll be able Lo see LhaL!
100° vlslblllLy lnLo Þre and ÞosL - sure beaLs Lhe lndusLry average of 3 Lo 7°.
CpLlmlzlng Sales & 1rade Þlannlng
Þage 7
lmaglne Lhese lnslghLs aL your flngerLlps - ShlpmenLs, uepleLlons from Lhe ulsLrlbuLor and
ConsumpLlon - lAC1 8ASLu lnslghLs glve you power Lo make declslons!
ls my brand growlng? WhaL compeLlLlve brand swlLchlng
am l drlvlng? Am l cannlballzlng my own producLs? My
compeLlLors? Am l [usL movlng volume from 1 week Lo Lhe
oLher? Cr [usL allowlng everyone Lo sLock up? WhaL ls my
value Lo Lhe CaLegory?
CpLlmlzlng Sales & 1rade Þlannlng
Þage 8
Scenarlo Þlannlng
WhaL-lf scenarlo plannlng enables Lhe evaluaLlon of mulLlple opLlons for slngle and groups of
promoLlons ln order Lo undersLand and selecL Lhose LhaL achleve caLegory and accounL goals.
WheLher lL ls Lhe Lrade markeLlng analysLs or lndlvldual accounL Leams, Lhey can model alLernaLlve
scenarlos wlLh groups of promoLlons and galn lnslghL lnLo Lhe lmpacL of varylng Lhe depLh of dlscounL,
frequency of promoLlons, duraLlon of promoLlons and seL of LacLlcs. 1he ouLcomes of Lhese scenarlo
slmulaLlons can gulde accounL Leams Lo Lhe mosL opLlmal promoLlon sLraLegles LhaL meeL caLegory,
brand and accounL buslness ob[ecLlves. Summary vlews of Lhe lmpacL agalnsL key meLrlcs allow you Lo
qulckly and easlly come up wlLh Lhe spend opLlons LhaL meeL Lhose meLrlcs. whlle lncorporaLlng
markeLlng effecLs across LradlLlonal, dlglLal, and shopper markeLlng lmpacLs.
Laslly evaluaLe Lhe ºeffecLs" of mulLlple scenarlos.whaL lf l
dld. and a qulck undersLandlng Lo Lhe key meLrlcs. lmaglne
Lhls lnslghL - my plan nexL quarLer compared Lo whaL Lhe
reLaller wanLs - whaL ls Lhe besL wln-wln value?
CpLlmlzlng Sales & 1rade Þlannlng
Þage 9
Achlevlng 1rue CpLlmlzaLlon of Þlans Lo Coals and Cb[ecLlves
up Lo Lhls polnL, we have focused on Lhe ablllLy Lo easlly and qulckly analyze Lhe effecL of promoLlon
opLlons - slngle or groups. Whlle Lhls ls an lnvaluable sLep change LhaL has drlven slgnlflcanL 8Cl for
our cusLomers - reduce unproflLable spend, drlve more volume wlLh less dollars and flndlng beLLer
ways Lo achleve your goals, noLhlng beaLs an CpLlmlzed calendar by Channel, CaLegory, 8rand and
8eLaller. Cracle uemanLra's CpLlmlzaLlon capablllLles sLands alone ln Lhe ablllLy Lo provldes a seL of
ob[ecLlves for a seL Llme (year, quarLer, eLc.) and based on your speclflc spend and goal guardralls
(8Cl, budgeL, frequency of LacLlcs), generaLe a recommended seL of opLlmal promoLlons and show
Lhem on your calendar. Compare Lhe recommended ºopLlmlzed seL of evenLs" agalnsL Lhe exlsLlng
calendars LhaL have been developed and seek changes Lo exlsLlng promoLlons and neL new
recommendaLlons.
4!.!7&%5 7)* #).5$8!* /))15 #)820.&!5
Cracle's uemanLra ÞredlcLlve Sales & 1rade Þlannlng, enables any slze CC company Lo opLlmlze
promoLlonal spend and effecLlvely plan and execuLe sLraLegles LhaL proflLably grow Lhelr caLegory
share.
• AccounL plans generaLed wlLh base volume, revenue, & marglns across all demand sLreams -
ShlpmenLs, ulsLrlbuLor / Wholesaler depleLlons and ConsumpLlon
• LvenL-based predlcLlve analysls Lo pro[ecL promoLlonal llfL - 1 promoLlon or mulLlple scenarlos
• ºneL llfL" facLorlng cannlballzaLlon, panLry loadlng, pre / posL volume, forward buylng and accounL
swlLchlng on ?Cu8 producL porLfollo as well as ?Cu8 compeLlLor
• 8ecommended generaLed CpLlmlzed Calendar uslng your guldellnes, goals and ob[ecLlves
8elng provlded an CpLlmlzed calendar wlLh facL based
recommendaLlons provldes key changes Lo proflL and
volume plcLures.maklng beLLer declslons and ºflndlng
Lhose nuggeLs" LhaL drlve value!
CpLlmlzlng Sales & 1rade Þlannlng
Þage 10
#).#3$5&). , !77&#&!.#6 )7 52!.1 , '&5&4&3&%6 0#*)55
%-! '03$! #-0&.
We ALL know LhaL we need Lo make LhaL second largesL llne on our Þ&L more efflclenL. Lhere are
100's of whlLe papers ouL Lhere Lelllng you LhaL. Cur cusLomers are leveraglng predlcLlve Lrade
plannlng and opLlmlzaLlon Lo lmprove boLh Lhelr efflclency as well as Lhelr cusLomers' performance.
LllmlnaLlng wasLeful spend, Laklng advanLage of new ways Lo wln, and drlvlng Lhose lnslghLs back
Lhrough Lhe value Chaln allows lnslghL Lo whaL needs Lo be produced, when lL ls needed and where lL
wlll be consumed. WlLh Lhe lmpacL LhaL promoLlon spendlng can exerL on a company's performance,
Lhere ls a very real need for predlcLablllLy. ln order Lo compeLe, consumer producLs organlzaLlons
need Lhese lnslghLs / facL drlven plans Lo drlve proflLs whlle galnlng markeL share. lf you can provlde
Lhese lnslghLs Lo your 8eLallers on Lhe CaLegory effecLs you wlll absoluLely puL yourself ln Lhe
drlver's seaL.
Þlease conLacL us Lo learn how you can sLarL your sLep change Loday Lo LfflclenL Spend, CpLlmlzed
Calendars, wlLh vlslblllLy and 1ransparency across your value Chaln for you and your CusLomers!
'9:;;?@9 - vlkram.murLhl[oracle.com
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CopyrlghL © 2014, Cracle and/or lLs afflllaLes. All rlghLs reserved.
1hls documenL ls provlded for lnformaLlon purposes only and Lhe
conLenLs hereof are sub[ecL Lo change wlLhouL noLlce. 1hls
documenL ls noL warranLed Lo be error-free, nor sub[ecL Lo any
oLher warranLles or condlLlons, wheLher expressed orally or
lmplled ln law, lncludlng lmplled warranLles and condlLlons of
merchanLablllLy or flLness for a parLlcular purpose. We speclflcally
dlsclalm any llablllLy wlLh respecL Lo Lhls documenL and no
conLracLual obllgaLlons are formed elLher dlrecLly or lndlrecLly by
Lhls documenL. 1hls documenL may noL be reproduced or
LransmlLLed ln any form or by any means, elecLronlc or
mechanlcal, for any purpose, wlLhouL our prlor wrlLLen permlsslon.
Cracle and !ava are reglsLered Lrademarks of Cracle and/or lLs
afflllaLes. CLher names may be Lrademarks of Lhelr respecLlve
owners.
AMu, CpLeron, Lhe AMu logo, and Lhe AMu CpLeron logo are
Lrademarks or reglsLered Lrademarks of Advanced Mlcro uevlces. lnLel
and lnLel xeon are Lrademarks or reglsLered Lrademarks of lnLel
CorporaLlon. All SÞA8C Lrademarks are used under llcense and are
Lrademarks or reglsLered Lrademarks of SÞA8C lnLernaLlonal, lnc. unlx
ls a reglsLered Lrademark llcensed Lhrough x/Cpen Company, LLd. 1212
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