SAP Trade Promotion Optimization – Maximizing Revenue, Profitability, and Success: Overview Video

Learn how to get business-process support to optimize promotion revenue, volume, and profitability for you and your retailers. With the SAP Trade Promotion Optimization application, you get comprehensive tools to measure, predict, and improve KPIs for both your promotional and nonpromotional business activities.

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    • Companies selling through consumer distribution channels spend up to one-quarter of revenue on promotions, discounts, and rebates.
    • It's crucial that you optimize that spend. You need to improve promotion and price effectiveness. Provide customers with programs tailored to their consumers.
    • Optimize plans and forecasts. Empower sales teams with understanding of past demand drivers. And maximize revenue, profitability, and volume.
    • That's the power of SAP Trade Promotion Optimization.
    • The SAP Trade Promotion Optimization application gives you comprehensive tools to measure, predict, and improve key performance indicators.
    • For instance, you can use promotion net margin to assess promotion effectiveness for both you and your retail partners.
    • And, sales teams can see whether trade-promotion investments are driving sustainable increases in baseline volume and category growth.
    • The application delivers advanced analytics and decision support for your entire company.
    • Your consumer-insights team can understand price sensitivity, tactic sensitivity, and consumer segments.
    • Trade finance and brand management gain insights into cost per incremental funds by partner and product,
    • incremental dollars by percent discount, and everyday low price versus hi-lo promotion strategy.
    • Business analysts and sales teams can do what-if simulation and understand the effect on category and customer plans.
    • And your account sales team can confidently discuss next year's plan with the channel partner.
    • Let's say a salesperson needs to prepare for negotiations with a retailer.
    • She needs to optimize promotions to meet objectives for volume, revenue, and profitability.
    • She also has to meet the retailer's demand for highly tailored and targeted promotions and pricing to drive overall category growth.
    • And, she must follow guidance on permitted promotional vehicles, retail-price targets, rules for temporary price reductions, and sales' contributions to brand-profitability targets.
    • Just as important, the software's optimization engine suggests the best options for price and promotions with actionable insights.
    • Modeling and optimization tools let her test options and compare scenarios.
    • The salesperson can add new trade promotions with just one click, leveraging the best scenarios and avoiding duplication and erroneous entry of data.
    • She can also consider the retailer's goals for volume, revenue, profitability, and category growth.
    • And, she can monitor results throughout the process, applying real-time data and post-event analysis to optimize promotions.
    • SAP Trade Promotion Optimization is fast to deploy and easy to use.
    • Simple and intuitive screens let your entire organization benefit from advanced analytics and predictive insights in the context of your business.
    • With SAP Trade Promotion Optimization, you have the tools you need to maximize revenue, profitability, and success.
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