Customer Snapshot: Overview
99% of British Households buy Premier food products every year.
Premier Foods is Britain's largest branded food producer with revenue of £2.0 billion (€2.4 billion) – manufacturing, distributing, and selling a wide range of branded and non-branded products. With around 12,000 employees in over 40 sites across the UK and Ireland, Premier requires business processes that are extremely flexible and seamlessly integrated to stay competitive and keep up with growth.
£2.0 billion (€2.4 billion)
Number of Employees
Implementation Partner URL
St. Albans, Hertfordshire, UK
Line of Business
Finance, Marketing, Sales
SAP Trade Promotion Management
Customer Snapshot: History
Customer Snapshot: Business Model
Iconic Brands People Know & Love
Premier Foods has the strongest brand portfolio in the UK food industry including some of the country’s most iconic and best-loved brands. Dozens of their food brands are number one in their respective product categories, and an amazing 99% of British households buy one or more of Premier’s branded products.
Premier Foods has a great track record in anticipating the changing lifestyles and preferences of consumers, and ensuring that their brands remain relevant and category leaders.
Customer Snapshot: Success Strategy
Around 57% of Premier Foods sales come from branded products and they have the scale, the insight, and the passion to drive innovation and growth in this area.
Keep Fresh Bread Selling Fast
Premier Foods, Hovis division is the biggest vertically integrated baker and flour miller in the United Kingdom. The Hovis division faces very different challenges than the rest of the company since its products have a much shorter shelf life. As a result, it employs different technology products and processes.
For years, the rest of the company had SAP software in place for all core processes while Hovis ran its business with other software, and as a result, Hovis had no software to help manage these critical trade promotions.
Supporting Promotions that Work
With an SAP software deployment on the horizon for Hovis, Premier Foods developed a plan. First, it would select a strong, new trade promotion support application for Hovis and deploy it simultaneously with the SAP software. After Hovis had verified the value of the application, the rest of the company would begin using it as well.
The goals were to increase the effectiveness of promotions as well as people’s efficiency in executing them.
Enter SAP: The SAP Experience
As its implementation partner, Premier Foods selected Bluefin Solutions. The integrator’s understanding of the food manufacturer’s business bred confidence that the deployment would be successful. Premier Foods also knew that Bluefin’s extensive experience with the SAP Customer Relationship Management (SAP CRM) application would prove valuable during the implementation.
A smooth implementation with the experts.
SAP Trade Promotion Management has all the features we were looking for.
The implementation of SAP Trade Promotion Management application provided an integrated environment that supported all sets of trade promotion — including a wider range of promotion types than any alternative they examined, and it does the best job of reporting and increasing visibility throughout the promotion process.
Better Business: Benefits
With the SAP Trade Promotion Management application, all phases of a promotion – from planning to settlement – are tightly integrated together, allowing for speedier execution and heightened efficiency. System-controlled workflow processes ensure that promotion approvals are made by the correct people via proactive notification.
All these improvements add up to better control, and better control means bigger returns on our investments. We are finding that our promotions are delivering greater returns since we deployed SAP Trade Promotion Management. We are completely recovering our investment in the application and implementation in a few years. And that’s just from Hovis, which is less than half our business.
Better Business: Lessons Learned
The Hovis division now uses the SAP Trade Promotion Management application for all aspects of managing its trade promotions, from initial planning at headquarters to field execution to final evaluation, analysis, and reporting. With the application’s help, Hovis has automated cumbersome manual processes and shortened lengthy workflow cycles.
We set up automated approval and workflow processes, so we can proactively notify the right people of promotions approvals and take timely action. We have greater lead time and flexibility in planning our promotions. We can allocate promotional spending in the right place for the right reasons, integrate and coordinate sales forecasts, and proactively predict performance.
Better Business: Run Simple
At that point, the legacy application will be retired and the firm will add reduction in support costs to its already impressive benefit scenario. By increasing returns on the millions of pounds spent annually on promotions, the software is paying for itself quickly.
SAP Trade Promotion Management does a great job of managing our spending, but we want to go a step further and get some help figuring out where that spending works best. That’s the potential for the SAP Trade Promotion Optimization application, which we are carefully evaluating to extend our trade promotions functionality. Between the two applications, we have a lot of functionality to explore that looks very fruitful.