In High Demand

The pressure to boost promotions efficiency and effectiveness has blossomed into a throbbing IT headache for the consumer goods industry. New regulatory changes heighten the need for new approaches to promotion management. The Sarbanes-Oxley Act requires that by June 15, 2004, all public companies have meticulous financial control and reporting procedures in place, making loosely managed promotion spending a thing of the past. In addition, the Financial Accounting Standards Board (FASB) standards now requires most trade promotion spending to be deducted from revenue rather than considered an expense, triggering yet another fear factor for CG firms.

Tricks of the Trade

In an effort to better manage its trade promotions, Welch's uses Demantra Trade Promotions Management (TPM) to monitor and measure the performance of its trade and promotional investments, generate greater return on promotions and improve the stability and accuracy of demand signals to its plants. Demantra TPM expands Welch's use of Demantra's marketing, planning and analytics solution suite, Spectrum. The suite synchronizes Welch's sales, marketing and promotional plans with its supply chain planning activities to boost profits. With Spectrum's Promotion Effectiveness solution, Welch's can analyze customer trends. By understanding trends, the financial impact of Welch's promotional efforts can be more accurately measured.

Spreading the Wealth

Welch's, the world's leading marketer of Concord and Niagra grape-based products, reported sales of $553 million in 2002. The company manufactures a multitude of other fruit-based goods including 100 percent juices and juice cocktails. Other Welch's drinks appear in the form of bottled, refrigerated, single serve, frozen and shelf-made concentrates. The company also produces various fruit spread products under the Welch's and BAMA brands. With such a diverse product offering, Welch's needed a robust solution to handle its complex demand and forecast needs.

Understanding the Market

Demantra's Demand Management solution will enable the company to generate more accurate demand plans and forecasts and automate such customer-facing processes as collaborative planning, forecasting and replenishment.

"Consumer demand and accurate customer level planning are key drivers in our business and it is important to not only understand market and customer trends, but also to profitably meet stringent customer targets," says Gerard Liberty, chief information officer for Welch's. "Spectrum's collaborative environment will help us streamline operations, as sharing corporate promotional plans across multiple departments will allow us to integrate sales and marketing decisions with our supply chain."

Liberty says increased visibility into Welch's promotional plans and performance will ultimately enable the company to more accurately monitor and measure the effectiveness of the company's trade and promotional investments.