Price Optimization

CGT's readers rank the top 10 technology companies that provide a solution for trade promotion effectiveness, including trade promotion management (TPM), price management, trade promotion optimization (TPO), etc.

Contrary to the usual strategies of many top retailers, a new study reveals that consumers are often put off by promises of lowest prices. Read on to find out the significant implications that this research has for retailers and manufacturers.

Members of CGT's TPM Share Group met in Orlando, Fla., during the Consumer Goods Business and Technology Leadership Conference on October 23, 2012. The group moved away from the recent TPO discussions, which are aspirational for most, and focused on more practical aspects of TPM execution. Here is a recap of the discussion.

For more than 30 years, trade promotions have been the "currency of the realm"; the way to get new items on shelves, to encourage retailers to advertise and display existing products and to fund price reductions. Over that same period, the industry has spent millions on improving the efficiency and effectiveness of these investments. While that remains important, we dont see trade promotion optimization as the answer. What we need is a new currency.

Johan Sauer of Cognizant's Consumer Goods Consulting Practice explains the origins of the trade promotion model, and describes how to leverage consumer and shopper insights to drive collaboration with retail trading partners.

On June 4, 2012, executives from the Trade Promotion Share Group met at the Roosevelt Hotel in New York, NY, during the ninth annual Consumer Goods Sales & Marketing Summit. The group kicked off the meeting by discussing what they are currently leveraging in the Trade Promotion Management (TPM) space, where they are in their TPM journeys, and best practices for TPM success.