New Options for Effective TPM

For many consumer goods companies, trade promotion management (TPM) continues to be one of the most significant areas of marketing investment and an opportunity for further improvement. Traditional processes and tools are not meeting the marketplace demands, and business executives from consumer products companies are looking for a new, innovative approach to TPM. This is especially true for mid-market companies, alcohol beverage manufacturers, and for the emerging-market strategies of larger companies where a one-size-fits-all approach to TPM is inadequate.

 

On July 7, 2011, during a CGT Web seminar, audience members were informed on the latest TPM trends in the industry, how cloud computing enables a more agile and cost-effective approach and so on. John Peto, principal for Deloitte Consulting LLP and Dwight Moore, industry director, Manufacturing and Retail, salesforce.com, revealed how companies can increase trade promotion effectiveness, and boost performance across the globe. Here are some other highlights from the Web event:

 

--Consumer products companies are facing a series of complex challenges. Some business challenges exist in trade promotion results, collaboration, consumer spending, consumer relevancy, pricing and sales productivity. “There’s too much information for sales teams to sift through to help drive a better decision-making process when it comes to promotions,” explained Moore. There are also some technical challenges to consider, including data visibility, operating costs, product introductions, customer mandates, innovation and data quality. “It’s amazing how innovation has impacted technology in the past three to five years. This has really put the IT side on its heels in order to remain competitive,” Moore said.  

 

--The drivers for TPM software implementation revealed some interesting conclusions and trends. Peto said that, “CPG firms are looking to get smarter with spending behaviors rather than streamlining settlement processes.” He also draws some other conclusions: The need to predict the effects of promotions has become increasingly important. The cost or lack of budget with inadequate resources tops the list of business barriers preventing investments in TPM. There is a clear need for innovative technology in a TPM tool.

 

--Moore and Peto both agree that by using a cloud-based solution, it will enable TPM for underserved and time-sensitive markets. Some key capabilities include trade event and activity calendars, market management, trade event management, customer planning and much more.

 

To listen to this event in its entirety, click here.