Change management is a dirty word in the Consumer Packaged Goods (CPG) industry. It is, without adoubt, the biggest hurdle companies face when deploying new technology that will require the adoptionof new processes, and ultimately new behaviors. A true Trade Promotion Management (TPM) solution, forexample, is oftentimes opposed by the Sales team, which becomes the organization’s first major battle inthe quest for cultural change.
Are you frustrated with overspend “surprises?” Are you challenged with a better way to keep track of how much you’re spending? Tired with not knowing at any given time how much money you’ve accrued and spent? Wouldn’t it be great to get a report whenever you want that would show you this exact information? If so, CPGToolBox has the solution.
One-size-fits-all promotions are a losing strategy. Two-thirds of trade promotions don’t break even, and manufacturers are practically paying consumers to buy their products. CPG brands and retailers must look beyond the traditional “right time, right place, right price” playbook to convince consumers to participate in a promotion.
Deductions are unavoidable in the Consumer Goods (CG) industry. In fact, most trade spend activities are settled between a manufacturer and a retailer in the form of deductions or charge-backs. With deductions being such commonplace, why does effective and timely deduction management continue to plague CG manufacturers? Perhaps the key to solving the tribulations surrounding deduction management needs to start by not asking how, but rather who.
In comparison to Excel® spreadsheets, Trade Promotion Management (TPM) software solutionsare too often viewed as constraints (at best) and distractions (at worst) by members of the Sales team. In reality, a cloud-based TPM platform provides Sales and the entire Consumer Packaged Goods (CPG) organization with the workflow, metrics, business logic and analytics spreadsheets inherently lack.
Indirect sales between a Distributor and a Retailer, as opposed to the Manufacturer and the Retailer, cancreate a major blind spot for natural and organic manufacturers. Natural brands who can close the gap between direct and indirect trade promotion activities will be better positioned to enhance trade spend effectiveness among top Distributors, and ultimately increase sales.
The annual planning process is a ritual most CPG companies embark on each year. The process consists of evaluating current year progress and making projections for the coming year in terms of expected sales and level of investment with their retailer partners. Some companies take a “top down” approach, others take a “bottom up” approach and many doing acombination of both.