Promotion Analysis Techniques Course Preview


welcome to category management knowledge

groups course preview on promotion

analysis techniques promotion is one of

the category management tactics and is a

key driver of incremental sales as well

as a point of differentiation for

retailers promotional events are

executed by retailers and vendors to

influence consumer demand thereby

driving sales and profit promotion is a

means of moving merchandise through the

retailer to the consumer promotion can

result in a lift in sales by more than

two or three hundred percent in some

categories here are the learning

objectives for the full course there are

several hands-on workshops included that

help students to practice their new

learnings and learn to apply their new

skills will only cover a few of the

objectives in this course let's get

started let's start by understanding how

promotion fits into the consumers

purchase decision promotion is one of

the category management tactics and is a

key driver of incremental sales as well

as a point of differentiation for

retailers promotional events are

executed by retailers and vendors to

influence consumer demand thereby

driving sales and profit promotion is a

means of moving merchandise through the

retailer to the consumer promotion can

result in a lift in sales by more than

two or three hundred percent in some

categories for retailers promotion can

mean two things

first there's the strategic more

long-term type of promotion which can

relate to a retailer's marketing


the retailer programs developed in here

are focused on sending overall messages

about their stores to potential

customers this is done through retail

marketing private label brands marketing

flyer programs and if

marketing these programs help determine

the types of consumers that retailers

attract to their stores and they put the

plans in place to bring those customers

into the stores each of these components

are typically driven by a separate

department or team within the retailer

or across different functions the

marketing teams objectives include

establishing a clear market position for

their formats and banners drawing new

target consumers to the retailer stores

and improving or enhancing a retailer's

image in the community the second part

of the promotion relates to operational

promotions usually focused on a product

category or store the objectives of

these operational programs must support

retailers product management objectives

we're going to be focusing the rest of

this training course on the operational

side of promotions for both retailers

and vendors promotional evaluation

should start with confirming promotional

strategy for both the retailer and the

vendor next a top-line promotional

evaluation should be completed including

a promotional scorecard where the

promotional results are assessed at a

category brand and segment level the

third level of promotional evaluation is

deep dive analytics based on weekly and

item level data this gives insights into

past promotions and helps the plan for

future promotions the final level is

promotional planning which is assessing

promotional weeks to determine the most

impactful promotional weeks and the

corresponding price points this also

considers return on investment both from

a retailer and vendor perspective this

is the approach that we follow for this

course to give you a robust and in-depth

understanding of all aspects of

analyzing promotion let's get started so

what are a retailer's overall promo

shanell strategies for the category

promotion may drive consumer traffic

into the store particularly with

retailers who have a high-low pricing

strategy promotion helps retailers build

their price image things like hot priced

front page ads and buy one get one free

promotions confirm to consumers that

they're in the game promotion also

allows retailers to make competitive

statements either on price or new

in-store concepts another retailer

strategy is to induce trial and create

excitement for the consumer retailers

may run contests support local

fundraising activities or have value add

promotions building profit through cross

category promotions like a barbecue

flyer or ethnic foods flyer can increase

sales in highly profitable categories

and promotion can build loyalty through

different programs like everyday low

price or EDLP and loyalty club programs

promotion doesn't always necessarily

relate to low prices that's only one of

the strategies that retailers can take

understanding strategy upfront can make

the assessment phase much more

straightforward and targeted retailers

may have three objectives as they relate

to promotion which also tie in with the

strategies that we just reviewed these

include to draw new customers or traffic

to the retail stores or acquiring new

customers to draw loyal customers back

to the retail stores more frequently or

retaining their most loyal customers or

to draw shoppers to purchase once

they're in the store or selling more to

shoppers each of these objectives views

different promotional vehicles to

communicate to their consumers or

shoppers let's review each of these

promotional objectives in more detail

including the different promotional

vehicles drawing new customers and

traffic to stores is one objective of

retailer promotions the objective for

retailers is to induce trial

this can include hot pricing coupons new

products contests community and charity

events and specific target customer

events retailers can use vehicles like

print advertising including flyers

inserts or newspaper ads online

communications and TV and radio flyers

are the most visible form of consumer

marketing in the business with over 37

million Flyers being distributed weekly

in North America this industry alone is

worth billions of dollars in costs to

retailers and vendors retailers may also

want to draw their most loyal customers

back to the store through special

functions including contests and

sweepstakes special customer services

price discounts or rebates points

programs with rewards and personalized

customer interactions these offers are

made only available to their top

customers usually through some type of

loyalty card program retailers can use

email direct mail print advertising and

flyers and TV and radio to communicate

to their most loyal customers if they

have some type of loyalty card program

they can specifically target groups

within their loyalty cards and connect

with them directly the last type of

promotions are in store driven by

displays in-store demos point of

purchase materials in-store digital

media and signage in-store promotions

can also be referred to as shopper

marketing with retailers trying to

influence shoppers in their path to

purchase for retailers promotion

planning and execution is a significant

component of the day-to-day business

within the category management team here

are the basic steps of the promotion

planning and execution process for a


Tayler it starts out with an annual

target setting and marketing calendar

being developed with the senior

management at the retailer setting their

targets to achieve their annual business

plan developing the marketing calendar

is typically jointly owned between

different functions responsible for

merchandising and marketing within the

retailer retailers will then meet with

vendors to develop and agree to an

annual business plan including

promotional support over the upcoming

year this is usually done in the full

time period and includes negotiations

vendor agreements and agreements to

volume targets for the upcoming year

then the retailer allocates items front

pages and themes like Christmas

Thanksgiving and Easter and is always

looking forward by one or two quarters

to continually plan and purchase for

upcoming events on a weekly basis

category teams select items and

determine forecasts the last step of the

process is promotion execution and

performance management many promotional

mechanics are required including

communications to stores print fliers

and so on also a team within the

retailer should perform a post

evaluation of results from each

promotion including forecast versus

actual performance retailer headquarters

needs to consider everything from floor

plans to promotion and merchandising

information to add and ordering

information and even price tag

allocation there are many different

components that can be included in the

communications to stores depending on

the overall processes within the

retailer's own promotional strategies so

promotion has a direct impact on stores

in many different ways

promotion management applications for

retailers can vary significantly based

on the sophistication of their own

internal systems overall these systems

allow for automation of the planning

execution and review of promotional

events an ongoing focus area for

retailers is around inventory poorly

planned inventory behind promotions can

result in out of stocks which are costly

due to lost consumer purchases or excess

inventory which also incurs significant

cost to the retailer many retailers have

internal applications that allow for

effective forecasting on an ongoing

basis promotional planning is an ongoing

requirement for retailers more

sophisticated systems allow retailers to

determine margins at planned selling

prices predict lift factors based on

promoted price points and historical

results and to understand what

additional volume is needed to break

even on margin promotional tracking

ensures that there are evaluation

methods in place to assess promotions

after they've run both for a specific

flyer as well as for aggregates over

time there are also sophisticated

systems for developing AD layouts the

actual ad layout and development is

typically worked in a separate retailer

department with input from the category

management team based on this

promotional planning requires six synced

and software applications to be in place

to allow for easy execution of

promotions for retailers for most

retailers ads are run every week or even

more frequently for some that have

multiple banners and regions that are on

different flyer cycles vendors promote

for the same reasons as retailers but

they're typically focused on the brands

that they represent and to increase

awareness and loyalty for their brands

vendors typically rely on trade spend

dollars to promote their brands through

their retail partners in this era of the

ever-changing consumer the race is on to

improve the effectiveness of trade spend

the effective management of trade

promotions is growing in importance

promotions represent a significant part

of the cost of consumer packaged goods

and an important part of a go to market

strategy for enhancing brand market

share but there's little visibility into

where this spending actually goes or how

effectively it increases revenues

expands market share or creates brand

awareness among consumers consumer

packaged goods companies want to improve

their effectiveness to reach targeted

consumers shape demand to increase

market share and maximize the

effectiveness of trade dollars we'll get

into more detail on trade spend later on

in this training course we've now given

you a preview of our certified course on

promotion analysis techniques which is

an important tactic to understand and be

able to evaluate the results of there

are many options for you to choose from

if you're interested in purchasing this

course the online course is available

for purchase through our house which is

category management knowledge groups

state of the art online training center

if you'd prefer we can also run a

private webinar for up to 200 people for

a cost of three thousand dollars or a

live session at a national or team

meeting or if you're from a larger

organization where many people would

want to access the course we can also

make the course available for your use

within your own internal learning

management system your choices are

limitless return on investment of your

data purchase is paramount for the

millions of dollars some organizations

spend on data you want to know that the

data is being optimized and maximized

purchasing data gives your organization

facts and data but you shouldn't

allocate your whole budget to data by

adding in software and reporting tools

you're providing them with information

usually this requires additional budget

dollars to pay for the software and

tools for many organizations

the data and software comes with

training and unfortunately many believe

that training is enough to develop

skills to properly use data but it's not

you need to provide applicational

training that will help your

organization move from data to insights

not only category management needs to

have these skills sales marketing space

management and other departments require

these analytic skills to make more

strategic and fact-based decisions in

their roles and to move to breakthrough

insights the right analysis at a much

deeper level needs to be done this is

where the specialists do their work

where category management and shopper

marketing can complete the in-depth

analysis to find those breakthroughs you

need to set aside part of your data

budget to pay for the corresponding

applicational training to increase

capability on your team and in your

organization ongoing this will help you

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more importantly move your organization

to a more strategic and fact-based

approach at category management

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create solutions that will help you move

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on investment for data purchased so

where do you go from here if you're

interested in purchasing the certified

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soon have an excellent day