Total trade spend is up 33% in the past five years and estimated to be between $80 and $100 billion—yet, 80% are not measured. Clarkston Consulting’s Trade Promotion Optimization (TPO) solution integrates the consumer-driven demand and supply networks to ensure that the right quantity of the promoted product will be on the shelf when the consumer makes their purchase decision. TPO will reduce stockouts, lower inventory levels, and increase profit for the manufacturer and retailer.

• It is estimated that a TPO strategy can increase profits by 40%.
• Better controls of trade allowance and customer P&L’s will reduce spending on ineffective events, as well as foster collaborative relations between manufacturers and retailers, build brand awareness, decrease deductions, and provide greater invoice accuracy.
• Industry studies estimate that a 5% reduction in promotion spending potentially improves net earnings by 10%.
• Key performance indicators can include category lift, sales lift, profit per incremental case, percentage pass through, trade margin and volume increase, and Return on Trade Investment.

Clarkston delivers:

• Strategy
  • Maturity Model
  • Vendor Review
• Process Development
  • Promotion Planning
  • Promotion Modeling
  • Analytics
• Enabling Technologies
  • Enterprise Resource Planning
  • Customer Relationship Management
  • Business Analytics
• Training
  • Education
  • Recurring Model — Analytics

TPO is the evolutionary process of applying quantitative methods to each of the seven stages of the trade promotion lifecycle especially in the planning, execution, and post event stages. For more information on how to move from trade promotion management to TPO, call us toll free at 1-800-652-4274 or send an email to marketing@clarkstonconsulting.com.