Popcorn, Indiana Case Study
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Transcript of Popcorn, Indiana Case Study
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Case Study:
Value & Success is Not a TPM Myth
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Welcome & Housekeeping
• Attendees in “Listen-Only” Mode • Type your Questions into the “Chat Box” on the Left Hand
Side of the Screen
• You Must Dial-in by Phone to Hear Today’s Conversation:
(866) 740-1260 Code: 3547026
• Today’s Presenter is Michael Cross, Product Marketing Manager at TradeInsight
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Meet Popcorn, Indiana
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Case Study: Trade Promotion Management
• Popping up Gourmet, Whole Grain Snacks That Their
Customers LOVE!
• Company Began 5 Short Years Ago, With Retail Stores in Malls
Selling as Dale and Thomas Brand
• Popcorn, Indiana is Now Available at Retailers Nationwide (Food, Drug, Mass, Natural, Specialty)
• Competing in Trade-Oriented Category: 40%+ of Volume Sold on Promotion
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• New Customers Demanded Trade Dollars
o Needed to Spend and Wanted it to be Effective!
• Snack Category is Highly Promoted
o Needed to Maximize Display Exposure during Events due to Impulse buying
o Consumers Switch between Segments Based on what they “Trip Over” in the Store
Needed to Upgrade Trade Promotion Approach
As Distribution Expanded Across Channels
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PEOPLE PROCESS TOOLS
To Get To Next Level, Popcorn, Indiana
Looked At…
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Popcorn, Indiana: PEOPLE
• Strong Executive Support, Involved Throughout the Entire
Implementation Process
• Provided Clear Goals for the Project:
o Keep it Simple, so the Sales Team will Use it
o Willing to Invest in Technology, but Need Year One ROI
o Need a Planning System which will Work Around Our Processes and
Distribution Channels (Direct, DSD, Food Service, etc.)
o Need a System which will Allow Cross Functional Teams to View a
“Single Version of the Truth”
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Trade Spend is No Longer Simply the Cost of Doing Business.
It is a Strategic & Controllable
Expense Allocated by Us according to Our Business
Strategy.
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• No “Legacy Process” was Immune from Review
• Adopt “Best Practices” From Other Companies
• Start with Clean Information in System
o Sales History was Accurate, but Spending wasn’t, so Importing it into New System wouldn’t be Advantageous
o Critical that Customer and Product Masters are Accurate, and a Great Time to Review Naming Conventions on Products
• Develop Reliable Metrics to Allow Measuring Results
• Believe the Numbers and Run Business Accordingly
Popcorn, Indiana: PROCESSES
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Popcorn, Indiana: Tools
EXCEL is Not a Long-Term Solution!
• Fine for Building Budgets and Initial Sales Forecasting, but with Far too Many Limitations
• Updating Field Forecasts is Tedious, with Various Versions of Documents Circulating
• Changes in Customer’s Promotional Activity and Timing Shifts Hard to Capture
• No Feed to Order Management System, Requiring Planned Events to be Set up Independently to insure Proper Allowances are Applied
• Deductions Difficult to Clear, and Paid on Customer Documentation, Rather than Planned Promotions
• No Post-Promotion Analysis Capabilities
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The ‘Options’
ERP Module Build Solution In-House
Software Solution
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Going to the Next Level with Tools
• Software-as-a-Service (SaaS)
• Hosted Solution
• Intuitive, User-Friendly
• Implemented in 6 Months or Less
• Affordable
• Year One ROI
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Distributor
Data Retail
Consumption Data
Syndicated
Data
Demand
Planning
ERP
Financials
One Plan
One Place
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Measurable Results
• Completed Implementation in 5 Months with a Fully
Functioning Planning System in Only 3 Months
• Deduction Balance Dropped from 3.5% of Sales to Less than
1% in 60 Days
• Reduce Forecasting Error KPI (MAPE) by Half Through
Improved Processes and Visibility Enabled by TPM System
• Sales +24% and Share +2pts without Additional Trade
Spend
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Visibility
AFTER
Visibility Without Aggregating Spreadsheets
Plan, Execute & Pay for all Trade Programs within one TPM System
Easier to Communicate Programs/Customer Activities
Track Sales and Spend at Program & Customer Level
Improved S&OP Process and Aligned Team with One Plan
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Analysis
AFTER
Measure Lift of Promotions
Have Begun to Optimize Promotions
o Which Tactics Work Best in Each Channel
o Which Price Points Drive the Most Lift while still Profitable
Validate Retailer Execution
Input for Customer P&Ls
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Sales Forecasting
AFTER
Integrated Key Systems and Automated Data Feeds
Provide Sales with Better Forecasting “Start Point” by Pre-Populating Base Forecast from Channel Consumption Trends
Better Information for Production Means Orders Ship on Time and Compete!
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Deductions and Chargebacks
AFTER
Huge Productivity Gains o Matching and Clearing Deductions (Sales Ops) o Establishing Accruals to Fund Future Deductions (Finance) o Fewer “Spending Surprises”
Decline in Deduction Balance
More $ to Re-Deploy to Future Programs to Drive Revenue
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Trade Spend is No Longer Simply the Cost of Doing Business.
It is a Strategic & Controllable
Expense Allocated by Us according to Our Business
Strategy.
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Let’s Take Some Questions!
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Next Up In The “CPG Online Learning Series”
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