Consumer Products Companies Predict and Maximize Promotion Results With SAP Trade Promotion Optimization Application


WALLDORF — Among ongoing economic uncertainty, tight margin pressures and an unyielding global growth imperative, the emphasis for consumer products companies on optimizing trade spend has never been greater. SAP today announced general availability of the SAP Trade Promotion Optimization application to help companies make the most of trade promotion spend.

SAP Trade Promotion Optimization uses advanced modeling and predictive analytic capabilities to provide visibility into both forward-looking performance guidance and backward-looking performance analytics. The application enables consumer products companies to perform what-if simulations based on retail point-of-sale, syndicated retail measurement data, market research data and order history and other internal data. In doing so, they can obtain reliable recommendations for promotional activity, from individual events to annual promotion plans. Users can assess and define the best promotion opportunities for a given product, such as discounts, rebates or premiums, and take into consideration effects such as seasonality, holidays, product availability, store closures, cannibalization of products and price changes.

Molson Coors Brewing Company is piloting SAP Trade Promotion Optimization for its UK and Canadian business units. The application gives Molson Coors the ability to predict and suggest optimal pricing and merchandising options — for both the company and its retailers. Predictive optimization capabilities available within the application will enable Molson Coors to predict consumer demand and optimize promotion variables. This will help the company achieve category objectives and improve mutual confidence that revenue, volume and profitability targets will be achieved, and thus supports increasingly strategic collaboration with retailer partners.

To help consumer products companies jump start their journey to trade promotion optimization, SAP released a rapid-deployment solution for trade promotion planning and optimization. The rapid-deployment solution leverages SAP and industry best practices to enable a template-driven approach for quick implementation and deployment. At the same time, it provides consumer products companies the flexibility to modify and adjust their business processes and predictive models over time based on business growth and observed results. Companies that leverage the SAP rapid-deployment solution for trade promotion planning and optimization can expect time to value in as little as 12 weeks.

For more information, visit the SAP for Consumer Products solutions page on sap.com and the SAP Newsroom. Follow SAP on Twitter at @sapnews and @SAPtweetTPO.

Media Contact:
Kate McNeel, +1 (484) 624-2256, k.mcneel@sap.com, CDT