Supply Chain Insights, LLC © 2012

Supply Chain InsightsDelivering Insights to Line of Business Leaders

Supply Chain Insights, LLC © 2012

“If past history was all there was to the game, the richest people would be librarians." -- Warren Buffet.

Supply Chain Insights, LLC © 2012

Recent news…

Amazon gains 1% market share for major CPG manufacturer..

Facebook launches “Action Types” in new release

P&G lays-off 1600 in the shift from conventional advertising to digital.

Wal-Mart re-enters the data pools.

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12/11

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Kroger closes vendor labs. Multiple manufacturers launch Digital Path to Purchase programs.

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Use of Emotions?

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More than an “F-word”. For Hallmark….

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Market mix is the use of technology to determine the right mix of marketing tactics – advertising, social, price, promotions, trade – over multiple years.

Promotion management is the use of price, product placement, and packaging to stimulate demand, increase lift and improve market presence against a strategy.

Definitions

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Polling Question

Do you currently use a technology to determine the right market mix?• Yes• No

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What is an effective program?

• Each dollar spent has a goal. • Data and supporting techniques support the goal. • There is equal focus on process and outcome. • There is a focus on continuous improvement. • Programs are adapted based on joint value creation with

trading partners and demand sensing of effectiveness at the shelf.

• It is embedded in a holistic demand management program.

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Q. How well did you company do in reaching the goals of your most recent trade promotion technology project?Q. How long will this implementation fulfill the needs of your company before it will need to be replaced?

Marketing

Trade Funds

Sales Operations

<$1B in annual revenue

$5B or more

25%

4%

28%

9%

33%

67%

65%

44%

63%

54%

8%

30%

28%

27%

13%

Fell short Met expectations Exceeded

Avg life expectancy

18 months

14 months

15 months

14 months

18 months

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24%

24%

26%

22%

25%

21%

31%

24%

33%

24%

22%

25%

28%

33%

30%

36%

27%

34%

28%

47%

30%

24%

28%

23%

36%

27%

29%

33%

20%

24%

27%

21%

17%

23%

8%

16%

12%

6%

9%

26%

In-store advertisements

Every day low price

Pricediscounts/changes

Joint marketing w/retailers

Buy one get one free

Market basket or cross-category promos

Coupons

Custom products

Floor displays or endcaps

Special packaging

Less than 50% 50-70% 70-90% Greater than 90%

Trade Promotion Compliance w/ Retailers?Q. What percent of your trade promotion tactics have compliance at the retail level?

Sample Size = [varies by # of companies using each promotion type]

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Pace of change in retailer programs.

Growth of digital opportunities and the launch of digital path to purchase (#DP2P).

Only 52% of promotions are currently evaluated.

Compliance gaps in retailer execution.

Why Market Mix?

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