Many FMCG brand owners spend as much on in-store and online promotions as they do on above-the-line advertising.
Promotional budgets often run into the millions. The challenge for brand owners – and particularly those with multiple products – is knowing which specific promotional levers work best for individual product SKUs in particular retailers. For while they can have dozens or even hundreds of promotions running across their portfolio of products and the varied retail estate, typically only a handful of promotions deliver the lion’s share of incremental revenue.
It’s a paradox of modern marketing that trade promotions don’t have the reputation for being the most glamorous part of the mix and yet – with the right sort of planning and the application of the right kind of analytics – they can deliver a demonstrable and meaningful return on investment. Fortunately, recent advances in both analytical modeling and online planning tools are now enabling FMCG brand owners and their retail partners deliver significant top line and bottom line growth that benefits both parties, and consumers too.
More than a decade ago at Ebiquity, we developed a pioneering and award-winning planning tool for trade promotions called PLANIT. Using historical data from previous trade promotions, PLANIT helps brand owners to create complex commercial scenarios at a SKU x retailer level. The tool enables advertisers to see the impact of a wide variety of potential price points over different time periods and choose the optimal promotional strategy to deliver the best possible returns.
Since we first developed PLANIT, we have worked with both brand owners and retailers to develop and enhance its capabilities. And now, for the first time, we have made PLANIT available as a stand-alone, online planning tool.
The new version of PLANIT is both more powerful and more nimble than before, capable of handling large datasets to create rapidly multiple, complex, commercial scenarios. PLANIT gives everyone in a brand marketing organisation access to the data they need with a level of control (viewing or editing) that the leadership feels happy to grant. The tool houses all historical promotional evaluations, and creates high-end data visualisations of the potential impact of future promotions.
Effective commercial planning is about more than just smart models. It’s about using smart models and price and promotional data to make smarter decisions. By enhancing PLANIT and moving it online, our marketing effectiveness team has now made that process easier and more powerful, for both FMCG brands and retailers.
If you would like to request a product demonstration of PLANIT, please click here.