Considering that promotions account for almost 25% of the marketing budget for consumer product companies, and 20% of revenue for FMCG companies, it's critical to optimise promotional spend and allocation. And yet, despite this enormous level of investment, most manufacturers and retailers don't optimise or even measure their promotional effectiveness. In most cases, the common practice is to take last year's plan and tweak it, without identifying ways to improve or optimise.
Due to the inherent complexity of the process, most companies use home-grown spreadsheets and ad-hoc reports for promotion planning, resulting in common problems such as:
- Manual handling and manipulation of data from a variety of sources, leading to data integrity issues and substantial time inefficiencies
- Significant time, expertise, and labour required to analyse just a few campaign scenarios and determine their effectiveness, making it impractical to conduct a comprehensive analysis and find the best campaign
- Inability to drive volume and margin predictions within markets
- Inability to generate optimised promotional plans