Revenue Management to the next level How difficult can it be? - - PowerPoint PPT Presentation

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Revenue Management to the next level How difficult can it be? - - PowerPoint PPT Presentation

Jan 06, 2023 178 likes •314 views

Revenue Management to the next level How difficult can it be? Monique Bourgondin & Erik De Vos Promotion Pressure and Promotion Effectiveness Promo pressure: still increasing! Promo effectiveness: room to improve! Improve your

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Revenue Management to the next level

How difficult can it be?

Monique Bourgondiën & Erik De Vos

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Promotion Pressure and Promotion Effectiveness

Promo pressure: still increasing! Promo effectiveness: room to improve!

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Improve your performance, how difficult can it be? How did my promo perform last time? There is no learning curve in our planning. How can I see the full ROI? We keep on planning the same things If I had known the ROI upfront, I would not… It is hard to get a comparison between promotions Volumes are planned on the wrong products and in the wrong weeks What info can I share with my customer? Our info is scattered in several files I do not have the time to really analyse, so I copy paste I need to maintain the same info in multiple files Would my promo perform better if I change some choices? I only have an internal view on performance Promo is always

  • verestimated

and generate

  • bsoletes

Will my promo even bring an uplift? Scanning historic data is manual work I was working

  • n different

info

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Revenue Management: two questions!

Which data and influences to consider when planning promotions? Where will your business feel the pain when promotions are poorly planned?

Assignment

90 seconds Post-its & Pens Split group in 2 Get up and share your thoughts

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2 minutes count down…

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1 minute count down…

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Let’s take a look at 2 things together

Which data/influences to consider ?

  • Weather
  • Competition
  • Price/discount
  • Season/Period
  • ROI estimate
  • Market Shares
  • Web scraping info
  • Promo Mechanics
  • Product range
  • Forward Buy and Dip
  • Historic performance data
  • Financial conditions
  • Logistical conditions
  • Store placement
  • Full Cost
  • ….

Where will your business feel the pain?

  • Customer Relationship
  • Time spend
  • Brand Equity
  • Visibility
  • Stocks
  • Obsoletes
  • Service
  • Claims
  • Margin
  • Profit
  • Growth
  • Market Shares
  • …
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But TPM is not a 1 size fits all – a grasp of the choices you can make

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Do not skip steps in the journey to revenue management!!

TPM TPI TPO

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SLIDE 11 EyeOn bv Croylaan 14 5735 PC Aarle-Rixtel The Netherlands T +31 492 38 88 50 mail@eyeon.nl eyeon.nl EyeOn Amsterdam Herengracht 124-128 1015 BT Amsterdam The Netherlands T +31 492 38 88 50 mail@eyeon.nl eyeon.nl EyeOn Belgium BVBA De Keyserlei 58-60 B19 B-2018 Antwerp Belgium T +32 (0)3 304 95 13 mail@eyeon.eu eyeon.eu EyeOn Solutions Croylaan 14 5735 PC Aarle-Rixtel The Netherlands T +31 492 38 88 28 mail@eyeon.nl solutions.eyeon.nl EyeOn Forecast Services Croylaan 14 5735 PC Aarle-Rixtel The Netherlands T +31 492 38 88 50 mail@forcastservices.n l forecastservices.com EyeOn Switzerland Aeschenvorstadt 71 CH-4051 Basel Switzerland T +41 61 225 42 30 mail@eyeon.eu eyeon.eu

Erik De Vos

0032 498 586 248 Erik.devos@eyeon.eu

Monique Bourgondiën

0031 610 05 72 87 Monique.Bourgondiën@eyeon.nl
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Different perspectives on TPM …..

12 Marketing
  • Effective at enhancing
brand equity
  • Drive volume versus value
  • Attract profitable
consumers
  • Brand / category alignment
Supply chain
  • Synchronizing internal
sales, marketing initiatives with demand management and supply chain
  • Reduce supply chain costs
significantly Finance
  • Accrual accuracy
  • Claims control
  • Profitability management
& control Head office sales
  • Trade spend visibility
  • Trade promotional
effectiveness & effinciency
  • “One number” planning
Retailer
  • Succesful execution of
promotion
  • Good supply
  • Category / profitability
alignment Sales
  • Reduced time in admin
  • Effective promotions
  • Increased stock availability
  • Sell in negotiation support