Introducing Demand Side Management Next Generation CRM for the Consumer Products Industry

CAS modified 2/1/08 9:58 AM Page 1

Introducing Demand Side Management Next generation CRM for the Consumer Products Industry

At CAS we recognize that profitable brand growth comes from the effective management of demand generating events. To do this requires the automation, integration, and optimization of all the demand generating levers. With more than 200 successful implementations in more than 20 countries, and with a portfolio of companies that trust us to manage more than US$12bn of trade spend each year, CAS has the expertise and the knowledge to help you grow profitably.

Contact [email protected] to see how we can help you manage your demand side.

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CGT CUSTOMER MANAGEMENT AND ANALYTICS CHART 2008

CUSTOMER MANAGEMENT OR KEY CONSUMER GOODS KEY HARDWARE COMPANY/WEB SITE ANALYTICS PRODUCT/SERVICE CUSTOMERS TECHNOLOGY PARTNERS

9ci Trade Promotion Management System Hartmarx, Kolcraft, Maidenform HP,IBM, Sun www.9ci.com

Bath & Body Works/Limited Brands, L’Oreal USA, The Scotts Astute Solutions ePowerCenter N/A www.astutesolutions.com Miracle-Gro Company

CAS CPWerx The Campbell Soup Company, InBev, R.J. Reynolds HP,IBM www.cas.com

Cognos, an IBM Company IBM Cognos 8 Business Intelligence (BI) Creativity Inc., Fiskars Brands, Ryobi IBM, Informatica, Teradata www.cognos.com

DemandTec delivers Software-as-a-Service DemandTec DemandTec Trade Planning & Optimization ConAgra Foods, Nestlé Purina Pet Care, Tyson Foods www.demandtec.com applications requiring no additional onsite hardware

G4 Analytics Analytics Product Cadbury Schweppes, Mission Foods, UST N/A www.g4analytics.com

Infor Infor CRM Epiphany Nestlé, Procter & Gamble, Unilever IBM www.infor.com

Interactive Edge XP3 Anheuser-Busch, Cadbury Schweppes, Diageo Intel www.interactiveedge.com

IRI BI /Price Promotion/Marketing Mix General Mills, Johnson & Johnson, PepsiCo Acxiom, IBM www.infores.com

IRM Corporation Discovery System by IRM Darigold, Tilamook, Tyson Foods N/A www.irmcorporation.com

GlaxoSmithKline, Heineken USA, Robert Bosch Tool Kenosia Corporation DataAlchemy N/A www.kenosia.com Corporation

MEI Trade Promotion Management Solution Energizer Personal Care, Morton Salt, Pinnacle Foods Dell, HP,IBM www.meicpg.com Microsoft Corporation www.microsoft.com/industry/manufacturing/consumer- Microsoft SQL Server Analysis Services The Coca-Cola Company, Cargill Inc., Procter & Gamble Dell, HP,Lenovo goods/default.mspx

The Nielsen Company Nielsen Answers Church & Dwight, Meijer, SUPERVALU IBM, Netezza www.nielsenanswers.com

O4 Corporation O4 Sales & Merchandising Applications Brown-Forman, Dyson, Procter & Gamble Intermec, Motorola, Psion Teklogix www.o4corporation.com

Oracle Oracle Trade Management Anheuser-Busch, Hershey Foods, Procter & Gamble Dell, IBM, Sun www.oracle.com

Perficient Oracle Business Intelligence Enterprise Edition Hershey Foods, JM Smucker, Nestlé N/A www.perficient.com

Relational Solutions Inc. POSmart Bayer, Johnson & Johnson, Masco HP,IBM, Microsoft www.relationalsolutions.com

Cabela’s, Drugstore.com, Procter & Gamble - Gillette RightNow Technologies CRM Software Cast Iron Systems, Dell, IBM www.rightnow.com and Clairol

Business solutions and flexible technology for in-store RW3 Inc. Kellogg Company, Nestlé, Sony PlayStation Dell, EMC, Microsoft www.rw3.com execution, reporting and analytics

HoneyBaked Ham, Karl Strauss Brewing Company, VF Salesforce.com Inc. Salesforce SFA (salesforce automation application) N/A www.salesforce.com Imagewear

SAS SAS Customer Intelligence Ambev, Gerber, Kraft Foods IBM, Intel, Sun www.sas.com

Silvon Software Inc. Stratum Best Brands, Dean Foods, Lactalis American Group HP, IBM, Microsoft www.silvon.com

Advantage Sales & Marketing, Heineken (DB Breweries), StayinFront Inc. StayinFront CRM 11 Fujitsu, Infologix, Intermec www.stayinfront.com McKee Foods

Dynamic Confections, Genesis Today, L’Oreal Luxury SYSPRO SYSPRO CRM, SYSPRO Analytics N/A www.syspro.com Products Division

Teradata Corporation Teradata Relationship Manager Hallmark, R.J. Reynolds, Yulon EMC, Intel, LSI www.teradata.com

Del Monte Foods, The Coca-Cola Company, The Scotts Vision Chain Vision Chain Demand Signal Repository (DSR) N/A www.visionchain.com Miracle-Gro Company

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SPONSORED BY: D ANALYTICS CHART 2008

KEY SYSTEM INTEGRATORS/ AVERAGE IMPLEMENTATION KEY SOFTWARE PARTNERS UNIQUE FEATURE CONSULTING PARTNERS CYCLE/TIME TO BENEFIT

Real-time deduction management integration, full circle Business Objects, Microsoft, Oracle BearingPoint, Darc Consulting, IBM processing from cash application to settlement with 90 days dashboard integration Highly configurable and scalable reason/issue code Ranges from a few weeks to months depending on a Interactive Intelligence, Microsoft, Oracle N/A hierarchy, enables companies to capture, report and company’s specific implementation and needs leverage issues and feedback Driven from a core set of templates that are underpinned From six months for single modules or retail execution, up to Microsoft, SAP Booz Allen Hamilton, Deloitte Consulting, IBM by deep process maps; makes the implementation fast 12 months for more demand-side, enterprise-wide solutions and aligned with customers business process needs BI capabilities — reporting, analysis, scorecarding and IBM, Sterling Commerce, SSA Deloitte Consulting, IBM, Niteo dashboarding — on a single SOA platform: appliance for con- Two to six months for enterprise-wide ROI tinuous supply chain monitoring and analysis Allows users to forecast volume and profitability metrics Interactive Edge Accenture for promoted items, total manufacturer portfolio and the 90 days from project kickoff to full implementation entire category Three critical functions: Demand signal repository -data inte- The G4 architecture is designed to be rapidly deployed to Microsoft, TXT e-solutions N/A gration, demand side management, and advanced analytics maximize time to benefit from three to six months. and scenario planning Database, real-time analytics for loyalty and cross-channel Depends on modules used, typically between three and six Teradata N/A customer relationship marketing with more interaction months or the Fast Start program takes three weeks management deployments than any other vendor Leverages all data sources to conduct category management Implementation is typically two to six weeks with return DemandTec, Microsoft, SAP Management Science Associates and revenue optimization analyses, and generates customer- on investment occurring within three months. specific and customizable data-driven presentations Combines store-level sales data, methodology and tools IBM, Marketing Analytics Inc., Symphony Software IBM, Symphony Marketing Services to deliver flexible, accurate results: understands the Average implementation time is four to six weeks. tradeoffs across simulated scenarios

Easy-to-implement and portable business intelligence Discovery System is quickly implemented in less than 30 Adesso, Microsoft, TrackMax/DRM N/A solution offered on a monthly subscription basis days, optimizing time to benefit for our clients

Ability to bring together disparate data sources in one Implementation is less than two weeks including training. N/A The Nova Partnership easy to use analytical solution with dynamic output to Time to benefit is less than four months. PowerPoint and Excel: the Switzerland of data Easy to learn and use; delivers actual, quantifiable results Implementation time averages three to six months; payback Microsoft, Oracle, Sybase Capgemini, IBM that leads to evangelical references from an increasingly period of less than six months. growing client base Consumer packaged goods manufacturers of all sizes Varies based on complexity and require analysis to CAS, O4 Corporation, VMT Accenture, Avanade, Hitachi Consulting respond quickly and efficiently to customer needs with determine actual implementation effort and time to benefit a demand-driven supply network Delivers a collection of powerful business applications in a Cognos, MSFT, Oracle, TIBCO Accenture, TCS business-process oriented framework: empowers users to 45 days to 12 months gain insights, share information and drive profitable growth Pre-built for rapid deployment and fast user adoption Implementations range from a few weeks to a few months Market6, Microsoft, TrueDemand Accenture yet highly configurable to meet each customer’s unique depending upon the client’s requirements business requirements Enables customers to manage their entire customer and Implementation varies by customer requirements. All Platforms Deloitte Consulting, IBM, Perficient trade relationship in a single integrated solution; has been Customers can begin realizing value in as little as 90 days. implemented with all major ERP solutions

Oracle BI and Siebel CG products to ensure maximizing trade Can have a system deployed in three to six months and can Oracle Perficient is a systems integrator funds spend providing better visibility to customer data have positive ROI within 12 month of deployment

True, open, demand signal repository, developed from Set up for three retailers takes weeks, customers can Microsoft, Oracle, Teradata Accenture, Price Waterhouse, Teradata ground up to harmonize all POS with internal data integrate remaining retailers themselves or hire us to help

Delivers on-demand CRM for organizations that need to RightNow customers start seeing a ROI in as little as DemandWare, Genesys, Lithium, Sterling Commerce Capgemini, Lockheed Martin, TCS cost-efficiently deliver a consistently superior customer 30 days. experience “Fast flexibility,” provides specific and innovative solutions CITTIO, Microsoft, VMWare Sigma Solutions, ShoreTel, Tank Technologies ranging from real-time KPI alerts to on-demand reporting 30 to 60 days and analytics without proprietary software Delivered as service over the Internet; Salesforce SFA’s multi- N/A Astadia, Appirio, BlueWolf tenant platform delivers innovative releases, without the pain Can be deployed in a few months or as little as a few weeks of upgrades, just like consumer Web platforms

SAS supports customers’ business goals by enabling data Varies by customer requirements, including scope of Aprimo, ESRI, Teradata Accenture, CSC, Deloitte Consulting integration, predictive analytics and business intelligence technical and analytical consulting

Includes scorecards for tracking delivery performance, Prescient Applied Intelligence, Revionics, Stratum can be deployed quickly, enabling companies to N/A and tracking customer performance via sales, purchasing Synectics Group immediately benefit from its best-practice applications trends and profitability

Runs on mobile PDAs and tablets tracking field activity Ranges from three to 12 months depending on scope Cisco, DataFlux (SAS Corp), Microsoft N/A including distribution, tasks, audits and surveys and number of integration points

Offers series of intelligent analysis objects and metric Business Objects, MicroFocus, Microsoft N/A templates, allows executives to build key performance 30 to 60 days indicators and response methodologies to act quickly Provides ability to develop and deploy customer event- Time to benefit varies, benefits should arrive within eight Assetlink, Infor, NCR Accenture, BearingPoint, Deloitte Consulting driven and insight-driven dialogues, both planned and to 16 weeks customer-initiated, to any and all consumer touchpoints Vision Chain enables the world’s largest CP companies to Initial use of system in eight weeks, complete SAP, TrueDemand Deloitte Consulting create a single, centralized source of POS, inventory and implementation time subject to requirements internal data to drive product sales at their key retailers.

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THOUGHT LEADERSHIP

THE STATES OF CUSTOMER MANAGEMENT AND ANALYTICS

Industry thought leader Keith Peers, vice president, The key to realizing these benefits however, is to manage all these disparate product marketing, CAS, shares notes on customer technology modules in a single, integrated solution, where integration and data management and analytics challenges and trends. interfaces are minimized and the accuracy of the results are maximized. Find out his expert opinion on the move toward mod- ern marketing outlets; using trade promotion man- Are retailers and CP companies more successful when they collaborate agement as a strategic business weapon; engaging around promotions? How can technology help? in collaboration to ensure promotional success and PEERS: Collaboration among trading partners is a critical success factor in Keith Peers measuring marketing ROI. any business, but even more so in the CP industry, where both manufacturer Vice President, and retailer target the same consumer. As such, the consumer and a true win/win Product Marketing, Companies are moving away from traditional market- result can only be accomplished through a sustainable long-term collaborative CAS ing outlets and are reaching the consumer in non- relationship. The key success factors are really quite simple: traditional ways.What are the benefits and challenges •First and foremost, the willingness to collaborate (truly collaborate) is the of this new approach to marketing? primary success factor PEERS: Traditional marketing outlets like print and television are not as effec- •Given that willingness, understanding and respect for the partner’s mutual tive as in the past because consumers have changed media reception in the business strategies and inclusion of these strategies within the collaborative course of the last decade. However consumer product (CP) companies are look- planning process is also of high importance. ing for innovative ways to interact and collaborate with consumers to improve •The willingness to share data with each other to ensure the outcome of brand awareness, promote brand loyalty and increase overall category effective- planned activities has the highest opportunity for mutual success. Both man- ness. Using the internet to both “push” their messages to consumers and to ufacturer and retailer have access to information that kept separate only pro- “pull” consumers into individual Web sites is a very important vehicle in today’s vide half the picture for profitable revenue and category growth, while marketing programs. maximizing end consumer satisfaction. With a parallel trend towards “clustering” retail stores and reduced format •Finally a collaborative approach to the planning and execution process will size, a focus on specific assortment to meet the demographics within the clus- increase the effectiveness of both manufacturer and retailer business plans. That tered area will create the need for increased targeting of messages to the con- approach should include common business planning, promotion planning, sumer. It will also require technology investment to ensure manufacturers and volume forecasts, spending targets and mix, program execution and evaluation. retailers can effectively manage the level of increased assortments and varying trade promotion programs required to support the consumer advertising. Segmentation has long been a consumer marketing strategy and with these “CONSUMER PRODUCTS COMPANIES industry changes it can be applied in a much more effective manner. A dedicated segmentation strategy that fits into Web-based initiatives and targeted assortments, with the right technology investment, will invariably result in more effec- ARE LOOKING FOR INNOVATIVE WAYS tive trade spending; increasing revenue while maintaining marketing spend levels. For these programs to be effective however, consumer knowledge and pur- TO INTERACT AND COLLABORATE chasing patterns are a must. Technology solutions that effectively manage all consumer manufacturers demand side processes are necessary to maximize WITH CONSUMERS.” —KEITH PEERS, CAS the benefit of consumer marketing and trade marketing programs.

CP companies are leveraging analytics to make their promotional In a collaborative environment, technology acts as an enabler. Technology spend more efficient. What tools can be implemented to improve investments however, should not be undertaken lightly and CP companies should and manage the process of trade promotion management? look to vendors that have a proven track record of implementing large scale, PEERS: Adoption of formalized trade promotion management (TPM) remains global projects that include all demand side business processes in a single, inte- an important consideration in developing technology budgets for CP manufac- grated solution. The implementation of this technology should also be accom- turers. The view of TPM is indeed changing from a tactical method to capture short plished in accordance to the readiness of the organization, including having the term market share or incremental revenue to strategic initiatives to create overall necessary data to implement advanced predictive technology and an organizational category growth and brand loyalty. readiness to embrace the necessary change. The key to realizing these benefits is to change our thinking from investing in a “trade promotion system” and managing trade dollars in a tactical environ- CP firms have struggled to capture the ROI of marketing activities. ment. To realize benefits as a “strategic business weapon” we need to view TPM What metrics or best practices can companies use to gain a true as a piece in an overall “demand side management” system. Demand side man- understanding of the value of marketing activities? agement enables CP companies to manage all their demand side processes in a PEERS: Measuring ROI of marketing programs is achieved through integrated single integrated technology environment. These crucial business processes processes that manage the following: include annual sales and spending planning at various levels of the market and •Business planning including volume and spend targets that can be associ- sales organization, account planning, trade and volume planning, promotion ated with specific marketing programs and specific measurable key perform- execution, retail store management and execution, payment and deduction rec- ance indicators onciliation and management. These transactional processes provide stability and •Promotion management and execution that are also tied to specific market- control over demand side processes. ing programs (consumer and trade), also with specific and measurable key Alignment of advanced business intelligence and analytics within these trans- performance indicators actional processes enables greater business insights into demand side business •Reconciliation of actual results against the plan to understand what worked processes, enabling better decision processes based on historical data. It also and what didn’t enables efficiencies in understanding what trade programs are successful. •Analysis of the key performance indicators to gain insights into the specific Completing the demand-side management processes with optimization is details and general trends to improve future ROI the logical progression of technology sophistication within the CP industry. •Predictive technology to enhance the effectiveness of the marketing pro- Optimization enables companies to use advanced predictive capabilities to sim- grams based on specific key performance indicators ulate and model the outcome of specific events based on analyzing historical Following this approach as well as the use of appropriate demand side man- data and dramatically improve the value and effectiveness of all demand side agement technology, will not only capture the ROI of marketing activities, it processes, TPM being one of them. will also significantly increase the overall effectiveness. CG

30 | CONSUMER GOODS TECHNOLOGY | MAY 2008 | www.consumergoods.com