The Importance of Integrating Promotion Management Into the Planning Process
What can retailers do to improve their promotion management results? Promotions should be demand-driven and a critical part of a retailer’s go-to-market strategy. Now that advanced planning solutions for areas of the business like inventory and assortment planning are more commonplace, it is important that promotion management is an integral part of the end-to-end retail planning process.
Next-generation promotional planning allows retailers to analyze how promotions have performed in the past. By establishing a baseline for how successful their promotional efforts have been in the past, retailers can then measure against that baseline for future promotions.
Understanding past promotional data enables retailers to accurately forecast demand for future promotions and then tie that into their financials. As a result, they’ll gain a solid understanding of how much they’ll earn in promotional sales over the course of the planning period.
Knowing how promotions have performed in the past will help retailers build more accurate and successful assortments to carry across channels. Retailers that incorporate promotional data into their cross-channel assortment plans will consider not just the products they plan to promote, but also the items that will sell since they are complementary – i.e., tennis shoes and socks.
Integrating promotions management into the planning process also improves pricing decisions. Price changes for products on promotion should be well thought out across all selling channels and integrated with the financial plan so that retailers can attract customers while avoiding unnecessary margin degradation.
A Case Study in Promotion Management – Holland & Barrett
Like many retailers, Holland & Barrett, a health and beauty retailer based in the U.K., was operating a binary promotional strategy which employed the use of 45 separate spreadsheets in which to manage all of its promotional activity. This inevitably led to inaccuracies, an unmanageable workload for its team and at times a negative impact on its customer experience.
Holland & Barrett turned to JustEnough and in October 2015 rolled out its Promotion Management software using JustEnough’s four-step implementation methodology. The implementation was successful and user feedback was very positive.
“JustEnough’s software is the best-in-class promotion management solution; it’s highly configurable and we were able to quickly tweak or add functionalities to ensure it would meet our specific operational requirements,” said Ray Aldis, director of projects, Holland & Barrett. The company is using the solution to monitor live campaigns, manage data conflicts and plan all of its promotional campaigns.
The company is fully up-to-speed on the solution and is seeing real benefits in its overall promotional operations. With three brands that each have 15 promotional periods in a given year, the ability to quickly access a single overview of all the promotional data is a key benefit to the company.
“Now that we can access all of our current and historical promotional and sales data via a single centralized system, it takes fewer resources to plan and execute campaigns and we can instantly create analytical reports to evaluate their success with a click of a button,” added Aldis.
The JustEnough Promotion Management Solution
JustEnough's promotion management solution is the ultimate promotion planning and execution tool - allowing departments to work together to select targeting options, build campaigns and events and plan and manage promotions. It has the capability to create promotion forecasts, create “what if” scenarios and analyze category impact.
Additional features allow merchandising departments to analyze the space they are going to dedicate to an in-store or online promotion, marketing departments to publish promotions to online and offline channels, and advertising departments to effectively allocate budgets across print, online and social media channels to maximize communications with targeted consumer segments.
JustEnough's promotion management solution removes the constraints that limit creativity and innovation, and can lead to increased revenues, reduced costs and improved margins, as departments work together to produce improved promotional product selections, reduced advertising spend and make better use of vendor marketing dollars.