STAY AHEAD OF THE COMPETITION IN YOUR MAJOR ACCOUNTS

www.wipro.com/promax

STAY AHEAD OF THE COMPETITION

IN YOUR MAJOR ACCOUNTS

LAUNCH PROMAX PX FAST START - RAPID IMPLEMENTATION,

PRE-CONFIGURED TRADE PROMOTION MANAGEMENT

www.wipro.com

Table of contents ______________________________________________________________________________

3 ………………….Background

4 ………………….The cost of doing business with the major retailers

4 ………………….The Spreadsheet Challenge

5 ………………….The Opportunity

5 ………………….Getting it right

5 ………………….The Solution

6 ………………….Introducing Promax PX - Fast Start

6 ………………….The Future

6 …………………..Promax PX - Fast Start TPM/TPO Journey

7 …………………..About Wipro Promax Analytics Solutions

Background

______________________________________________________________________________________

As any Trade Marketer or Key Account Manager knows - when the

majority of your business is funnelled through a few major retailers it

can make for a very high pressure environment. The dominance of

these major accounts can often put intense pressure on the supplier

with the constant threat of products (or entire brands) being delisted

if suppliers don’t meet the increasing demands for trade funds. The

result can mean diminishing supplier margins which are unsustainable.

We’re all familiar with Pareto’s 80/20 rule - you know that

broadly 80% of your sales comes from 20% of your client base

and 20% of your product range represents the majority of your

sales. With sometimes as few as just three retailers representing

a significant share of your business, managing this grocery channel

effectively and efficiently is critical.

In modern trade markets, the amount of Trade Funds spent in

major accounts such as Wal-Mart and Kroger (USA), Carrefour

(France), and Woolworths, Coles and Metcash (Australia) often

makes up the lion’s share of your total trade spend budget. In the

more traditional and emerging markets such as Asia and EMEA

where they have a large quantity of “Mom & Pop” stores, the

route to market and fragmented promotion costs through various

wholesalers is the more dominant factor when considering trade

funds. As with any significant investment, you want to make sure

that you are spending this money wisely to maximise ROI and to

protect and grow the relationship with these highly influential and

valuable customers. Given the nature and complexities in the

global retail market place its imperative that the supplier has the

ability to track, predict and control their trade spend.

With so much money at stake and the potential risk to revenue,

fair trading regulations in relation to dealings between supplier

and retailer are under heavy scrutiny. Competition regulators

around the world such as the ECA (European Competition

Authorities), ICN (International Competition Network), the

United States Robinson-Patman Act and the ACCC (Australian

Competition and Consumer Commission) are paying close

attention to this area.

03

A new research report commissioned by KPMG and the

Australian Food & Grocery Council revealed that the

food and grocery sector had been hit with steep

increases by the number of discounts and rebates

demanded by retailers. It found that supplier costs in

rebates, discounts, promotions and shelf fees increased

by 20.4% over the last three years, this having a bigger

impact on suppliers than the costs of goods and labour.

The cost of doing business

with the major retailers ________________________________________________________________________________________________

In such a competitive and major retailer saturated environment,

recent trends have shown that European Union, United States,

Latin American, EEMEA and Australian retailers have sought to

expand their retail offer into areas such as liquor, fuel,

newsagency, pharmacy and other segments previously the domain

of speciality businesses. This has altered the effective wholesale

market shares in the grocery food market in certain areas and

changed the dynamics for suppliers to certain product sectors,

ultimately empowering retailers with even greater buying powers

to negotiate high margins and demand more trade funds.

Figure 1 below provides a comparison of the costs of doing

business and gross profits over a three year period as a

percentage of sales for a variety of international retailers.

While the grocery channel can at times place pressures on the

supplier, it does represent a significant opportunity if you are

armed with both retailer and supplier key metrics in order to put

forward compelling deals.

Typically the retailer will firstly evaluate the increased margin and/

or the sales volume a promotion will deliver. They may also

consider whether the proposed promotion will draw new

shoppers into their store and therefore potentially spend more

money buying multiple items. They may ask:

• Is the price discount attractive enough to steal market

share?

• Are there complimentary products that will also see a

surge in sales as a result of the promotion?

• What is the forecasted ROI?

If the Key Account Manager has all this information captured in

one tool as well as providing them their own key metrics, he/she

can put forward a very convincing proposal that also positions the

supplier as a preferred and trusted advisor.

04

Key:

• WW Woolworths Australia

• Wmart Wal-Mart USA

• Wmart Int Wal-Mart outside of USA

• Kr Kroger USA

• Alb Albertsons USA

• Car Carrefour France

Figure 1

Multiple studies have been conducted over the years on the world’s

best selling spreadsheet software and the results show that almost

90% of spreadsheets contain errors! A professor of IT Management at

the University of Hawaii found that “in large spreadsheets with thousands of formulas, there will be dozens of undetected errors”.

Whilst we all agree that spreadsheets are a powerful tool and reasonably robust, the real challenge is that anyone can create a

spreadsheet and therefore it is prone to a multitude of sins. Firstly there is no audit trail in what numbers or formulas have been changed,

when they were changed and by whom. There is also no easy way to test that the spreadsheet is working accurately. In a nutshell,

spreadsheets are not always created by people who understand programming well and often there are multiple contributors to the

development of a spreadsheet so not everyone follows the same methodology and the design and flow of the spreadsheet can become

fragmented.

The Spreadsheet Challenge _________________________________________________________________________________________________

Embracing new technology can sometimes be a daunting process with Senior Management demanding a low cost, rapid implementation that

results in little disruption to the business and an immediate return on investment.

At Wipro Promax Analytics Solutions (WPAS), we understand the key

drivers as we have been specialising in Trade Promotions Management

(TPM) and Trade Promotion Optimization (TPO) solutions and

implementations for over 24 years. With more than 60 instances of the

solution successfully implemented around the world, our team of TPM/

TPO experts know exactly what’s required to get the job done.

WPAS have a variety of customers in different industry verticals (including

Consumer Goods products such as Food & Beverage, Household Goods

& Hardware, Healthcare & Life Sciences and High-Tech Manufacturing).

Promax PX is also scalable to suit different company sizes and structures,

so we appreciate that everyone’s needs are different.

The Solution ________________________________________________________________________________________________________________________________

The Opportunity ____________________________________________________________

Knowledge is power, so the ability to capture all the data in one

repository that has the ability to interface with your ERP system

is crucial.

Whilst an in-house spreadsheet approach that attempts to

capture data from ERP application data dumps have some

benefits, they are not designed to manage the complexities and

nuances associated with managing promotional plans for complex

product ranges and account hierarchies. With companies

spending upwards of 25% of the Gross Sales Value (GSV) on

Trade Spend, it’s important that you have the right tools and

processes in place.

When it comes to spending millions of dollars on Trade

Promotions, the last thing you want is inaccurate data. It is

imperative that the numbers are right and that there is visibility to

all stakeholders in the business of the effectiveness and efficiency

of your trade promotions.

A seamless, integrated approach to promotion planning eliminates

costly compromises & helps Consumer Goods (CG) companies

take advantage of data to greatly enhance the productivity of their

trade promotion dollars. A unified trade promotion planning

business process is anchored in an integrated technology

platform. Solutions such as Promax PX are closed loop solutions

that enable meaningful interaction among all the different business

functions that are affected by trade promotions planning and

execution processes.

Getting it Right

With a closed loop Trade Promo�ons Management solu�on you

will ensure:

• You have an efficient process with good visibility and

control of your promo�onal plans and trade spend.

• The key stakeholders have a be!er understanding of

promo�on dynamics enabling them to mastermind

promo�onal plans with greater insight.

• The organiza�on achieves a be!er u�liza�on of trade

spend - delivering be!er financial outcomes.

• A be!er understanding of the retailer performance and

the ability to deliver promo�ons that are beneficial to

your valued customer, escala�ng you to become a trusted

advisor rather than just another supplier.

• The ability to leverage the key data such as Point of Sale

(POS) of Syndicated Data to create meaningful insight to

drive be!er ROI from your trade spend.

05

Introducing Promax PX -

Fast Start ____________________________________________________________________________________________________

Fast Start represents a low cost, swift way of implementing a

functionally rich Trade Promotions Management solution such as

Promax PX. Where many implementations can often stall is that

the company is trying to build an application from the ground up

and tailor it to every unique process in the business. With Fast

Start you can empower your team to stay focused on securing

the deals and leave TPM to the expertise of Promax.

As the Promax PX application has been built to meet the needs of

a broad cross-section of company structures, sizes and industries,

we can offer a pre-configured template approach.

The key benefits of a template approach are:

• It can be a catalyst for embracing proven and commonly used

best practice business processes within the Trade Promotions

space.

• It gives you access to a proven functionally rich and advanced

TPM solution.

• It streamlines the implementation approach - ensuring that

the business doesn’t get distracted by extended

implementation teams and detailed implementation processes.

The Promax PX - Fast Start approach combined with the Wipro

SAAS offering means that you will be able to:

• Reduce the load and demands placed on your internal

resources and IT teams.

• Minimize the upfront and overall project costs.

The Future

Adopting Promax PX - Fast Start doesn’t only mean that you can

get access to Promax PX quickly - it also opens up an array of

services and products:

• Additional functionality such as Strategic Planning and

Budgeting can be activated when the business is ready.

• Advanced modelling & forecasting services can be provided -

this allows sophisticated statistical models to be incorporated

and used when planning promotions utilising Promax PX

advanced predictive capabilities and Wipro’s Advanced

Statistical Modelling Services.

• Advanced Reporting and Analytics can be established -

allowing flexible user reports and analysis. Having all the

information centralized means that the business can enable

intelligent data analysis.

• Extended use of Promax PX to other Account Hierarchies.

06

Promax PX - Fast Start TPM/TPO Journey ____________________________________________________________________________________________________________________________________________________________________________________________________________

The inevitable questions?

• How long will a TPM project implementation take?

• What resources do I need?

• How much will it cost?

• How do I present the business case?

About Wipro Promax Analytics Solutions

______________________________________________________________________________________

Wipro Promax Analytics Solutions (WPAS), a Wipro Group Company, is a world-leading specialist in Trade Promotion Management,

Forecasting & Volume Planning, Customer Account Planning & Budgeting and Modelling & Trade Promotion Optimization. With headquarter

operations based in Australia and offices in North America, United Kingdom, Central Europe, India and New Zealand, WPAS boasts an

impressive stable of global consumer goods companies. Promax solutions are the result of more than twenty-four year’s experience working

in close collaboration with leading consumer goods manufacturers, retailers and distributors.

The Promax PX solution has been designed to allow a seamless, automated process to Track, Predict and Optimize promotions and trade

spend. It incorporates the most sophisticated tools to maximize a client’s return on trade spend investment, and deliver optimal outcomes

for retail partners.

WIPRO LTD., DODDAKANNELLI, SARJAPUR ROAD, BANGALORE - 560 035, INDIA.

TEL: +91 (80) 2844 0011, FAX: +91 (80) 2844 0256.

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TEL: +1 (404) 495 3215, FAX: +1 (404) 949 0869.

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Tel: +44 (207) 432 8500, FAX: +44 (207) 286 5703