乌鸦传媒

In this article, we share our learnings on how brand owners can leverage advanced data analytics, trade promotion software (TPx) and other shopper engagement tools to stay out of the red and into the black, as the CPG industry enters a new cycle of category-led growth.

Trade promotion spending is a significant cost item in the consumer-packaged goods sector (as much as 25% of gross sales), yet many companies fail to fully measure the effectiveness of their trade promotions.

This is where trade promotion software can play a massive role in reducing wasteful spending, also known as Red Sales (using a traffic light system to vet which promotions drive real value).  With a predicted market size of $2.3 billion by 2026, promotion tools are a game changer in the industry – but only if implemented properly. Drawing on our experience deploying TPx solutions at scale, let鈥檚 explore what helps make these implementations successful from both an operational and business perspective.

Key learnings in implementing a trade promotion tool deployment programme at scale

1. Balancing autonomy with alignment

To achieve the alignment required to drive the adoption of the trade promotional software, you must leave room for some autonomy from the teams on the ground. The effective execution of these programs relies heavily on balancing effort and empowerment across a variety of roles.

From our experience, we found that the critical above-market roles that drive a successful trade promotion program include the following roles:

Delivery Director

Holds overall responsibility for the project鈥檚 successful execution.

The Delivery Director must be firm but fair, serving as the highest authority within the programme. This authority is particularly valuable when the team needs a 鈥榖ad guy鈥� to enforce difficult decisions 鈥� acting like a parent saying, 鈥淪orry, but this is the rule,鈥� and giving others a diplomatic way to deflect pushback.

Product Lead

Validates market needs and ensures adoption across the organisation.

This product leads are the gatekeepers for change requests, balancing the needs of local markets with the requirement for global standardisation. We learned that their most important skill is stakeholder management, as they are consistently engaging with markets and aligning priorities.

Deployment Lead

Serves as the key point of contact between markets and Product teams.

The Deployment Lead ensures the deployment plans align to the expectations of markets while adhering to the overarching goals. The Deployment Lead must be organised as they manage critical milestones, such as timelines, budgets, and deliverables, and oversees the User Acceptance Testing (UAT) phase as well as post-go-live support.

Engineering Team

Owns technical solution and defines what鈥檚 achievable with current infrastructure.

A key learning for us was the importance of their counsel and the weight it was given from leadership 鈥� when they said “no,” it was a firm “hard-no,” and working with them to determine what was feasible became essential for success.

PMO

Coordinates across teams, manages risks and keeps everything on track.

What we learned is that the PMO鈥檚 role cannot be underestimated and is as crucial to project success as any other role. They are the central point of the project, conducting the various workstreams and driving overall execution. They are the colleague everyone turns to for the latest information.

2. No free passes: the 鈥楤ouncer鈥� approach

One of the key takeaways from our experience was the importance of effective change management and a tough love approach. Scaling trade promotions globally introduces unique challenges, with markets varying in needs, regulations, and consumer behaviors. Markets frequently submit Change Requests (CRs) ranging from must-have issues to nice-to-haves. While aligning with the global vision is crucial, flexibility is key -some markets have stronger business cases for their changes, which allows them to secure larger budgets or have more influence.

To better control this process, we implemented a 鈥榖ouncer鈥� step before the review by the Change Control Board (CCB). At this stage, the Global Business Plan Product Lead acts as the first line of defence – much like a bouncer screening guests at the door of a club. Once approved, the markets meet with the 鈥榗lub owner鈥� at the bar, the Delivery Director, who makes the final call on whether the request is granted. If the process is designed well enough, this should be a bureaucratic step rather than a point of contention. This ensures that requests are legitimate, and markets cannot simply present exaggerated claims, such as cost savings from reduced staff, without providing actual evidence.

3. Shared objectives and an ability to balance short-term KPIs with longer-term objectives

One of the key learnings from our TPx implementations is that clients who embed shared objectives across functions into their performance management framework, such as OKRs, achieve faster and more successful adoption. In contrast, when targets are broken down into siloed KPIs without shared objectives, adoption tends to be slower and less effective.

Another key learning related to 鈥測ou get what you measure鈥� is that the traditional short-term KPIs of sales uplift, margin maintenance, and in-period market share gain are not sufficient on their own to define a successful implementation.  Longer-term metrics allow for the success of the implementation to be evaluated objectively, offering a retrospective view on whether we have seen the expected decline in the percentage of Red Sales (margin dilutive) has occurred, along with an aggregate positive impact on the 6-12 month rolling average market share.

AI raises the bar even further

Integrating AI solutions into trade promotion platforms is the future 鈥� but it鈥檚 not a cure-all. It鈥檚 not just about the technology itself; it’s about building the right governance structure to ensure its success. Without proper oversight and alignment, even the most powerful AI solutions can fall short of their potential.

1st key lesson: Start small

Begin with a single market and use it as a pilot. While this may seem obvious, it鈥檚 surprising how often we鈥檝e seen a proof of concept designed and then rolled out without being tested.

2nd key lesson: Bring the markets along for the journey

Although the pilot may focus on just one market, it鈥檚 not enough to develop a solution tailored solely to that market鈥檚 needs. The solution must be scalable and applicable across regions. Success hinges on aligning the technology with both local and global business objectives. This requires early collaboration with market teams to understand their unique needs and challenges.

3rd key lesson: Managing expectations is essential

When implementing AI solutions, third-party vendors often present bold promises about the technology鈥檚 capabilities. While these solutions can be powerful, it’s crucial to maintain a realistic perspective. While the market teams may be enthusiastic about the potential of AI and envision significant results, it’s the engineering team that must act as the gatekeepers. They ensure that the promises made by vendors align with the technical realities and the company’s existing infrastructure. This balancing act – between excitement about new capabilities and the limitations of what is technically feasible – is key to avoiding overpromising and underdelivering. Once the core processes are identified and understood, AI can significantly optimize trade promotions.

So, is your trade promotion strategy protected by the best bouncer in town?

Just like a great bouncer keeps the right people in and the troublemakers out, a well-governed trade promotion system ensures seamless execution and long-term success. The right mix of structure, governance, and expertise makes all the difference鈥攏ot just during implementation, but in keeping things running smoothly long after go-live.

At 乌鸦传媒, we bring together the right players, frameworks, and processes to ensure your trade promotion software is implemented effectively and managed with precision.

Ready to transform your trade promotion strategy that works today and scales for tomorrow?
Contact us now, and let鈥檚 start building the future together.