Optimize Promotions

Alignment of promotion strategies with the needs and business goals of each category - then selection of specific products to be promoted, promotion planning, and event execution & measurement in accordance with this strategy.
 

Again the concept focuses suggests retailers and manufacturers can never reach full efficiency alone with the need for significant data sharing across organizational boundaries to understand fully the benefits and costs relating to promotional work. The savings produced by this concept clearly vary with the extent of promotion in the category. Optimize Promotions may be the most important of the ECR Demand Management concepts for partners to work on because: much promotional activity is acknowledged as wasteful retailers and manufacturers understand promotions are complex to analyse a more thorough analysis of the effect the promotions on consumer behaviour can yield beneficial results.
Assessing promotional effectiveness The assessment of promotional effectiveness is captured in four areas: Defining promotional objectives Promotional production: promotion communication internally and externally is just as essential as the production of special packaging and promotional products Timely distribution and placement of promotions Regular evaluation of the promotions	Assessing promotional efficiency It is important to identify possible efficiency improvements in promotion execution and organization. Improvements are possible in terms of cost reduction or choice of alternative methods. Total costs and revenues should be made clear to better point out any promotion efficiencies. Calculations include specific promotional costs such as refunds, special packaging, displays, trade deals and evaluation costs. Organizational analysis focuses on the cost and efficiency of each department involved in the making the promotion happen, in both the manufacturer and retailer. In addition to the analysis of the cost of the current promotions, alternative promotions and suppliers should be evaluated, as well as undertaking a consideration of internal organization issues like alternatives in personal, departmental and trading partners responsibility and planning procedures. The scorecard looks at the quality of internal/joint promotion planning and evaluation.