Demand Shaping
Business Challenges
During New Product Introduction (NPI), 80% of the NPI fail due to their inability to identify the right launching methods, predict sales level and performance, and measure the gap between the planned and actual demand. In these cases, there is usually no allowance for adjustments if needed. Very often, companies try to duplicate previous promotions with manual adjustments, but this lacks accuracy and effectiveness.
When companies identify gaps between their budget and the latest demand plan, they need to use different tactics to reach their business targets. New product introduction (NPI) and Trade promotions are the two major tools that help to shape the demand and achieve desired objectives.
Bloom Demand Shaping Solution
There is a solution to all demand-shaping-related business challenges. Bloom Trade Promotions X (TPx) and New Product Introduction (NPI) solutions, part of the FuturMaster Bloom platform, are exactly the tools for you and your company. Bloom TPx stands for Trade Promotions Planning, Management, Optimization, Execution, and Analysis. It transforms the management of promotional activities to achieve the sales and financial objectives of the company.
Relying on Machine Learning (ML) algorithms at its core, Bloom TPx drastically improves companies' ability to predict the uplift of promotions by leveraging the sales data of past promotions and all collectible data linked to the promotions. AI-augmented Bloom TPx also calculates and predicts the effects of cannibalization (direct and indirect) and determines the delivery profiles of each promotion. Predicting promotional effects on sales volumes makes it possible to estimate the performance and return on investment of promotions in advance and thus facilitates decision-making
Differentiators
Understanding Customer Behavior
The customers are usually solely in charge of demand; however, with Demand Shaping Solutions, that has changed. They can help analyze customer data, identify ongoing trends, and record sales patterns, all thanks to the Machine Learning ability of these solutions.
Influence The Demand
You no longer have to study the demand, but you can now create it yourself by developing the right promotion or NPI to reach the business objectives. With the strategic implementation of all necessary demand-shaping practices, you can influence demand and make the difference you want to see
Monitor The Performance of Trade promotions and NPI
Make your supply chain more profitable by monitoring all feedback from new product introductions (NPI) and also the performance of trade promotions. It also allows you to take certain collectible data like the products’ attributes, promotions mechanics, retailers’ attributes, timing, etc. This way, you can adjust strategies and plans if needed.
Key Features
The use of Artificial Intelligence (AI) to predict the additional volume of demand generated by the promotion and calculate profitability in real time
Clustering to identify sales patterns from previous and present records
Manage collaborative inputs in the demand shaping processes
Monitor the demand-shaping initiatives to be able to adjust the strategies, if needed
Record keeping for future planning and implementation of useful tactics
Analytics to be able to monitor and analyze post-demand shaping activities
Demand Shaping at Its Finest with Bloom TPx and NPI
When it comes to promotional activities, companies struggle to identify certain things and answer salient questions like: What is the most relevant promotion for each context? What additional volumes does a promotion bring? What is the ROI of each promotion considering the investments, the additional volume, and the effects of cannibalization?
Bloom TPx and NPI solutions leverage past NPIs to identify sales patterns during the launch period and predict sales behavior. This puts the company one step ahead in the market.
Also, by relying on ML algorithms, companies can predict the NPI performance to choose only those which will be successful. This allows them to adjust the plan if necessary
KPIs- Your Markers for Demand Shaping Success
These Key Performance Indicators help keep you in the loop and help you achieve maximum benefits from demand shaping processes.
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