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•White Paper: Real-Time Promotion Execution

OATSystems, Tyco ADT And Intel Increase Promotions Effectiveness With A High-Return Usage Of RFID

Retail trade promotions are a massive expenditure with multiple problems and widespread dissatisfaction. Real-time Promotion Execution (RPE) is a new, RFIDcentric business process that enables consumer products manufacturers and retailers to dramatically increase promotion effectiveness and sell-through. OATSystems, Tyco ADT and Intel have joined forces to deliver deployable RPE solutions that increase sales.

Trade promotion spending by manufacturers is a massive budget item, representing 12%–15% of sales for most companies. Unfortunately, study after study — as well as the day-to-day experiences of manufacturers and retailers — shows that the returns on trade promotions are far less than satisfactory. The primary problem is execution at the store level, where there are many opportunities to fail: promotion displays that don't get delivered to stores; displays that don't get moved to the sales floor until well after the start of the promotion period; and stores that pre-sell promotion inventory, leaving no inventory to fulfill the promotion uplift. Added to this is a serious lack of visibility into in-store execution and sell-through related to the promotion. The execution of displays is generally measured by in-store audits which are expensive, slow and cover only a fraction of the stores in a given promotion. A National Association for Retail Merchandising Services study found that retailers are only achieving a 56% compliance rate with promotions. Twothirds of retailers believe they are not getting a fair return, and 91% of manufacturers believe trade promotions are ineffective.

Given the high stakes and low satisfaction, it's not surprising that manufacturing and retail decision makers are very interested in improving the situation. One survey of corporate and IT leaders indicated that promotions management was the #2 technology priority (after pricing management) and the #1 priority for testing or launching new programs3. The potential gains are significant: improved uplift and increased incremental sales, decreased costs, and greater shopper satisfaction.

Click Here To Download:
•White Paper: Real-Time Promotion Execution