Trade Promotion Optimization Using Image Recognition

What is Trade Promotion?

In the CPG industry, “trade” refers to the transaction between manufacturers and retailers, and trade promotion is the cumulative marketing efforts that are executed in stores to increase the demand for the products. Trade promotion takes into consideration multiple factors that have the potential to influence customers like pricing, display fixtures, value-added bonuses, and more.

Trade Promotion Optimization (TPO) is analyzing past performance to create models as a predictor of future performance. TPO is about choosing the best combination for every product, area, and SKU in order to create promotions that are maximized for volume, sales, profit and a plethora of other important parameters within a given budget constraint.

History of trade promotion:

1 Trillion  spend on trade promotion.

2/3rd promotions are ineffective.

Primarily driven by retail sales data, i.e., point of sale data and financial data.

Predicts the total sales and baseline sales by each product line for each retailer..

Traditional Way

The users can choose products, select objectives, and set parameters. The AI then generates a plan optimized to cater to all the requirements.

Modern Way

It involves photo collection, understanding the store floor space, store shelf space, SKU placement & assortment, shelf pricing, discounts and then making recommendations based on real ground-level data.

The Roadblocks in Trade Promotion:

CPG companies spend a lion’s share of their revenue on trade promotions, yet, two third of all trade promotions are considered to be ineffective. Here’s a quick rundown of the perennial roadblocks that stop them from becoming “profitable”.

Manual store audits

Siloed data systems

Lack of accurate, real-time in-store insights

Inability to make data-driven decisions

Competitor cannibalization

Incorrect trade payouts

Lack of real-time field force tracking

“40% of CPG trade promotions spending doesn’t drive the desired results.”

— Nielsen Holdings

Overcome The Challenges With Trade Promotion Optimization:

The CPG space is highly dynamic and fiercely competitive and hence an optimal utilization of time & resources is critical. Trade Promotion Optimization (TPO) is a practice of ensuring profitability by honing the processes and leveraging technologies to ideate, plan, manage and execute trade promotions.

The key components of Trade Promotion Optimization include:

Data capturing and harmonization

Promotion Effectiveness Measurement

Promotion Analysis

Planning

Optimization

Start Your Trade Promotion Optimization Journey With Infilect

Optimize Your Trade Promotions With Infilect

With advancements in Image Recognition powered by Artificial Intelligence, it is now possible to powerfully harness real-time store data, and detect and invest optimal resources in the high-yielding corners of trade promotions.

Input:

Images from the stores

Trade promotions and the corresponding quantity of sales

Volume or value of sales, profits targets.

Output:

Real-time relationship management with retailers.

Massive savings on settlements and deductions: Visual proof and automation of visuals to pinpoint the retailers & stores, by city, by region that are not compliant for each category, brand, retailer, and region on a daily basis.

Real-time feedback on modifying trade promotions: If the competition has better trade promotions, the TPO strategy changes dynamically.

Precise trade promotion recommendations using ground-level data: Understand the store floor space, store shelf space, SKU placement & assortment, and shelf pricing & discounts. Recommendations are made based on ground-level data to track the trade promotions.

Causation analysis: Comprehensive analysis of strategies that worked, the ones that did not, and the underlying cause for the same.

Trade Promotion Analytics

Traditional Analytics

What happened in the Trade Promotion?

What should be the frequency of Trade Promotions?

Where did the promotion go wrong?

Predictive & Prescriptive Analytics

What may happen in the future and what to do about it?

What is the appropriate promotion mix strategy for the 
next quarter?

How to increase the trade promotion ROI?

Introducing InfiViz: The Most Advanced Visual Intelligence Platform By Infilect

Infilect’s flagship product, InfiViz, is an advanced Image Recognition AI tool that helps sales and business leaders of CPG & FMCG brands with real-time and accurate in-store retail execution insights. With its highly trained algorithm, InfiViz can provide predictive and prescriptive analytics to boost trade promotions and add layers of efficiency to the same.

Actionable In-Store Execution Insights in Real-Time

Multi object and Dynamic shelf tracking

AI-driven Sales Recommendations

Automated Store Audits

Real-Time Shelf Metrics with Over 97% Accuracy

Per-Store Level Retail Insights

Proven Efficacy Even in Low Light Conditions

Recommendations For Smarter Assortment Planning

100% Compliance Adherence & Monitoring

Retail Distribution Insights for Both General & Modern Trade

Comprehensive Competitive Intelligence

Get started with Trade Promotion Optimization powered by Image Recognition AI

Proven Impact

2%-5%
per-store
sales growth
30X
ROI on our
solution
~20%
market share
increase
97%
accurate
execution
insights

Trusted by global brands

Infilect customers P&G
Infilect customers ABinBev
Infilect customers Lowes
Infilect customers Britannia
Infilect customers Nestle Purina
Infilect customers Kantar

We Have Scaled Globally!

Deployed Across
16+
countries worldwide
Covers
400K
stores monthly
Processes
25M
images per month
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WHY INFILECT?

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