AFS Technologies Recognized as a Representative Vendor for Trade Promotion Management Solution

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AFS has been recognized in Gartner’s 2017 Market Guide for Trade Promotion Management and Optimization Solutions for the Consumer Goods Industry.

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Consumer goods manufacturers continue to spend a significant portion of their budgets managing promotions and price reductions as a part of collaborative efforts with retail partners. CIOs have many good choices as they work with colleagues in sales and marketing to identify the best solution.

Learn about AFS Trade Promotion Management and Optimization

Efficient manufacturing professionals know that their largest expenditure, Trade Promotion, can’t be successfully managed on spreadsheets, it needs to be managed effectively utilizing a tool that provides a single source of truth. AFS Trade Promotion Management Site.

 

 

Gartner, Inc., “AFS Technologies Recognized as a Representative Vendor for Trade Promotion Management and Optimization”, Analyst(s): Ellen S Eichhorn, Stephen E. Smith, Feb 2, 2017.

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Consumer goods manufacturers continue to spend a significant portion of their budgets managing promotions and price reductions as a part of collaborative efforts with retail partners. CIOs have many good choices as they work with colleagues in sales and marketing to identify the best solution.

Published: 2 February 2017
Analyst(s): Ellen S Eichhorn, Stephen E. Smith

Key Findings
■ Solutions are evolving since the original designs of the 1990s, and some offer a precise focus on categories, brands and customers of interest to the manufacturer.
■ One provider should not necessarily be a deciding factor, as successful deployment requires solutions that accurately support the practices of the target country and local sales group.
■ The availability of advanced analytics solutions has introduced varied levels of algorithmic sophistication.
■ Licensing models vary widely, from named user to percent share of revenue improvement.

Recommendations
Consumer goods CIOs focused on driving growth with sales and marketing technology:
■ Do not assume that deploying a single global solution means you have achieved optimization. With the plethora of SaaS solutions, cost of ownership is minimal. Getting accurate results of promotion tracking and effectiveness is better than deploying one solution to achieve a small portfolio.
■ Ensure your sales, marketing, finance and supply chain organizations are clear and aligned on the goals of a trade promotion implementation. There are many ways to win, and working toward different goals is a sure way to lose.
■ Determine the level of investment that will benefit your organization. There are solutions that will start small and prove their value, reducing or eliminating the need for a significant investment.
■ Be prepared for change management to require a significant effort. Motivate the behaviors that you want to execute by realigning incentives and processes, which may be the biggest part of your implementation.

Market Definition
Trade promotion management (TPM) and trade promotion optimization (TPO) are the processes and technologies that consumer goods manufacturers leverage to plan, manage and execute the activities that require collaborative promotional activity from their retail partners. Collectively, we refer to them as “trade promotion execution” (TPx). The solutions in the market are currently offered either separately or as part of a combined package, and to date, have largely been used to deliver promotional activity in brick-and-mortar locations. To qualify as a full TPM solution, the products should include the ability to enable five customer planning functions, and to qualify as a full TPO solution, the products would focus on enabling four predictive or prescriptive capabilities. These functions and capabilities are outlined in Table 1.

AFS Technologies
AFS Technologies is a large player in the TPx world focused on CPG and food service. Consider AFS Technologies if you are a Tier 1, Tier 2 or Tier 3 company looking for a hosted solution with minimal customization. A partnership with Nielsen, announced in 2016, opened doors to the predictive analytics capabilities previously available only to Nielsen customers. The partnership is significant in that it offers access to Nielsen’s predictive analytics for manufacturers that otherwise don’t have it. It should be noted that any syndicated data source can be analyzed (it does not need to be Nielsen data). Its user interface is well-received, and the analytics capability with AFS Technologies G2 Analytics and optional Nielsen predictive analytics make it a solid contender for many companies. AFS Technologies offers a configurable or scalable solution to service a wide range of client sizes and needs. AFS Technologies states average implementation times of four to five months (in addition to a four-month preparation phase).

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