What is trade promotion optimization (TPO)? | HCL Technologies

TECHNOLOGY Q&A

Consumer Packaged Goods (CPG) Sales Planning and Trade Promotion

What is trade promotion optimization (TPO)?

Trade promotion optimization (TPO) is the process of utilizing integrated goals, factoring in promotion (e.g. price, duration) and supply constraints, and predictive analytics to create continuously improving trade promotion strategies and results.

TPO requirements include:

  • Aggregate volume planning and predictive modeling (V, S, P)
  • Fund allocation predictive modeling and optimization
  • Account team event and calendar predictive modeling and optimization
  • Post-event causal decomposition and performance reporting
  • Applied learnings, course correction, and continuous improvement