Use of Advanced Analytics for Trade Promotion Management to Fuel Trade Promotion Management Software Market Growth During Forecast Period
Technological advancements in data and analytics have restructured consumer goods and fast-moving consumer goods companies in recent years. Technological developments such as linking trade promotion to advanced analytics can help in making the future of trade promotions more efficient and effective. Consumer goods packaged companies are using advanced analytics while conducting trade promotion management activities. Through advanced analytics, consumer goods companies obtain much more granular information, generating insight related to shoppers and their consumer behaviors. By utilizing analytics, these companies are capable of driving better returns on promotional investment and customizing investment to line up with overarching strategic goals. Additionally, retailers are highly aware of the benefits provided by trade promotion management as they increase their operating margins by 60% by using efficient promotion strategies and analytics.
With constant improvements, the adoption of trade promotion optimization is also rising. Moreover, the presence of companies offering analytics solutions to make trade promotion management efficient is making a positive contribution toward the market growth. For instance, Neal Analytics is a provider of trade promotion optimization solutions that assist businesses in creating a sales baseline for determining in-around of sales and calculating historical promotion redemption rate, volume uplift, and ROI by utilizing sell-through data and cost factors.
Thus, the use of advanced analytics for trade promotion management is anticipated to fuel the trade promotion management software market growth in the coming years.
Trade Promotion Management Software Market: Industry Overview
Based on component, the trade promotion management software market is bifurcated into solution and services. Based on deployment type, the trade promotion management software market is divided into cloud and on-premise. In terms of application, the trade promotion management software market is bifurcated into large enterprises and small & medium size enterprises. Based on industry, the trade promotion management software market is categorized into retail & consumer goods, IT & services, pharmaceutical, manufacturing, and others. In terms of geography, the global trade promotion management software market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM).
In Europe, industrial sectors are becoming increasingly inclined toward adopting advanced technologies. Moreover, Italy, the UK, and Germany have a major deployment of trade promotion management owing to the large number of e-commerce, retail, and pharma labs. In addition, changing consumer behavior, the emergence of online platforms for buying goods, and the booming retail sector can help in increasing expenditure on promotional activities. Moreover, strategies in the region for promoting products and managing trade promotions are another factor fueling trade promotion management software market size.
APAC is estimated to register a substantial growth rate in the trade promotion management software market during the forecast period, owing to the rise in urbanization. Moreover, there are more than 50,000 convenience stores in Japan, and retail sales in Japan grew by 5.8% year-on-year in September 2023, dropping from a 7% increase experienced both in July and August; this is roughly in line with forecasts for a 5.9% gain. Also, the growing retail & manufacturing sector in the region is another factor contributing to the Asia Pacific trade promotion management software market share.
The trade promotion management software market growth in the MEA and SAM is driven by continuous technological advancements, growing environmental awareness, and the rising need for streamlined operations.
Trade Promotion Management Software Market: Competitive Landscape and Key Developments
Aera Technology; TELUS; o9 Solutions, Inc.; Oracle; SAP SE; UpClear; Anaplan, Inc.; Aforza Inc.; Wipro; and Psignite Inc are among the leading players profiled in the trade promotion management software market report. Several other essential trade promotion management software market players were analyzed for a holistic view of the market and its ecosystem. The report provides detailed market insights, which help the key players strategize their market growth. A few developments are mentioned below:
- In July 2023, PSignite, a leading provider of Trade Promotion Optimization (TPO) and Revenue Growth Management (RGM) solutions, announced an exclusive partnership with Salesforce 360 for Consumer Goods. The goal of this partnership is to provide customers of Salesforce with a TPO offering that integrates with Salesforce’s Trade Promotion Management (TPM) solution.
- In March 2022, Aera Technology announced the debut of Aera Decision Cloud — the next evolution of its open platform to digitize, augment, and automate decisions.
- In October 2020, Oracle Corporation announced the general availability of Oracle cloud infrastructure operations insights. These operation insights enable business executives, DevOps, database, and IT administrators to make data-driven database resource and performance management decisions.