1 Trade Promotion in a Volatile Economy May 26, 2010

2 Contents 1. Current Trade Promotion Landscape 2. Best Practices for Trade Promotion Management

3 Trade Promotion Landscape and Best Practices

4 Context for TPM Landscape  Perficient recently conducted a survey that canvassed over 60 CPG companies  This survey focused on three key elements: 1.What new TPM issues companies are facing due to a volatile economy 2.How companies are dealing with these new challenges 3.How the current economy is driving TPM investment decisions  In addition to this recent survey, Perficient has been working closely with customers to find value in a volatile economy

5 Trade Promotion Landscape: Increased Scrutiny on Trade 64% 15% 12% 5% Current Economic Environment's Impact on TPM Program and Tools

6 Trade Promotion Landscape: Investment Rational If you are continuing to invest in TPM solutions, which answer best describes your reason?

7 Trade Promotion Landscape: New Business Challenges What new business problem that has surfaced as a result of the current economic environment are you looking to solve with your current TPM solution?

8 Trade Promotion Landscape: New Priorities and Capabilities What TPM capabilities do you believe take on additional value during a difficult economic period?

9 Trade Promotion Landscape: Impact on Trade Spend 32% 25% 20% 18% 5% What will happen to your overall trade spend as a result of the current economic conditions?

10 Trade Promotion Best Practices: Customer Profitability  CPG Companies continue to build and enhance their capabilities for driving go-to- market guidelines and profitability targets down to the field  Integrated analytics to support: –Profitability Analysis –Scenario Planning  Automated workflow to help foster compliance and control

11 Trade Promotion Best Practices: Price Optimization  Successful companies are seeking to leverage flexible pricing strategies based on the latest market conditions –Aspiring to be less re-active as it relates to pricing strategies  Capturing retail pricing data is paramount  Pricing optimization models are not just the domain of statisticians anymore  Better tools available for price modeling and what if scenarios

12 Sales Forecasting and Consensus Driven Planning Historical Demand Planning Relationships

13 Sales Forecasting and Consensus Driven Planning Industry Trend: Consensus Amongst Stakeholders and Active Participation of Sales

14 Trade Promotion Best Practices: Sales Forecasting and Consensus Driven Planning  Better data available to drive collaborative planning and consensus forecasting processes  Improved technology offerings can reduce time associated with consensus driven forecasting processes  Boardroom support for improving forecasting and demand planning has increased from 50% five years ago to 65% today 2 2 Institute of Business Forecasting and Planning, Anish Jain

15 Questions?

16 Thank You.