Scorecard Concept Description

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Guide to ECR concepts

Demand Management

Supply Management

Concepts

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Demand Management

D4. Optimize Promotions

	Score	0	1	2	3	4
Concepts	General Meaning	Nothing Planned	Plans agreed but have not yet started implementation	Pilot tests being conducted	Roll out of implementation started	Fully Implemented
Promotion Planning	The development of joint trading partner strategic (Demand Generation) promotional programs consistent with Category/Corporate objectives.	No structured program, ad hoc deal based arrengements and no joint efforts.	Plans underway to develop a comprehensive joint promotional program. Promotions primarily driven by historical practices.	Promotions planned further in advance with some Category considerations and with input from trading partners, although still the exception rather than the rule.	Regular joint promotional planning meetings are held to establish promotional plans consistent with category objectives.	Cross-category considerations are incorporated into promotional program. Plans are developed 9-12 months in advance.
Promotion Execution	The process to translate the promotional plan into efficient/effective implementation.	No consistent process exists, with frequent changes and little consideration of lead time.	An implementation process is being developed to formalize the promotion execution program and some efforts to coordinate promotion execution.	Some efforts to implement an effective promotion process are undertaken and pilot tested.	A promotion process has been implemented and is usually followed. Inventories have decreased. Forecasting accuracy has improved. Costs are reduced and consumer value starting to improve.	A highly effective promotion process is routinely used. Forecasts are accurate. Inventories and costs are well managed. Consumer value and business results significantly improved through new and innovative promotions.
Promotion Evaluation	The degree to which promotions are evaluated jointly against a common set of objectives.	No efforts to evaluate promotion results or the promotion costs.	An understanding exists of the need to measure promotions and their costs. Some basic analysis is routinely conducted.	Promotions are evaluated based on a traditional costs and volume basis. Some reviews with trading partners are conducted.	A broader set of results and process measures are evaluated related to category objectives. Joint reviews with trading partners include consumer data.	An agreed set of measures are evaluated jointly by trading partners and related to the category and corporate objectives. These targets are routinely being met.

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