I have seen the future of trade promotion management, and it’s a smartphone… specifically, the iPhone. As Apple prepares to introduce the new 3G model with faster internet access speeds, their new “developer tools” offer the opportunity for TPM solutions providers to easily develop an interface for their web-enabled software to display and allow interactive TPM file updates. In a few words, this means that promotions could be DIRECTLY entered into the master TPM system while you are with your customer, approved, and finalized…all in one single step. Furthermore, field supervisors could review and approve promotions in just a few moments without going thru the corporate server to access the tools.
Seriously.
The Apple iPhone is just is the most elegant solution, but other smartphone PDA’s can do the job as well. We’ve all seen the TPM process and tools improve exponentially in the last few years. The “personal technology tipping point” has now been reached, so expect to see these systems advance and converge even more rapidly in the coming 12-18 months.
But just because tools are available, it doesn’t mean that they will be adopted in foodservice. Internal and outsourced TPM solutions have been available for foodservice manufacturers for over a decade. And yet studies show that a majority of foodservice organizations do not feel that their trade management “solution” provides them the information they need to effectively address their promotional spending, let alone get down to a P&L by customer.
The dichotomy is that the last decade has seen manufacturer margins rise, raw material costs drop, and technological tools abound. Yet foodservice divisions have not invested in tools to help them manage better. Now, with the economy turning, there is even more risk aversion, over-analysis, and internal focus than ever. Yet without improvements in trade promotion management, some companies may not survive.
George Burns was once quoted “If I known that I would live this long I would have taken better care of myself.” Too bad foodservice manufacturers haven’t taken better care of themselves.