According to the new research report titled “Trade Promotion Management Software Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to grow from US$ 970.8 million in 2020 to US$ 2,157.3 million by 2028; it is estimated to grow at a CAGR of 10.9% from 2021 to 2028.
Trade promotion acts as a marketing tool and therefore is a part of revenue management, which indicates marketing campaigns for retailers/wholesalers. Use of best-in-class trade promotions strategies by consumer goods companies have a potential to give five times better results than earlier trade promotions methods. These companies across the world invest nearly 20–23% of their top-line revenue in trade promotions annually that is creating a need to evaluate whether the trade spent meets an objective of maximizing return on investment. In respect to expenditure, the consumer-packaged goods companies have increased their spending on trade promotion to handle diminishing customer loyalty and private labels growth. This factor propels demand for efficient trade promotion strategies and plays a positive role in creating development of software for managing trade promotions. Consumer goods manufacturers face pressing trade investment requests from their retail partners to drive an increase of both revenues and margins.
Moreover, fragmenting sales channels; dynamic consumer behavior; rising focus of retailers on private labels; changing retail formats by introducing new channels such as gas station forecourts, convenience formats, e-commerce; and arrival of small and fast-moving competitors are among the factors creating demand for efficient trade promotion management among large and well-established consumer goods companies to remain in the competitive market. The end-user companies executing trade promotion strategies and optimization consume less time and resources for collecting consumer data. The trade promotion management software also helps in using trade funds in an ideal way to have greater visibility to ROI. By using trade promotion strategies, both CPG manufacturers and retailers enhance ROI on their trade-promotion investments. Furthermore, increase in the adoption of trade promotion management would eventually boost the demand for software to manage all functions effectively during the forecast period.
The trade promotion management software market is segmented on the bases of deployment type, application, end-user, and geography. Based on deployment type, the market is bifurcated into cloud and on-premise. In 2020, the cloud segment accounted for a larger market share. In terms of application, the market is bifurcated into SMEs and large enterprises. In 2020, the large enterprises segment accounted for a larger share in the market. Based on end-user, the market is segmented into retail and CG, IT and services, pharmaceutical, manufacturing, and others. In 2020, the retail and CG segment accounted for the largest share in the market. Geographically, the global Data Center Cooling market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, APAC accounted for the significant share in the global market.
The trade process is subjected to be technology-enabled. At present scenario, spreadsheet and excel are used for preparing the budget of trade promotion activities. To optimize promotion expenditure incurred by end user companies, need of a software is rising. The requirement of the software is growing as it collects and interprets promotional data completely and draws valuable insights such as incremental lift; ROI; total volume; and funds spent on consumer goods, sales people, and marketing. As a result, the use of connected process platform comprising processes such as planning, trade, retail, finances, budgeting, and distribution is expected to rise in coming years.
Also, the consumer goods companies with continuous development have an opportunity to include capabilities in trade promotion planning by executing stable and server-based trade promotion management solution or hybrid solution between on-premise and cloud-based applications.
Key Findings of Study:
The global trade promotion management software market is segmented into five major regions—North America, Asia Pacific (APAC), Europe, the Middle East & Africa (MEA), and South America (SAM). Moreover, significant strategic initiatives are being taken by several market players. For instance, in 2021, Oracle Corporation announced the general availability of oracle cloud infrastructure operations insights.