Trade promotion management is defined as the process of
planning, budgeting, presenting and executing incentive programs which occur
between the manufacturer and the retailer to enhance sales of specific products.
For example, a manufacturer paying a retailer to feature their product in the
retailer’s weekly newspaper advertising or paying a retailer to build a special
promotional display in their store are both considered trade promotions.
1. Can you easily identify profitable promotions, and do you have
a clear understanding of their true economic and strategic contributions?
2. How well do you understand the underlying strategic
considerations that are influencing your customers to help better define and implement promotions,
including retailers’ brand-label promotions?
3. Do you understand what you need to do to help increase the overall performance of your
trade
promotion programs?
4. Do you know how your performance compares to that of your
competitors?
5. How do your accounts perceive your responsiveness and understanding
of their needs related to promotion?
6. Do you have a clear picture of all the various ways in
which your organization interacts with your customers during a promotion?
7. Have you aligned your measurement and reward systems with how well your trade funds are
allocated?
8. How do your accounts perceive the value of the relationship that they have with you?
9. Have you established mechanisms for jointly establishing trade
programs with your customers, and do you regularly measure performance relative
to these targets?
10. Have you taken advantage of best-in-class programs developed
outside your geography or region?
Failure to have the
right product on the shelf at the right time can result in missed
opportunities. In many cases, this is due to a lack of consumer insights. An
understanding of seasonality and
cannibalization can help you plan for optimal timing and sequencing of
promotions.
Asset utilization:
Many companies feel that they get little to no incremental value
from trade promotio
ns. What you need is more predictive forecasting of volumes and trade promotion spend. Linking this information to key performance indicators (KPIs) can help you plan the right promotions to realize a better return on space
Manual data analysis processes:
As data complexity increases, using manual processes can
cause you to waste time and miss opportunities. Reducing administrative time
can, in turn, reduce your operational costs and also allow for a more nimble organization.
You can understand and modify plans and
promotions to help improve results.
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