Trade Promotion is typically the second largest expense line on our client’s P&L after Cost of Goods. Trade spending has skyrocketed in the past decade from 13% of gross sales in 2000 to 20% of of gross sales in 2014. This has forced many consumer goods manufacturers to cut back on advertising, consumer promotion, and R&D investment to help fund this increased trade spending. In addition, the Promotion Optimization Institute reveals that manufacturers are experiencing diminishing sales lifts from their trade promotion outlays in recent years due to poor compliance rates and lower quality merchandising.
Does Your Business Qualify For This Big Opportunity?
In a nutshell, trade promotion optimization is a huge opportunity for most manufacturers; and it has many pitfalls. If you can’t answer yes to all these questions, trade promotion optimization could be a big opportunity for your organization:
- Does your trade spend deliver a positive return on investment?
- Do you measure every dollar invested?
- Does your sales team effectively plan, execute, and measure results achieved?
- Is there a process in place to accrue, allocate, and manage trade budgets?
- How are decisions made relative to trade budgets? Who approves?
- Is there a process in place to effectively handle claims and deductions?
The Winsights Marketing team can help you identify ways to realize better trade promotion efficiency. By using advanced marketing analytics, we can help identify your good trade spends from the bad ones. In many cases, this has helped our clients save millions of dollars in inefficient trade promotion spending.
Ready For A More Efficient Way
To Administer Your Trade Promotions?
Are you still tracking your trade promotion spending on labor intensive Excel spreadsheets? A recent study indicated that 52% of consumer goods companies still use Excel for administering their trade promotion programs. We can help you evaluate and select a cost effective trade promotion management software package that can greatly enhance your ability to plan, administer, and evaluate your trade promotion programs and events. Our trade promotion optimization process is best summarized by the illustration below:
Don’t Miss This Opportunity To Improve Your Business.
Find out how our trade promotion optimization knowledge and expertise can help you identify opportunities and increase business efficiencies. Contact us today at (813) 635-6013 to discuss your unique needs.