Trade Promotion Strategies That Work for Consumer Goods
However, you can’t just keep slashing prices without worrying about your profit margins if you don’t have a comprehensive trade promotion management solution in place to plan, evaluate, and anticipate the effectiveness of promotions. Your company may increase its top and bottom lines with the help of promotions if it uses the proper promotional strategies and advice.
This post will talk about some of the best ways for a consumer packaged goods (CPG) company to promote its trade.
Discover a new perspective.
Previous trade promotion management techniques can still be prevalent in consumer product firms; perhaps leading to a biased view of what constitutes a successful campaign. Promotional sales may be badly affected by tracking the wrong metrics or not measuring them at all.
Thus, evaluate the existing state of affairs and decide whether or not you want to go from trade promotion execution and evaluation to best practices and management. Using this method, you may put your promotions to the test and see which ones perform best.
Track the right KPIs.
It is common practice for manufacturers of consumer products to standardize product quantities across regions; and quantify success in terms of retail dollars or shipping dollars. However, it falls short when dealing with things that are sold in different quantities; such as drinks sold by the case and candy sold by the pound.
Transform this into measurements with a trade spend management system that can be used to compare goods with greater ease. Another metric to consider when evaluating the success of a Trade Promotion is the amount of extra money brought in above what would have been made without the promotion. Which metrics you use to look at your promotions as a whole will depend on how your organization works; of course.
Not everything is as it seems.
You can be envious of the new specials that your competition is running, but how effective are they? The most engaging retail displays in the world are useless if the prices remain the same. Sales can be boosted by offering goods at Buy One, Get One pricing; although a larger discount will be necessary for items with a higher retail price. Consumers’ innate judgment allows them to ignore certain advertisements. As a result, you would benefit more from fewer, more meaningful promotions. Identify the option that will have the least negative impact on your company’s bottom line.
Final Words
As trade marketing increases in significance, CPG businesses manage hundreds of campaigns. The rapid growth rate should make it simple to plan and execute effective promotional strategies for your business. Your company may save time and money with the help of a dependable solution that uses a sound trade promotion management framework. The software will help you become data-driven so that you can improve the long-term effectiveness of your trade promotions.
