Boosting the Bottom Line Through Improved Trade Promotion Effectiveness
For most companies, trade spend constitutes 10-20% of sales and is the second largest item on the P&L behind cost of goods sold. Yet, despite the financial and strategic importance of trade spend, many companies do not fully leverage their investments in it. Trade promotion spend can be optimized to transform it from a drain on ROI into a significant bottom-line booster. The key is to integrate analytics, systems, processes, and organizational capabilities in order to improve trade promotion efficiency.
Shelf-Centered Collaboration
Moments of Choice: Driving Profitable Growth with Shelf-Centered Collaboration uncovers - with real world insights - how retailers and manufacturers can partner at the shelf for their mutual benefit – and for the benefit of the consumers they serve. This book details how the emerging strategy of Shelf-Centered Collaboration works by discussing sources of growing complexity and current challenges and successful collaboration deployed across industries and partners. From partnering at the point of sale, to creating impactful trade promotion programs, this book reveals how partners are shifting from the “mean” to the “meaningful”; from aggregated sales figures to a granular understanding of their customers.
The End of Trade “Spending”? Two New Approaches Can Recoup This Investment
Thanks to two specific changes in the way manufacturers are approaching their retail partners, the days of trade spending as a losing investment may be giving way to an era in which trade investment is a win-win. These changes involve bringing partnership to funding via integrated Customer Development Funds (CDF) and differentiating trade spending across partners via Tiered CDFs. These approaches allow manufacturers to optimize customer funding and drive desired customer behaviors.