Wednesday, 21 July 2010 11:31

Trade Promotion


Trade Promotion

Considerations

Buying/purchase allowances
  • Offer short-term discounts.
  • Can be deducted from a manufacturer’s invoice.
  • Simple implementation.
  • Preferred by retailers.

Selling allowances
  • For count/recount sales allowances, warehouse inventory must be counted before and after promotion and scanner data is used.
  • For advertising and merchandising, a retailer must perform and proof-of-purchase must be validated. These programs may be cumbersome to administer and retailers may offer some resistance.

In-ad coupons and rebates
  • Brand coupons or rebates are distributed by retailers in local media and store flyers.
  • Funds are reimbursed by brand marketers.

Retailer or sales force incentives
  • Spiffs (sales performance incentive for forcing sales.)
  • Mystery shoppers.
  • Contests.
  • Premiums.
  • Retailers may object.

Slotting allowances
  • Marketers pay administrative costs to stock new products.
  • Failure fees and deslotting allowances.

Source: PMA

Published in Trade Promotion
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Wednesday, 21 July 2010 11:11

Premiums

Advantages of Premiums

  • Can be effective in achieving specific goals.
  • Allow collection of names for marketing database.
  • Provide brand equity support.
  • Can be a motivating part of a loyalty program.

Disadvantages of Premiums

  • Can be difficult to measure sales.
  • May have residual inventories.
  • May require special handling for inventory shortages.
  • Can incur costs for damaged or defecting merchandise.
  • May receive complaints from consumers who did not receive premium.

Considerations for Premiums

  • A premium item should reinforce the brand's image.
  • A premium offer should allow for various redemption methods.
  • An item offered as a premium should be thoroughly tested (establishes liability parameters, provides inventory safeguards.)
  • Marketers should be aware of a premium's exact size, weight and packaging details.
  • Marketers should consider premium mailing options (determine best packaging, determine shipping method, set premium cost.)
  • Marketers should consider domestic versus imported premiums. If imported, allow extra time for production and testing, dealing with customs brokers and securing lines of credit.
  • A premium item should have carefully written ad copy which includes, "while supplies last," offer dates, complete item description, retail value claims, and mail-in address.
Source: PMA
Published in Premiums
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LSC: Brand builders and sales growers for the targeted and tactical.

Our agency excels at designing, developing and implementing sales, marketing and promotional programs.

CPG Trade Development = Look to grow THEIR category and your brand will go for the ride. It's all about sales. Their sales.

by Dave Wohlner Thursday, 17 May 2012 17:30