This year, 93% of ceos said they’re focusing on growth. That means the battle for both shopper awareness and retail shelf space just got more competitive.
pricing is forcing consumers to rethink their purchase decisions. At the store level, sustained revenue growth is a challenge: 90% of brands cannot simultaneously growopens in a new window market share, category leadership, and profits. Make no mistake: effective trade promotion management software is key to keeping consumers reaching for your products while achieving profitable growth.
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What is trade promotion management?
Trade promotions help increase demand for a brand’s products in stores by offering retailers discounts, displays, and events that help them market items to consumers. It refers to in-store merchandising and support that helps consumer goods (cg) brands motivate consumers to reach for their products on the shelves.
Trade promotion management (tpm) includes the planning, management, and execution of these promotional activities. Done effectively, trade promotion management can secure additional shelf space from retailers.
Some examples of tpm include:
planning discounts, bundles, and other special pricing offers within retail stores.
Co-op advertising, where cg companies collaborate with retail partners and split costs to promote specific products, including in-store campaigns and ad campaigns.
Slotting fees, which are paid to retailers to secure prominent placement or ideal shelf space within stores.
It’s becoming increasingly important for brands to manage their trade promotion performance more efficiently to increase revenue growth. Cg companies spend up to 27% of their revenueopens in a new window funding trade promotions. Trade spending – estimated at $500 billion per year – is on the rise. And yet, 80% of cg executives are unhappy with the results: up to 80% of promotion budgets failopens in a new window to contribute to category growth.