most cg companies still use disconnected systems, manual spreadsheets, and siloed teams to fund, plan, and track massive trade promotion budgets. This makes it difficult to keep everyone in the loop when things are going well or when they need adjusting. Combined with calculation methods that vary across multiple departments, it becomes impossible for all parties to agree on how much will be sold and, more importantly, how much should be spent.
Brands that have automated their trade promotion management systems on a single platform, however, can achieve impressive results. Our data shows.
redeploying funds to promotions
that work well can increase revenue by 4%.
Making effective trade promotion investments can boost gross margin percentage by up to 5%.
Automating administrative tasks frees up 30% of account managers’ hours, allowing them to spend more time with customers.
Linking deduction management processes to trade programs can reduce unidentified items and write-offs by as much as 10%.
Ditching manual tools and redundant systems can decrease it costs by up to 15%.
Balance traditional and emerging tpm channels
cg route-to-market strategies are complex. The rapid growth of new sales channels and additional points of sale means brands have to balance their traditional in-store tactics with emerging digital strategies. Cg companies that connect in-store and digital interactions provide a seamless user experience (for internal and external stakeholders), which helps them win at the shelf. Our research found that 55% of cg companies have made this a priority.
To make the most of trade
dollars across channels, cg companies need to use first-party and syndicated data when planning their trade promotion strategy. Without an integrated promotional plan, brands may show gains with one customer and losses with another. To get all stakeholders on the same page, cg brands need a holistic view to plan, execute, and assess trade promotions.