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Economic Calendar. P: R: 4. More importantly, effective promotions help retailers compete more effectively by driving shopper traffic into their stores and away from their competition.
This is the greatest bargaining chip any brand can offer a retailer. Savvy brands leverage their ability to drive retailer sales when they negotiate with retailers for premium shelf space, incremental merchandising opportunities, etc.
Here are eight strategies to help you maximize your trade marketing. Most companies repeat promotions annually in addition to copying competitor promotions.
Companies that have creative strategies typically have greater success growing sustained sales. Effective promotions encourage incremental and impulse purchases.
Co-promote within the brand and with complimentary items such as chips and dip when possible. The ultimate goal is to increase consumer purchases after the promotion ends.
This occurs when new customers become committed loyal shoppers. Every promotion should have a well-defined and understood purpose. Design promotions around opportunities to build your brand such as important causes Earth Day, back-to-school, etc and product demos.
Don't promote to give your product away. My favorite example is a large potato chip manufacturer that continually has BOGO's buy one get one free during the major sporting events and on holidays — occasions consumers would probably pay a premium.
Category leaders should instead schedule deep promotions when category buying is low. Most promotions fail to connect with the shoppers.
Build a strategy around your consumer's specific needs and wants. Communicate a consistent message across all marketing vehicles by integrating sales strategies through different mediums including and especially social media.
Be prepared to support the promotion by having additional product on hand. Use category management principles to accurately predict consumer takeaway and to identify the ultimate promotion price point.
Out-of-stocks are a huge problem for some brands. Never miss a sale due to poor planning on your part. Also, a few cents off in either direction can dramatically affect consumer take away.
Account for all costs including deductions, retailer fees, scan down rate, bill back, missed sales due to out-of-stocks, off-invoice rebates, menu fees, fixed costs, forward buys and miscellaneous costs when evaluating promotion effectiveness.
Include retail, distributor, broker, and supplier execution in your evaluation. We do this not to make a profit but in an attempt to start building those relationships.
It builds trust and it gives our customers the chance to see the high-level research we conduct, the clear, honest information we provide, and a chance to experience our track record of success.Most promotions are ineffective and fail to encourage new shopper trials - the primary goal of every promotion. 8 strategies maximize your trade marketing. Thinking of your next trade? Discover the latest forex trading tips and see what forex strategies our expert analysts are following this week.