There’s a lot of confusion around trade spending tactics.
What are they? And which one is the best one that NO ONE is talking about?
First, let’s define each.
When gaining distribution or through the annual planning process, a brand must decide whom to promote with, how much promotion is “required” to merely stay on the shelf, and where best to spend any additional promotion dollars to deliver maximum growth and profitability.
The distributor and retailer have zero downsides when purchasing more than they need. Why? Because of something called deductions - in the form of Spoils, Expired Products, Product Loss Claims (PLC), etc.
So after 16 years in CPG, I know one thing… retail is a difficult journey. The cards are stacked against you as an emerging brand. It feels like Vegas…the house always wins. And the emerging brands feel like they only have two choices:
1. Pay to Play and stay on the shelf (Big flashing ATM sign on your forehead)
2. Say no and get discontinued
There’s got to be a better way. I believe that to get the most out of your trade spend, you have to measure the things you’re using it for, and then be able to analyze that data. And you need to do it efficiently so you don’t end up adding even more to your spending.
If you need help finding that better way, we can help. We work with so many brands each day to help them gain more visibility into their trade spend and the details on where it's coming from so they can make better decisions moving forward...and before it's too late. Contact us and let's talk about your specific challenges with trade spend.