Do you want to take charge of your Trade Promotion Budget?

Trade Promotion Budget

I am consistently amazed at the number of Tier 2 and 3 companies who struggle with acknowledging, identifying and/or then managing their trade promotion dollars. 

My practices have allowed me to experience and assist a wide range of companies who initially did not see the importance of the Trade Promotion dollars and thus did nothing to improve the management thereof, much less attempt to make them more productive. Many companies continue to work on a cost plus basis and therefore do not even track their trade spending as an expense between gross and net sales. Lastly, those that have acknowledged or identified, are doing very little to proactively insure they spend on budget and avoid suprises at year end. Strategies around when, where and what to spend the monies against, is being done haphazardly and with little regard to brand overall direction. All this I suggest is the first leg of the journey called Trade Promotion Management. 

If you are a doubter, which I do appreciate there is a lot to get done to effectively compete in the CPG space and priorities can become overwhelming, consider this however:

  • Trade promotion Budgests are CONSISTENTLY the #2 Line Item Expense in the Company Profit & Loss Statement & #1 Controllable, Estimated at 20-25% of Gross Revenue - Dependent on Category and Brand. Only the "Cost of Goods" Line Item is Higher!
  • 2 of 3 Trade Promotions do NOT Payback from an ROI Perspecitve
  • The Consumer Sees LESS than 50 Cents of Every Dollar You Spend With Retailers

So given the above, don't you agree that it is time to jump in on the journey and take a proactive approach to managing trade funds?

The answwer will most certainly lie around effective strategies, being managed by smart and energized people, strong processes and a comprehensive system solution.

Let iQ Solutions assist you on this trip to prosperity. Contact Us today to learn more on how we can help you!

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