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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. Some companies have very predictable promotion schedules that train customers to purchase their brand only when they are on sale.
While it's nice to reward consumers for being loyal, the goal of all promotions is to encourage shoppers to be loyal and to invite new customers to try your products.
Learn your competitors' strategies and the effectiveness of their promotions. Build your strategy around their promotional efforts to maximize every opportunity to invite their shoppers to try your brand.
This can be one of the most difficult areas to effectively manage due to the complexity of differing retailer programs and systems.
Identify and adopt systems that allow you to effectively manage trade spending , cash flow across simultaneous promotions at multiple retailers, promotion reconciliation, deductions, and promotion analysis and inventory movement throughout the supply chain.
Integrate your system with retailer and market data to maximize your results. Promotions can be set up a lot of different ways.
The most effective way to manage promotions and improve your ROI is to pay for what shoppers purchase. The way this works is to set up promotions that reimburse retailers for items scanned through their registers.
This is far better than paying a lump sum and taking a chance that the retailer may not help you drive sales at every location.
New product innovation is the lifeblood of every brand. New products fuel sustainable growth, attract new shoppers and increase brand awareness.
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Creativity Most companies repeat promotions annually in addition to copying competitor promotions. Please try again. Subscribe to Our Newsletter.
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