7 Costly Trade Promotion Mistakes and How to Avoid Them
Years of research show trade promotions fail more often than they succeed, costing the industry billions of dollars every year.
Despite the fact that trade promotion management has been around for 50 years, many manufacturers still haven’t achieved the efficiency they seek.
All the while, pressures to achieve higher trade spend ROI has intensified as fast-moving consumer goods (FMCG) growth has stalled and the industry faces more pressure from retailer price wars.
After conducting thousands of price and promotion studies for FMCG manufacturers both large and small, Nielsen has uncovered seven common trade promotion mistakes that contribute to the current state of the industry. Very few manufacturers and retailers overcome the aggregated effect of these mistakes, derailing their pricing and promotion strategy.
The good news is: Avoiding these mistakes is easy once you detect them. But the problem is that recognizing them isn’t enough. You also need to commit to changing approaches and practices for the long haul.