While trade promotion spending by CPG manufacturers continues to increase, retailer compliance is trending downward, especially when performance is measured at the store/day/SKU level. This matters. Brands are paying retailers large sums in promotional gate fees to be allowed to run events, with higher fees payable for the better locations in the store.
If a promotion misfires, it can have an impact on sales, brand share, and profitability. Some of the most common culprits of non-compliance are relatively straightforward. Starting and ending on time is critical. Showcasing the product in the right promotional feature location will dramatically increase the rate of sale.
However, few retailers perfectly implement the promotional activity program agreed upon with the supplier in all their stores, banners, and locations. Of course, retailers are doing their best to execute excellently, but the morass of activity makes this challenging. Working with StayinFront RDI’s powerful POS data analytics package, brand owners can drive promotional ROI by improving the planning, execution, and effectiveness of current and future promotions.
