How does an 800-pound gorilla marketing budget sound to you? Impractical? Nielsen study showed that 60% of the marketing budget accounts for more than USD 100 billion every year. Yes, it is happening and is very much practical.
Trade promotions are rapidly gaining momentum, as they have shown promising results recently. As B2B commerce has grown 10 times more than the predictions post covid, technology has also contributed to the creativity in trade promotions. Are you still unsure about what trade promotion is?
Trade promotion is a marketing scheme where manufacturers target to increase the demand of their product in the retail market. It is also done by incentivising the distribution and retail channels, so that they actively participate in the promotional activities. The trade promotion activities are based on value-added bonuses, gifts, special pricing, and many other things. At the end of the day, trade promotion is not just about selling the product, but also about increasing brand value, gaining more reputation, earning trust, retention and knowing what works.
Placement of your products in a particular shelf may come with some cost, but it benefits you. End caps are one of the most popular tools to get attention. POP placements have their own advantages, as they encourage the consumer to buy impulsively. There are many other examples such as floor stickers, banners, product demonstrations, life-size stands, posters, and many more.
All buyers think about the price first before getting onto other details of the product. Wholesale buyers function in the same way. Deals and discounts make the buyer comfortable that they are not spending too much money. Also, these tactics encourage new buyers to at least try the product.
Getting some money back on every purchase feels like a little income. This is indeed a very encouraging tactic. Buyer tend to buy more products in a certain duration of time to get more money back which results in higher customer retention.
Contests are always exciting, even those who lose get some learning and fun out of it. But, the winner gets the biggest prize. In a sales contest, the manufacturer or brand motivates the retailers to sell more products by showcasing a prize for the one who will sell the most products.
A report by Valassis represented that 70% of the shoppers use coupons from different online or offline resources. It is already a popular tactic used by many; and if you are not already using it, you must do it right away.
Nobody, literally nobody denies a free sample. Samples are very small quantities of the products for testing. When you offer them for free, it costs you very little, but may convert the user into a loyal customer. Also, it increases the brand value.
In India, technology in wholesale distribution still has a long way to go. There are clear benefits to trade promotions, but getting them right is easier said than done. Contact us and learn how leading brands and distributors plan and execute their trade promotions.