Retail Promotion and Causal Retail

Step this way to find out if you’re getting your fair share of manufacturer investment

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As a retailer, you are to manufacturers what Ginger Rogers was to Fred Astaire: a principal partner. That’s why they invest with you to help promote their products across your channels – online, in-store and in print. But how can you be sure that you are perfectly in step with each other, and you’re receiving a fair share of their trade marketing budget for the activities you execute for them?

Intelligence you can leverage in conversations with manufacturers

Let’s assume, for example, that you sell 20% of all smart TVs in a market. So, in theory, you should be able to command a proportion of the biggest TV manufacturer’s trade marketing budget for its new model that’s relative to your share of the market.

From a manufacturer’s point of view, however, they will be looking not only at the retailer with the greatest share of sales now, but also the one with the most potential to gain market share in the future. If they can see that a particular retailer has made gains and the indications are that they will continue to do so, they could move the lion’s share of their trade marketing budget to this contender.

But this is only part of a manufacturer’s consideration set. They also want to know that their campaigns are being executed as agreed with their retail partners. So, if you know how you are performing when it comes to delivering different campaign elements across channels, and how this compares to your key competitors’ performance, you will be in a stronger position at the negotiating table with manufacturers. This information combined with your sales data provides you with intelligence that you can leverage in conversations with manufacturers about their level of investment with you.

Determining the level of investment you should be able to command from manufacturers

We can help you track how retailers are promoting products and their selling points on their websites, in-store, at the point of sale and in their advertising. Based on this information and your sales figures, we can conduct a fair share analysis to determine what level of investment you should be able to command from manufacturers. If you are delivering the agreed trade marketing campaign, our data will show this. It will also provide evidence of which elements of the campaign work and which don’t, as well as what promotions your competitors are running. This level of transparency relieves tensions on both sides, and ensures that you and your manufacturer partners are in perfect harmony when making your agreements.

Contact me at Karsten.holdorf@gfk.com to find out how we can help you to get your fair share of your partners’ promotional investments.

Download our interactive whitepaper

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