Gynger- A New Way to Connect with Retailers & Influencers

Trade promotions are marketing campaigns designed to engage distributors and retailers to push sales. According to a research undertaken by Price Waterhouse Coopers (PWC), trade promotions hold the capability to add 10–15% to a company’s bottom line, along with 15% increase in ROI, and 3–5% improvement in operating profit, if executed correctly. Brands come up with innovative ways and lucrative rewards to catch the attention of retailers, distributors, and influencers who could influence the purchase preference of a customer. However, the key concern that arises here is the traceability around the flow of scheme information, performance, and effectiveness.
At present, most of the trade promotions are designed and executed based on assumptions made by the marketing team. A lot of times, the importance of having a concrete tool to measure performance is overlooked by companies. Despite significant expenditure on trade promotions, companies have limited visibility around their effectiveness. This is primarily due to the absence of tools to measure the efficiency of trade promotion schemes. Thus, reflecting the lack of a clear understanding and strategy formulation of the program. Evidently, there is no provision to measure the ROI on the expenditure. The situation is even more critical for companies dealing with multiple brands, huge product portfolios, and an extensive supply chain.
Considering the poor ROI on Trade Promotions, O4S has launched Gynger, a retailer and influencer trade promotion management platform. An important thing to note is that here ‘influencers’ refer to technicians, painters, plumbers, and electricians, among others. Gynger helps organizations digitize their trade promotions schemes to incentivize their Retailers and Influencers directly to maximize sales of their brands. Over the Gynger platform, not only can the organizations create and communicate schemes directly to the retailers as well as influencers, but they can also track the effectiveness of the schemes and ensure that the reward for incremental sales reaches the intended parties. In addition, it closes the information and incentivization loop between the Manufacturer and a Retailer/influencer by connecting them directly. Moreover, it provides a data-driven approach to running trade promotions.
Companies are under continuous pressure from intensifying competition to shrinking profit margins. With huge overhead cost- Trade promotions have become all the more important as the entire market is fighting for a limited share of the consumer’s wallet. In such a situation, trade needs to be lubricated better to push stocks in the market.

Related Articles