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 connect with retailers 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.
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 and connect with retailers and influencers to push stocks in the market.
