Are Your Trade Promotions Hitting The Mark?
As marketing spending escalates, trade promotion optimization targets the most effective in-store initiatives. Economic challenges have left CPG companies clamoring for consumers’ attention – and paying more to do so. Since 1980, the average percent of revenue devoted to trade spending has gone from 5 percent to 18 percent, reports Durham, N.C.-based Clarkston Consulting. By 2020, it is expected to hit 30 percent. Total annual spending is about $200 billion, according to the Bardonia, N.Y.-based Promotion Optimization Institute (POI).