Trade marketing includes everything required to promote your brand. It's your growth engine and the largest item on your P&L. Most trade spending is wasted. Every brand seeks to maximize their promotional ROI. There is a better way to grow sales & profits.
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Welcome. I want to thank you for listening. Today I've got something a little bit special for you. Something I've never done before. Today I'm going to share a recording from a live event that I did. I was invited by Exceedra to be their keynote speaker at the Consumer Goods Trade Promotion Management Forum in San Francisco. The talk that I gave was the Rapid Emergence Of New Brands And How Trade Marketing Strategies Enable Profitable Progress. It was well-received and I want to thank Exceedra for inviting me to speak. I'll include a link to them, and the podcast show notes at the end of the podcast.
If you've been listening to the podcast for very long, you've heard me talk about trade marketing for a long time. 70% to 90% of all trade spending is wasted. The reason for this is that a lot of brands use what I would call a rinse and repeat strategy. In other words, they don't leverage creative strategies or put a lot of care or thought into what they're doing. They simply repeat what they did in the past, with little or no change. In addition to that, retailers, distributors, agencies, etcetera have their hands out effectively. Brands often feel like an ATM machine.
Now you're probably thinking, "Well, that's just the price of doing business." Well, yes and no. Let me explain. There are a lot of promotions that don't make sense. There are a lot of promotions that aren't going to help you get your products into the hands of new shoppers. Think about it. The primary objective of any promotion is to introduce your brand, your product, to a new shopper. Anything else is effectively a waste of money. Now, certainly, you can reward me for going and buying your product when I was planning on buying it anyhow. But there are better ways to do that.
I'll discuss those strategies more in-depth in a course that I'm working on right now. Stay tuned. Another aspect of trade marketing is being able to support your retail partner. That includes participating in their programs to drive shopper awareness and excitement in the category. Now, while this is necessary and important to the retailer, some of these promotions do little or nothing to drive sustainable category sales. So what do I mean by this and why is it important? The primary goal of any promotion is to drive sustainable sales for the brand after the promotion ends. In other words, when the promotion ends, you still want customers to continue to buy your product. Those customers that didn't buy the product before the promotion.
In addition to that, most promotions fail to achieve the end result of increasing your sales over time. Let me explain. Brands with really deep pockets can effectively buy their sales. They can buy their sales volume increase and their increase in sales. But that's not sustainable, and it's not realistic for most brands, especially small emerging brands. So, wouldn't it make more sense to be able to apply your promotional dollars to promotions that grow your brand over time? So when you look at the anatomy of a promotion, some promotions will give you a nice bump or sales increase during the promotion. But once the promotion ends, you return to normal sales.
The strategies that I'm talking to you about are all designed to help you grow incremental sales after the promotion ends. This is how you maximize your trade spending. This is how you maximize your trade marketing ROI in addition to giving your brand more runway to be able to grow sales, create more innovative products, and to get on more retailer shelves and in5o the hands of more shoppers. Another key benefit of this is that you make your brand more attractive to investors. And as a result, you're able to negotiate better terms when working with investors. And this of course includes any brand that might want to acquire you at some future date. The bottom line is that understanding your trade marketing and maximizing each and every opportunity is going to decide or determine how long your brand is going to be around. A month, a week, a decade, a year, or even longer.
This is one of the key things I talk about during this keynote address. I will also be sharing some key insider secrets with you that are included in my online trade marketing mini-course and the more robust course I am working on. Stay tuned or drop me a note and let's chat if you have any questions and if you want to learn more. Let me know what points you want me to cover in the upcoming course.
Download the show notes here:
brandsecretsandstrategies.com/session140
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