Consumer goods companies have been spending a significant portion of their marketing budgets on trade promotions. Now that the economy is recovering and marketing budgets are being increased again, vendors are taking another look at trade promotion spending. At the same time, about 30% of companies say they plan to increase trade promotion this year. But do they know what they’re getting for their money? A new report jointly published by Consumer Goods and Cognizant sheds some light on this important topic.
Tag: trade promotions
The top 2 goals for CPG manufacturers this year are to improve profit margins (38%) and increase sales volume(34%). Producers of branded products have been hit especially hard by shoppers who are cutting costs and often purchasing less expensive store brands during the recession. CPG manufacturers market their new products directly to consumers, but their trade promotion efforts also make a difference for the bottom line.