| Promotional Effectiveness Get the most out of your trade promotions |
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The trade promotions industry is a huge one. We estimate that branded manufacturers spend as much as £15 billion a year on trade promotions, many times the size of their advertising budgets. And yet trade promotions are performing sub-optimally for most manufacturers. This equates to a high degree of expenditure wastage, and a lack of understanding of how valuable the contribution of promotions can actually be. At Billetts, we specialise in helping our clients with structured promotional strategies which make a real contribution to bottom-line profit, allowing you to measure the real return from your promotional activities. We provide a complete best-practice consultancy service in which we analyse, benchmark and optimise your key performance drivers to resolve issues like: What drives uplifts – how responsive are SKU / Retailers to?
Where Incremental volume is coming from?
How is base volume impacted by Base Price? What is your price elasticity? What will be the impact of your planned price changes? How do they impact base volumes? Will they drive profitability? We have analysed 15,000 FMCG promotions across 30 categories and can draw on our unique database of benchmarks to help you devise the most effective promotional strategies. |
We find that companies frequently under-estimate the impact that promotions can have. Our recent survey showed that a 1-2% improvement in promotional performance can yield a 2-3% benefit to the bottom-line. We also know from our analyses that, in 2008, the leading grocery retailers took 90% of the incremental profits generated by trade promotions, compared to 78% in 2003. This is the kind of data you need when planning and negotiating your promotional activity. We have a unique viewpoint on this market which can help you deliver the maximum return for your promotional pound. In short, our promotional effectiveness service gives your trade promotion investment the same degree of accountability as you apply to your other marketing investments. Planit – a better promotional planning tool The commercial planning tool that underpins our consultancy service is Planit. Planit is available to you off-the-shelf to complement our consultancy service. It allows you to take control of evaluating and optimising the returns from your future trade promotions. Planit is an easy to use desktop tool that takes the guesswork out of planning. It shows you what effect your commercial plan will have on:
Using Planit will help you manage your portfolio pricing more effectively across your range. The net effect will be greater accountability, greater clarity, more effective promotions and greater confidence in your promotional activity. |
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Contact Andrew Challier: andrew.challier@billetts.com |
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