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 Stew_Bishop

OUR MINDS CAN TAKE

TRADE SPENDING OFF YOURS

By Stew Bishop, President and CEO
February 2017


I have been managing trade funds for more than 30 years, in house at Quaker and Bayer, and on behalf of many clients of Customer Marketing Group. 


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One of the highlights of my year is coming to Natural Products Expo West and seeing all the innovation in consumer packaged goods. It’s been particularly rewarding to see the explosive growth of clients like Clif Bar, Plum Organics and Daiya Foods.


It’s not easy to be profitable in this industry. Consolidated manufacturers with big portfolios can reach into deep pockets for high slotting fees and aggressive discounts to gain distribution and displays at powerful retailers. But consumer demand for clean, organic, sustainable products and authentic, innovative brands continues to grow. Regardless of size, manufacturers who can satisfy these needs and manage their businesses effectively will win.


One of the most daunting tasks, particularly for startups, is managing the trade fund budget. It is the largest expense for a CPG after cost of goods and human resources, and the one over which you have no control, only influence. Where else do you spend money when you are not the customer?

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I am often asked, “when do I need professional trade fund management?” Our general guideline is when you are spending $5MM or more annually in trade.

 

What is professional trade fund management? It’s using expert data scientists to mine your POS and trade spend data and seasoned business leaders to plan, negotiate and execute the most profitable retail distribution, pricing and promotion strategies.

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