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..of Effective Trade Promotion Management


Enhancing the effectiveness of trade spending has been a continuing conundrum for CPG companies for nearly two decades. It was about that time that the first trade marketing departments were created to help manage the dramatically escalating trade expense line on most P&L's.  Despite two decades of increased attention, trade's percent of sales revenues continues to rise.  For those firms most challenged, trade spending accounts for as much as 25% of total sales revenues, second only to cost of goods as their largest operating expense.

Current estimates for CPG spending on trade start at $125 Billion and go higher. It is also estimated that less than one-third of all trade promotions are profitable.  Contributing to this is the fact that average consumer pass through of trade dollars is approximately $0.50 per $1.00 invested. All these factors contribute to the eroding profit margins most consumer products companies are experiencing as trade spending escalates.  Despite these circumstances, over 70% of consumer products companies do not measure promotion results!

Contact Trade Management Partners today to help identify the trade management challenges that may be causing your Continuing Conundrum!

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