Trade Spend tops the budget for most CPG Companies and most of them are making big mistakes! Learn what tops the list of Trade Spend Mistakes you want to avoid.

1. 5 Most Common
Trade Spend
Mistakes
Only Looking at
Consumption Data
There are more variables than soley
consumption that go into calculating
trade spend ROI. Without taking into
account shipments, your calculations
will be off.
An actual retail event may include multiple
promotional tactics all running at the same time.
By not rolling all of the tactics together as a
single event, you aren’t capturing a true ROI at
retail.
Manufacturers
find themselves
trying to manually
gather, collate, and
analyze all data
points required
to understand
trade spend ROI.
This complicates
process’, wastes
resources, and
leaves room for
human error.
A common practice is is to associate
any incremental consumption within
promotion time frames, even if the lift
didn’t occur during that period. This is
overriding the facts and should never
be done.
1.
5.
Restating History
Not Aligning Tactics
Misrepresenting
EDLP Base &
Incremental Volume
Lacking Coverage
& Discipline
2.
3.
4.
The only true way to calculate EDLP
base and incremental volume is to go
back in history where EDLP was not in
effect and compare it to EDLP trends.
Otherwise, you will need to take a
moving average and have a tool that
allows you to input adjustments into
the system.
Interested in Learning How to
Avoid Making These Errors?
Call Relational Solutions Today!
440-899-3296 x225