271 WHY TRADE SPEND FAILS (AND HOW TO FIX IT)
Description
Trade spend often fails for emerging CPG brands due to a lack of strategy, leading to excessive spending and reduced profitability. This episode explores the five main reasons for trade spend failure, including a lack of understanding of true costs, incomplete promotion agreements, and promoting the wrong SKUs. By implementing a fully loaded cost model, creating detailed promotion agreements, and focusing on promoting the right products, brands can turn trade spend into a strategic growth lever.
Promotions should drive trial and build awareness, not reward existing customers. To be effective, promotions should focus on SKUs that drive repeat purchases, increase basket size, and reflect core brand attributes. Measuring post-promotion retention is crucial to determine the success of promotions, as it indicates whether shoppers are becoming loyal customers.
United States
