Trade Resources
A Different Perspective on Distributors
If you are in CPG, you can't go a day here without seeing posts from innumerable brands about the 'challenges' of working with distributors, from OI payments to significant deductions. And, yes, I come from the brand side of the business, working close to 20 years for...
CPG Is Constantly Changing – Except When It’s Not! (Part 2)
Let's talk 'Fair & Equitable' regarding pricing & trade spending. You all are operating in a complex environment, direct retailers competing with retailers buying through distributors. Or 'hi-lo' operators competing against EDLP operators. Conventional...
CPG Is Constantly Changing – Except When It’s Not! (Part 1)
Last week, I was in a supermarket and there was an item on sale, and they were out of stock on the particular flavor I buy. As I do, I checked the cooler (it was a dairy item) and would have taken a case out and filled the shelf - there were none in the cooler. So, I...
Considerations Prior to a Trade Promotion Solution
Let’s face it, trade promotion is complex. It impacts your entire team. It’s part of your day-today business. And the spending can most likely be improved to drive extra volume and revenue for your brand. And, of course, deductions are driving you nuts! With that...
Here’s A Funny (Not Really…) One to Think About
Recently read a post from someone in the CPG industry commenting on a product they bought at their supermarket - a national brand. They didn't like it. They mentioned they took it back to the store to get a refund. Of course, the retailer will take it back - they do...
Growing CPG Brands: Managing Gross to Net Revenue
In speaking to numerous emerging & growing brands, this area creates surprises, challenges & opportunities. They often occur too late to address in a proactive way, become a source of frustration and can have a snowballing effect. In reality, this difference...
An 18% Pricing Opportunity
In discussions last week, a brand had a $.20 price advantage to their 3 key competitors at a large retail chain. When brought to their attention, they were unaware of it, and turns out, was doing little for extra sales. Through additional discussion, there had been...
A Different Perspective on Distributors
If you are in CPG, you can't go a day here without seeing posts from innumerable brands about the 'challenges' of working with distributors, from OI payments to significant deductions. And, yes, I come from the brand side of the business, working close to 20 years for...
Gross Margin & List Price
There's obviously, and justifiably focus on achieving a +50% GM and addressing COGS to get that in line. That said, while doing store audits, I wonder about how founders arrive at their GTM list price. Three examples come to mind: 1. Brands with limited direct...
Margin vs. Unit Volume
In various SMB & emerging brand posts, there’s a suggestion that achieving a margin objective is exclusive of a comprehensive promotional plan with retailers that provides consumers with discounts, whether significant (say, a Publix BOGO) or basic (EDLP strategy)....
Would Trade Spending Experience Assist Your Growth?
You’re a small or emerging CPG brand, with trade promotion challenges. It’s very common – it’s a complex, and unique opportunity for growing brands. And, it can also be full of negative surprises and frustration. You feel like you could use some assistance, but who to...
Building Trade Promotion Expertise Is Strategically Important to an Emerging CPG Brand
As brands launch into the unique area of consumer packaged goods (CPG), the scope of trade promotion becomes a major reality to address. It crosses various disciplines (sales, finance, leadership) on weekly if not daily basis and extends to external partners such as...
How to Drive Trade Promotion Expertise, An Option for Emerging CPG Brands
Maximizing trade promotion spending is a major opportunity for emerging brands. It crosses most functional areas of the company – sales, finance, leadership, marketing to start. Trade promotion also involves your broker partners. At well over 20% of your gross...
How Fractional Trade Expertise Improves Your Business
We know there are numerous opportunities addressing & maximizing trade promotional spending for a CPG brand at retail. We know hiring an internal team to address is cost prohibitive at this point. So, what are the benefits to having a Fractional Trade Promotion...
Winning at Trade Spending: A Proactive vs. Reactive Approach
Most would agree that you need a proactive approach to win. It’s a mindset that drives action & ultimately results. In speaking with most emerging brands, however, the approach to trade spending is very reactive. How so? First, most emerging brands, and CPG...
The Case for Fractional Trade Marketing
There are few emerging brands that have not expressed significant frustration & even exasperation with trade spending. The reality is that this has been around for decades in CPG (since the 1970’s), is a key part of the marketing budget & sales process &...
The Role of Sales in Emerging CPG
In speaking with salespeople about trade spending, common responses tend to revolve around how they need to be ‘selling’. They do not have time for trade analysis & they view all the ‘numbers’ as something that finance should be addressing. They need to ‘be out...
Background of Trade Spending Within the CPG Industry
For most emerging CPG brands, trade spending is an initial shock. For even the most established brands, driving trade spending excellence is a key organizational discipline staffed with experienced professionals due to it’s size & far reaching scope. ...
Trade Spending Is About Winning!
While being in the CPG & SMB space for quite a while, this is something I seldom, if ever hear. Seldom has a CEO, founder or board member said, ‘I want to use trade to win!’. The comments typically are about the ‘high cost of doing business’, clearing high...
Deductions Are Like ‘Doing the Dishes’
We are all in the middle of the holiday season, and that certainly involves a lot of preparation & coordination. And at the end of most in-home celebrations, someone needs to do the dishes. For years, I have often associated deduction clearing with doing the...
Aligning with a Broker Partner
Deciding on your broker strategy as well as the specific broker partners is a key decision in your brand’s success – certainly from a sales execution & financial accounting perspective. Yes, you read that right; it does say financial accounting perspective. Their...
Role of Trade Expertise in Sales Leadership
One major area of differentiation between ‘conventional’ CPG company sales teams and emerging brands’ sales is the focus on trade management & trade expertise. The reality is that emerging brands are not placing the level of focus against this major cost /...