Trade Spending Effectiveness

Managing and controlling trade spending ranks as one of the most difficult and costly challenges of virtually every manufacturer who takes their products to market in the foodservice channel.

What are the warning signs?

• Trade spending is now the second highest P&L line item after cost of goods
• Few manufacturers can measure customer profitability
• Cost of trade is now 2-3 times more than most manufacturers' cost of sales force
• "Multi-dipping" of incentives is common and becoming more significant
• Operator and distributor consolidation continues–and aggravates the situation

The good news is that there are tremendous opportunities to improve your trade spending return on investment. It involves evaluating your effectiveness before renewing deals.

Key questions include:

• Who are our best customers? What defines a good customer? How should we spend with them?
• Which spending activities drive value for us?
• Which products and brands should we spend on?

We can help you pinpoint the answers—and more

To help suppliers improve the effectiveness and efficiency of their trade programs and processes, we have developed a suite of support services that shine a bright light into a very dark corner, providing objective and unbiased perspectives on your trade spending strategies. Past studies have confirmed the severity of the problem–and shed light on how our custom solutions can improve the situation and increase trade spending effectiveness.

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