Do you face the fact that monthly sales plans are growing and sales are not growing in the same proportion, stocks are increasing and turning into “frozen” money, the overall profitability of the business is falling?
Surely, they have encountered and probably heard about trade-marketing, which stood out in a separate direction due to the above reasons.
What is “trade marketing”? This is a separate direction of marketing, aimed at stimulating and increasing sales in existing sales channels.
Main trade marketing tools
Stimulation of retail outlets
- Stimulation of a one-time increase in the volume of procurement
- Stimulating an increase in product representation
- Stimulation of decrease in accounts receivable
- Stimulating the increase in gross sales for the period
- Stimulating an increase in secondary sales
Stimulating trading teams
- Stimulating an increase in the active client base
- Stimulating an increase in quality distribution indicators
Let’s consider how to use each of them to increase sales several times and start by stimulating retail outlets.
Who we can stimulate:
- Decision makers
How can we stimulate..:
- Valuable expensive gifts
- A general gift for the company
- Insignificant gifts for all employees
- Money or gift vouchers
Tasks of stimulation:
- Increasing secondary sales of their products at a specific point of sale
- Increasing the loyalty of the point of sale to its products and the company (as a consequence, the launch of “sarafnogo marketing”).
- Increasing the representation of our products and improving merchandising in both the short and long term
- Displacement of competitor’s products from the point of sale
- Decrease in overdue receivables
- Increase in one-time purchase
- Increase in gross sales for the period
How to increase sales through point of sale incentives?
Increasing sales from the point of sale, improving merchandising and increasing product loyalty
First of all, the key role is played by those who directly sell to the end consumer: sellers or consultants – if we talk about linear retail, and merchandisers or employees of the hall – if the key retailer.
It is on these people that very often depends on how and in what assortment the shop window will look today, whose promotional materials will be located in the point of sale and whose products will be better exhibited.
Gross turnover increase
Gross turnover increase programs for the period are usually aimed at key customers.With this promotion, we set a purchase plan for the client for a period (usually a month or quarter with monthly plans) that is 40-50% higher than its sales for the previous similar period. We prescribe a program to promote our products and give the customer additional options.
The benefits of this type of incentive are that by coordinating a similar program with your key customers, you will be able to more accurately predict your sales volume at the end of the period, and therefore your inventory.
Weaknesses: if you do not have a counter promo action aimed at your client’s customer, there is a high probability that the client’s balance will increase and his sales will fall significantly in the next period.
Stimulating timely payments
The incentive for timely payments is the same: you can set a bonus for each bill of lading paid on time or for the entire amount of accounts receivable for the period. The most important thing is to determine to what extent the bonus or its amount will motivate the buyer.
Next, we will look at the methods of stimulating trading teams, and I will lay out an example of a promised share that helps to use several instruments at once.
Stimulating trading teams
Trade marketing has another very important direction – it is the stimulation of trading teams. In this regard, the anecdote is remembered at once:
What should the trade team be encouraged to do?
Stimulating an increase in the active client base
This is where they come in:
- Attracting new customers
- Implementation of sales of the entire existing customer base
- Search for new and alternative sales channels
Stimulating quality distribution
That’s where it comes in:
- Implementation of the top-level representation plan
- Increased representation of a specific product or category
- Stimulation of merchandising and provision of POS materials to retailers
- Stimulating the dominance of your TM at the point of sale
A minimum plan for the number of clients to whom a set of 10 positions should be shipped was established. A sales manager who passed the minimum limit of the competition.
Trade marketing is an indispensable tool for any trading company. Use it to stimulate distribution development and increase sales. With the right approach, trade marketing can increase a company’s turnover and save it from drains and frozen money.