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Advertising, Branding, marketing, Retail Operations Management.

CPGs Increase Retailer Specific Marketing


JACKSONVILLE, Fla. — CPG companies are ramping up retailer-specific marketing programs and finding ways to cut back on slotting fees, according to an in-depth report on trade promotion from AMG Strategic Advisors, the new strategy and insights consulting unit of Acosta Marketing Group.

The report, called “Trend Behind the Spend: A Study of Trade Promotion and Merchandising Spending in the CPG Industry,” found that two out of three CPG companies surveyed engaged in retailer-based account-specific marketing, and about a third of those that do not currently use account-specific marketing plan to begin doing so in the next year. More than 80% of larger companies participate in account-specific marketing, while less than half of small manufacturers do.

The report, which surveyed 235 CPG companies in a wide range of categories, also found that about 70% of CPG companies are able to negotiate slotting fees with retailers, but less than 30% do so regularly. The most common tactics include trade reinvestment or swapping out lower performing SKUs, but other strategies have also proven successful. About 20% overall expect increased slotting fees.

Among other findings:

• Three out of five companies executed digital marketing programs in the past year, and more than half expect to expand such programs in the coming year.

• On average, CPG companies spend 13.7% of their gross sales on trade funds — a figure that is higher for dairy and frozen-food companies, and lower for HBC/GM companies. More than half of the companies using shopper marketing indicated they plan to increase shopper marketing activities in the coming year.

via CPGs Increase Account Specific Marketing | Latest News content from Supermarket News.

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About Bob Innes

Who am I and what I do best! I am a skilled Sales and Marketing team player known for performing behind the scenes miracles that increase base distribution, improve customer relationship management, exceed annual sales volume,and profitability for Consumer Packaged Goods companies. And I've been doing it for over 15 years. My successful contributions include such clients as Kraft Foods, Mars, Bumble Bee Foods, Unilever, Johnson and Johnson and SC Johnson, and JM Smuckers.

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