Tuesday, February 14, 2012

CPG Trade Promotion, Co-op Ads shifting to digital.

Consumer goods companies continue to pour money into trade promotion to boost sales. The typical company spends between 11% and 30% on the effort. These budgets are divided between trade marketing and consumer marketing. In 2012, the latest research suggests that consumer goods companies will increase their digital consumer promotions significantly.

Many of these promotions require manufacturers to work with their retail partners but these two entities do not always agree on which shopper marketing strategies are most effective.  Manufacturers say the following strategies are most effective for driving sales and brand loyalty. Retailer percentages appear in parentheses:
  • Iconic brand with strong equity among shoppers 50% (22.4%)
  • Solutions-based content 15.6% (17.6%)
  • Special packaging, promotions, ancillary displays 11.9% (22.2%)
  • Behind the scene collaboration 8.7% (19.5%)
  • Brand marketing platform 6.9% (6.7%)
  • Other 6.9% (11.6%)
In the past year, CPG companies have also upped their mobile marketing investment with 35% rolling out scanable QR codes and 21% deploying mobile sites.

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