Improve customer relationship and promotion profit
There are a lot of moving parts that drive product sales like shelf placement or discounts offered. These factors are decided by a well-orchestrated dance between the manufacturers and retailers. When executed well, it can lead to big profits for both.
Key issues for Retailers
In recent years, there has been an onslaught of new ways to buy, such as direct online sales, omnichannel, and even online retail marketplaces that have changed the rules in retail quickly and drastically. Combining this with retail-buyers need to ensure the correct products at the right price point for both the retailer and consumers can challenge retailers' turnover and profit margin.
Key issues for CPG Manufacturers
CPG Manufacturers are often under high pressure from the retailers by a complicated situation, where retail-buyers often are responsible for as many as 25 categories. Manufacturers must become more creative to ensure that they are successful. Having in-dept knowledge of category trends, development, and history becomes a key success criteria for the manufacturers.
The double profit line is the answer
Product turnover with greater revenues easily grabs a buyer’s attention. When retailers can trust that manufacturers are providing a clear path to higher sales and bigger profits, manufacturers will reap the benefits of increased revenues in turn. We call it "The Double Profit Line." The question is, how do manufacturers build the confidence needed to sustain relationships that more easily provide higher yields for all?
We will provide 10 steps that any manufacturer can follow to foster better client bonds and boost yields.
These steps, do not need to be taken in order for each customer meeting – in fact, the first four provide a good foundation for the future you are building with your customers. Steps 5-10 are ongoing activities that will make your go-to-market strategy stronger.
Not all the improvements are quick fixes, but you must start by involving the Key Account Manager in good promotion evaluations and dare to take that dialogue with the Retailers.
Do you want to know even more about the Double Profit Line, download our whitepaper The Double Profit Line - How 10 smalls steps can help you build better relationships and improve profits.
CTA
Sincerely,
Jan Meldgaard
CEO effectmanager
If you think this sound interesting, and you would like to know, how effectmanager can help you improve the promotion profit for both you and the retailers, we will contact you, if you fill our our contact form.