TRADE MARKETING OVERVIEW

What does Trade Marketing cover ?

All related customer and trade marketing activities that will bridge Trade Sales and Marketing Connections in the supply chain area where the trade or retailers are the main customer. Trade customers and its habits, retail channels and trade development/evolution.

Category Management

Trade Marketing - 4 Ps
Trade Marketing Price Pricing execution Trade margins Consumer Marketing Pricing strategy Consumer promotion Event marketing Branded communication

Trade tie in Promotion Trade tie in Channel/Account

Place

Identify target consumer Shelf management Consumer profile Distribution targets Consumer trends Channel strategy/targets Features/Benefits Packaging/Artwork Sizing

Trade implications Product Shipper sizes/artwork Listing fees

What is Trade Marketing ?

What it is not:
An advertising agency or is empowered to execute brand advertising. Responsible for brand strategies or equities, rather Trade Marketing covers channel strategies and equities. Responsible for consumer habits/data/analysis as it relates to the brand. It can cover consumer habits/data as it relates to store shopping behaviors and the like. Responsible for setting retail pricing (but trade pricing).

What is Trade Marketing ?

Responsibilities and Accountabilities: All promotion to trade, channel or account - covering deals, price-offs, trade incentives, bundlings, premium-on-pack (POP) promotions, rebates, sampling etc. Promotion evaluation and analysis - principle to remember here is: whoever initiated the promotion should be in charge of evaluating and analyzing it; national campaigns by Trade Marketing should be evaluated by Trade Marketers, account promotions by Account Managers, consumer promotions (initiated by Marketing) by Brand Managers

What is Trade Marketing ?

Responsibilities and Accountabilities: Trade and in-store merchandising - shelf talkers, off-shelf displays (OSD), signage, shelf layouts and strategies, shelf stickers and the like. Deployment process of above and below the line activities to and from the Field Sales Force and Marketing. Trade spend monitoring, reconciliation and forecasting All resource allocations for Trade Sales - this covers allocations for what trade spend/sales budget will be per channel /account , per brand splits, timing, etc.

What is Trade Marketing ?

Responsibilities and Accountabilities: Represent Trade Sales (together with the Trade Sales Director) in budget reviews, planning, channel feedback and trade inputs. Sets the priorities in the Trade Sales cycle. Determines distribution targets Sets and implements floor pricing (lowest price available) per channel or account (a.k.a. as trade pricing), and provides inputs in trading terms. Responsible for delivery and development of sales information (AC Nielsen distribution reports, exdistributor data, ex-channel data) for trade sales

What is Trade Marketing ?

Responsibilities and Accountabilities: The main contact person in driving ECR, supply chain improvements in the Trade Sales group. Responsible for category strategies as it fits in the channels (versus brand strategies). Part of the team that develops new product launches, re-stages, line extensions, price increases, etc. and leads in the execution of these programs in the trade. Responsible for competitive activity reporting.

POS Development
POS DEVELOPMENT POS objectives determined Develop agency brief Brief design agency Design agency presents concepts & quotes Negotiate talent fees Artwork Approved Present POS concepts to accounts Edit & resubmit to account for approval Artwork production POS logistical managment Brief sales force Sales force executes POS Evaluation Trade Marketing X Field Sales Marketing X X X X X X X X X X X X X X

X X X X

Consumer Promotion Development

Trade All Channels / Accounts - Marketing Budget Marketing Promotional objectives determined I Develop agency brief I Brief design agency Design agency presents concepts & quotes I Negotiate talent fees Artwork Approved I Present promotional concepts to accounts O Edit & resubmit to account for approval O Promotion production POS logistical managment O Brief sales force O Sales force executes Post Evaluation I
I Influencer O Owner

Field Sales

Marketing O O O O O O I I O

O O

O I

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Trade Promotion Development

Trade Specific Channels / Accounts - Trade Budget Marketing Promotional objectives determined O Develop agency brief O Brief design agency O Design agency presents concepts & quotes O Negotiate talent fees Artwork Approved O Present promotional concepts to accounts O Edit & resubmit to account for approval O Promotion production O POS logistical managment O Brief sales force O Sales force executes Post Evaluation O
I Influencer O Owner

Field Sales

Marketing I I I I O I I I

O O

O I

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Trade Spend
Why is trade spend so important to the trade ?

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Eg of Retailer P&L
Sales Less Cost of Goods Trading Margin Plus Supplier Support Adjusted Gross Profit Less Operating Costs Pre Tax Profit % 100 87 13 7 20 17 3

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Retailer profit = trade spend

Profit 3% Supplier Support 7% Gross Margin on Sales 13%

Operating Costs 17%

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Trade Spend Ownership

Who should own/manage the budget ?
Whoever owns it is accountable for spend and sales Whoever owns it is responsible for the relationship with the trade Whoever owns it must have the best understanding of the trade, its goals and means of operation Whoever owns it must have controls and reporting systems in place

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Trade Spend Management

Buyer Promo Mgr Account Operations Replenishment Buyer

Account Manager How many relationships does the AM manage when negotiating a promotion ?

Promo Mgr Account Operations Replenishment Buyer Promo Mgr Account Operations Replenishment

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Trade Marketing Organisation

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Environment Analysis
External Analysis
ECR adapted by FMCGs, best practices by bigger MNCs. Customer service levels are important to improving trade relations various enabling technologies introduced and accepted by distributors, retailers, field sales force, advent of e-commerce battle for shelf space is a perennial challenge lack of creativity in in-store promotions strong presence of regional players in the asia-pacific competitors are aggressive in promotions, merchandising, advertising, new brand and packaging introductions and re-launches Some FMCG starting to focus on catman stock availability important to retailers and consumers, consumer loyalty is determined by availability (for consumers). Service reliability is key. consumers look for more value for their money

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The Underlying Desire of Trade Marketing

an integration of existing back-end and front-end processes designed to delight our customers to achieve business results deliver an integrated consumer message in all of Trade Sales initiatives

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And this is consistent to Sales/Marketing Objectives

to enhance trade marketing capabilities..

to develop effective & responsive promotion to develop category management team to establish sales & marketing information system.. to develop efficient trade fund management to develop channel focused merchandising strategies

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 The nucleus of Sales organisation

TM is the strategic support unit of Trade Sales. TM takes the lead in conceptualization, organization, orchestration and evaluation of all trade marketing programs which include but are not limited to:
Trade Promotions/CATMAN/Merchandising/Sales IM

We serve as the chief liaison unit linking Sales, Marketing, Finance, Ethical Sales, and all other functional departments.

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Marketing
Sales Legal

Supply Chain

Distributor Ethical Finance

External Organizations / Customers

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It is important to the future state of Trade Marketing

Present State Future State

Trade Marketers

Business Managers

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Key Roles & Responsibilities Translate brand/category strategy into actionable sales plan
Business Development Program manual Annual Trade Promotion Activities by channel, by brand

Formulate total category merchandising strategies Merchandising Guideline Ranging Guideline - Retail Performance Standard (RPS) Space Management Continuous improvement & development of key business processes NPD execution process POS development/premium sourcing process Floor price guideline In-store execution process with Agency (PC/Merchandisers) Promotion Evaluation - Effectiveness, deal depths, competitors

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Key Roles & Responsibilities

Provide sales support materials Trade letter, Trade presentation for new products/promotion theme Product samples Point of purchase vision and production of generic & tailor made Key customer plan-o-gram Premium sourcing Information sharing Market share, new TVC, MKT activities , Competitors information etc. Interpret market research data providing directional advice to sales team Maintain databases, key business information & process ACN data, sales information data/system Competitors information - promotion activities, pricing, ranging, new initiatives In-store SOM, SOV

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Key Roles & Responsibilities

Product knowledge training to sales team, PCs Merchandisers team. Work with multi-functional team within the business to share learning of trade requirement - promotion mechanic, new initiatives list-in timeline etc. Allocate sales budget and trade spend budget, monitor and control By brand, by channel Phasing by monthly and quarterly Trade spend monitored monthly

Deliver Sales & Profit

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Annual Planning Process

Annual Planning Process When Deliverables Marketing Develop Business Plan and Guideline Aug-15 Brand goal and strategy Target audience Brand Positioning Key Competition Promotion Grid NPD grid Trade Promotion Budget Sales Budget Draft business development program - Promotion objective & priority - Promotion activities by channel - Merchandising & Distribution objective - Sales budget by channel, account - Trade promotion budget allocation Trade Marketing Get alignment on business development plan with Sales Director and Marketing team Oct-01 Business Development programs - Promotion objective & priority

Sales Department Trade marketing develop Business Development Program (inc. all channel)

Sep-15

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Annual Planning Process

Annual Planning Process Trade Marketing Deploy annual business plan to sales team When Oct-15 Deliverables - Sales budget by channel, account - Trade promotion budget allocation - Promotion activities by channel - Promotion objective & priority - Merchandising & D istribution objective Annual plan by key account/key customer - Sales target phasing by month - Trade budget spend by month/quarter - Yearly promotion plan (with Q1 firmed) Sales Team Present and review account plan with customers and get their concurrence Annual plan by key account/key customer

Sales Team Develop and review annual key account plan with Sales Director, TM and Marketing team

Nov-07

Sales Team Submit agreed annual key account plan to business team

Nov-30

Annual plan by key accounts (with Q1 firmed)

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Quarterly Planning Process

Quarterly Planning Process When Deliverables Marketing and Trade Marketing Having a quarterly marketing and sales planning meeting Q1 - Oct 1 Q2 - Jan 1 Q3 - Apr 1 Q4 - July 1 Trade Marketing Get alignment with National Sales Director Quarterly promotion activities Deployment materials preparation

Trade Marketing Trade marketing deploy marketing and promotion activities to sales team

Q1 - Oct 15 Q2 - Jan 15 Q3 - Apr 15 Q4 - July 15

Market information sharing - Market share, shopper research, new TVC, MKT activities, competitor information etc. - Trade letter - Product/Premiums sample + Slide - Trade Presentation - POP Materials (Mock-up) 24 sets Quarterly plan by key accounts

Sales Team Develop and adjust quarterly account plan and align with National Sales Director

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Quarterly Planning Process

Quarterly Planning Process Sales Team Present quarterly account plan to marketing and Trade Marketing When Q1 - Nov 7 Q2 - Feb 7 Q3 - May 7 Q4 - Aug 7 Sales Team Present and review account plan with customers and get their concurrence Quarterly plan by key accounts Deliverables Quarterly plan by key accounts

Sales Team Submit agreed quarterly key account plan to business team

Q1 - Nov 30 Q2 - Feb 28 Q3 - May 31 Q4 - Aug 31

Quarterly plan by key accounts

Sales Team Execution

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Monthly Deployment Process

Monthly Deployment Agenda When Topics/Contents

Morning Session

National Sales Director Opening Speech, Business and Organization Updated

25th of the month Overall business status updated vs. Goals Organization updated and recognition Key direction and strategy New News

Regional Sales Managers Business and Organization Updated

Monthly and YTD business updated Organization updated and recognition

Trade Marketing Deploy marketing and promotion activities to sales team - 2 months out

Market information sharing - Market share, shopper research, new TVC, MKT activities, competitor information etc. Monthly Priority Q & A, Getting feed back from field sales

Afternoon Session Deploy key account promotion activities to

Key Account Team

Key account activities - 2 months out Q & A, Getting feed back from field sales

field sales team and merchandising specialist

Field Sales Team Execution

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Roles of each function

Key Function Key Roles Sales Director Regional Sales Managers - Giving Trade Sales Team on overall business & organization update, recognition - Giving key direction & priority - Update the business results by key account versus Goal to sales team - To deploy marketing and trade promotion activities in coming month and the month after (2 months out) to sales team - Getting the feed back from sales team on marketing and promotion activities, what are the requirements/helps that sales team would need to improve business results - Provide the feed back on marketing & promotion activities, requirements/helps that they would need to trade marketing team to support it. - Deploy in-store promotion activities of each key account to Account Rep. and Merchandising Specialist in coming month and the month after (2 months out) - Get the deployment of marketing & promotion activities from Trade Marketing for execution - Get the deployment of in-store promotion activities from Account Managers for execution - Get the deployment of marketing & promotion activities from Trade Marketing to deploy to PC's/Merchandisers team for execution - Get the deployment of in-store promotion activities from Account Managers to deploy to PC's/Merchandisers team for execution

Trade Marketing Team

Account Managers

Account Representatives

Merchandising Specialist

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The structure
Channel Specialist Brand Specialist Cat-Man specialist Sales Analyst Merchandising Specialist Promotion Specialist
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 Brand Specialists

To develop and implement brand promotions customized for the different channels (Marketing, TM and Field), address varying account needs To provide valuable inputs in promotions development specific to a channel (consultants) and continue involvement in customer teams To introduce alternative promotional vehicles to deliver sales and marketing objectives To optimize use of Trade Promotional Fund and other resources to provide maximum return on investment

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 Brand Specialists

TM should have command of any type of promo, field and marketing initiated Promo Velocity (approval authority), with TMM as last signatory before the TSD Promo Fund to be on quarterly basis. Priority is on Key / Major Accounts with annualized business plans Introduce alternative demand generating promos for use of field sales Ensure swift &flawless introduction of new brands into the market

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 Brand Specialist

Provide relevant and up-to-date sales related information about the brands 10% contingency fund will be utilized for tactical business building programs Promo Evaluation to be done during the Sales Manager Meeting
Brand Specialist to remind the SMs of monthly update.

franchise reports -- consolidation of offtake, inventory, sales trends and distribution performances

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 Merchandising Specialist
Launch an aggressive merchandising campaign suited per channel Create a merchandising standard per channel Improve merchandising support for field sales, timely execution of field sales directions.

Develop promotion team (SPG, merchandisers)

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 Merchandising Specialist

Evaluate merchandising practices and other current best approaches, come up with merchandising standards per trade channel. Create corporate/brand look in merchandising our products in Key Accounts and subd major accounts, excluding Catman accounts. Manage Display and Merchandising Budget Evaluate OSD presence in Key Accounts, rationalize the permanent ones Set KRAs for merchandisers and coordinators, training contact for follow-through Set retail performance standards and monitor proper execution in the trade Supervise SPG/MD team

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 Category Management Specialist

To consolidate existing Catman initiatives to deliver objectives and forge strategic business partnerships To develop and implement category growth programs with selected accounts

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 Category Management Specialist

captaincy accounts, expand to more doors and standardize planogram Focus on advanced Catman modules on top of shelf management initiatives with more advanced accounts Range, Promo and Pricing Strategy To provide field sales a working knowledge of Catman specific to their accounts.

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 Sales analyst

develop means of protecting and ensuring sales data are accurate and up-to-date be the link of trade sales to demand planning to apply business plans into actionable steps for use of the department manage database of total trade sales Work with internal IT, Distributor IT, to use IT to provide reasonable info access

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Sales Analyst

update and validate integrity of sales and marketing data for use of field sales and sales staff develop more effective ways of sales reporting and evaluate relevance of all existing reports of field sales download all s&m numbers and align it with field sales plans hardware and software expert and consultant

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