Trade Marketing

Laura Premoli Business Planner @ Mediaset Premium laura.premoli@gmail.com Trade Marketing @ Tiv Srl

There is no elevator to success. You have to take the stairs.

Trade Marketing

The Distribution Channel

What
Trade Marketing

Channel Mix Levers of TM Merchandising

Organizational Models

TM Plan

Mistery
ng

Trade Marketing

The Distribution Channel

What
Trade Marketing

Channel Mix Levers of TM Merchandising

Organizational Models

TM Plan

Mistery
ng

Trade Marketing

The Distribution Channel Trade Marketing What Organizational Models

TM Plan

Channel Mix Levers of TM Merchandising

Mistery
ng

Trade Marketing

The Distribution Channel

What
Trade Marketing

Channel Mix Levers of TM Merchandising

Organizational M odels

TM Plan

Mistery
ng

Trade Marketing

The Distribution Channel

What
Trade Marketing

Channel Mix Levers of TM Merchandising

Organizational Models

TM Plan

Mistery
ng

Trade Marketing

The Distribution Channel

What
Trade Marketing

Channel Mix Levers of TM Merchandising

Organizational Models

TM Plan

Mistery
ng

Trade Marketing

The Distribution Channel

What
Trade Marketing

Channel Mix Levers of TM Merchandising

Organizational Models

TM Plan

Mistery
ng

Trade Marketing

The Distribution Channel

What
Trade Marketing

Channel Mix Levers of TM Merchandising

Organizational Models

TM Plan

Mistery
ng

10

The Distribution Channel

A company that has made the choice to compete on the basis of quality should confirm their conduct to some basic principles: the satisfaction of customers which is accompanied by the development of people, indispensable for any improvement in performance, all in a long-term perspective.

BRAND LOYALTY

STORE LOYALTY

TERRITORIAL LEVEL OF COVERAGE

CHOICE & MANAGEMENT OF CHANNEL DESIGN & MANAGEMENT OF SALES NTW PHYSICAL DISTRIBUTION

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The Distribution Channel

THE DECISION-MAKING PROCESS
Defining the objectives of Mktg and level of territorial coverage Identification of constraints an conditions

Evaluation and choice of the length of the channel

Definition of the type of distribution channel as a function of: - Product characteristics - Type of competition - Characteristics of the company - Level of penetration Defining the type of sales organization

Evaluation of the economic, geographic, regulatory and competition.

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The Distribution Channel

LONG CHANNEL TO
Simplify the organization of distribution Limit the number of customers Contain costs Reduce the investment Extend coverage to low potential customers REDUCED MARGIN BASE PLAN

SHORT CHANNEL TO
Perishable goods Limited areas Concentrated areas Custom made Coverage is selective or exclusive Customers rather small Wide and homogeneous WIDE MARGIN BASE PLAN

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Channel Mix
DEFINITION OF THE POSITIONING

Growth rate of the market

DECLINE (channels = low cost discount) MATURITY (channels of low-cost mass = Department Stores)

INTRODUCTION (channel = very specialized boutique, franchising) DEVELOPMENT (channels wider = Rinascente)

B
Added value of the channel

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Channel Mix
DEFINE THE PRESSION OF THE DISTRIBUTION CHANNEL

Intensive Obj
Wide Coverage

Selective
Media Coverage

Exclusive
Strong Image, Control, Px stable A few, known, High reputation Few, Brand loyalty

Distributors

Many Different Type Many Low-fidelity Communication, Range and stock

Limited in Number, Among the best Limited, well-known brand Promotional mix, service

End Customers

Levers

Sales, service

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Whats the Trade Marketing

THE REASONS TO THE INTRODUCTION OF TRADE MARKETING

Structural Changes in distribution channels Changes in the Role of distribution in the channels Changes in the conduct of trade

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Whats the Trade Marketing

CHANGES IN THE CONDUCT OF TRADE Autonomy of the distributor in the management of trade policies Display Methods Logistics management Promotional support

Impact on sales performance channel Impact on the market share of the supplier on the customer

Loss-control lever px consumption Loss-control over distribution policies Loss-control sales promotion Loss-control communication instore

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Whats Trade Marketi ng so ?

Whats the Trade Marketing

At birth, the trade marketing resized its role as a tool: Reducing conflicts against trading partners increasingly large and competent Push on the valve Knowledge, planning and management of the distribution process Planning support for sales dept

Inserting the function as apart of the Commercial Staff

Recognition of the strategic importance of the relationship Greater integration between marketing and sales

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Whats the Trade Marketing

Getting quality presence in the set of the distributor and to monitor key information: Level of stocks Level of assortment Panel distribution Exposure level Retail price Consumer Marketing Management process aimed at understanding and meeting the needs of the final customer Trade Marketing [] intermediate qualifying part of the more general business strategy and marketing plan

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Whats the Trade Marketing

WHATS THE MEANING OF CUSTOMER SATISFACTION? It means not deluderne expectations. Each customer has their own idea of quality, in which he compares his experience. The customer will not be disappointed when he perceived the quality will be at least compared to the expected quality. Will be fully satisfied when the supplier will be able to catch him, making him feel a level of performance above expectations. WHAT REQUIREMENTS MUST BE SATISFIED?

The basic principle of economic rationality of the resources available, without having to restrict the innovative capacity or the possibility of interaction with the customer in receiving feedback and transform them for use by the customer.

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Whats the Trade Marketing

WHATS THE MEANING OF DISTRIBUTOR SATISFACTION? The satisfaction of the customer distributor is delineated by the following aspects: Range of products innovation Brand awareness Support for the sell-out On-time delivery Accuracy of deliveries Professionalism of sales Ability to solve problems Contact the administrative offices, etc ....

needs

improvement

Satisfaction

continuity

enhancement

In a system of scores and weights, the satisfaction index is called the Dealer Satisfaction Index (DSI)

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Whats the Trade Marketing

THE ENVIRONMENT

Produttore

Grossisti

Dettaglianti

Consumatore

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Produttore

Grossisti

Dettaglianti

Consumatore

Whats the Trade Marketing

THE ENVIRONMENT GD Presence Food & Beverage Department white / brown Hi Tech clothing household Sector food more GD SPECIALIZED

- white dept. - brown dept. - hi-tech dept.

Sector non food

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Whats the Trade Marketing

Video Aires

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Levers of Trade Marketing

Trade Promotion Sales Conditions Product

Logistic

Trade Marketing Operations

Co-Marketing

Training @ Trade Partnership

Assistance and Sales Ntw

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Levers of

Trade Marketing

Levers of Trade Marketing

Conditions of sale
Invoice price Terms of payment Unconditional discounts on the invoice Canvass Quantity Discounts

Trade Promotions
Races of sale Gifts to trade Awards Sale

Co-Marketing

Product
Access to the product New Products Customized Products

Co-Advertising Sales Promotion Merchandising in store marketing

Assistance
assistance exclusive Sales force

Training for Trade

Content Modality

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Organizational Models

Trade Mktg Audit Analysis

Trade Mktg Strategy Positioning Obj

Trade Mktg Planning & Operations

Trade Segmentation

Channel Strategy Vertical Integration

Trade Marketing Mix

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Organizational Models
KEY PERFORMANCE INDEX

- Current performance and trend channels and customer - Soundness of customers - Current performance and trends in the company's channels and customers - Sales - Costs and profitability profitability (income statement) - Market share in the channel / customer

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Merchandising
It consists of a set of communication techniques used to encourage the consumer to a specific purchasing behavior. In order to encourage consumers to buy, merchandising relies first of all promotion activities in the store. Then use other tools, such as:

The Layout of the Equipment The Product Layout The display

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Merchandising
THE PULVERIZATION
The pulverization of retail trade is in its fragmentation into too many shops, mostly family-owned and modest in size.

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Merchandising
LAYOUT EQUIPMENT

Is to solve the problems relating to the allocation of the surface to the various merchandise departments, the provision of equipment and the definition of the location of the customer

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Merchandising
LAYOUT OF THE PRODUCT

Addresses the problems of dislocation of the goods in the store must be such that the highest volume of sales.

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Merchandising
THE DISPLAY

This term indicates the criteria that guide how to export the different lines of products of a given category.

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Merchandising
THE MATTER OF EXPERIENCE DISTANCE (high)

COMPLEXITY SENSORY (high)

COMPLEXITY SENSORY(low)

PANORAMIC CONTACT

DEPTH EXPERTIENCE ANALYSIS

DISTANCE (low)
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Sephora

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Sephora

Starbucks

Starbucks

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VIDEO

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Mistery shopping
Look in the mirror is the first step to self improvement and the report of mystery shopping is nothing but a mirror that makes us understand how our customers see us."

VIDEO

Mistery Shopping
Fix the starting point with clear data Set goals challenging but achievable Mystery Shopping in action on the panel determined

Finalize the report

Point out the weaknesses and areas for improvement

Highlight potential insight for the customer

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Mistery Shopping

Mystery shopping is a tool empowering, providing valuable information. If handled badly, can be very depotenziante for the people involved. The results should be handled with extreme care.

Staff Meeting Planning Forecasts Incentive Policies Benchmarking Training

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Trade Marketing Plan

Identification actual customers and potential distinction from Determining goals and objectives for clients, herbal, area Analysis of the workload for sellers Incentive policies Defining expected results Targeting and Profiling customer area Assessment of the resources needed Structuring of the sales by geography, product, customer activities and

Direct Sales

Indirect Sales

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example

Trade Marketing Plan

Nr. Shops Mine Product Following NUMERICAL DISRIBUTION Nr, Shops Outplacement Category

Revenues of Stores Treating

QUALITY DISTRIBUTION Revenues of Category Treatment Revenues Mine product at distributor PENETRATION ON DISTRIBUTOR Revenues of Distributor

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Trade Marketing Plan

Revenue Mine product MARKET SHARE

Market Revenue

Revenue Mine product MARKET SHARE

Reveue Treating

Revenue Treating

Market Revenue

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Trade Marketing Plan

INCOME STATEMENT
Gross Revenue - General Discounts NET SALES -Investment on Customers -Generic Trade Investment -Discounts -Returns -Loss on credits GROSS CONTRIBUTION ACCOUNT -Distribution Costs -Sales Costs -Management Costs -Credit Costs -Sel Costs

NET CONTRIBUTION ACCOUN

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VIDEO PROMO TRADE