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An investigation into trade marketing practices by fast moving consumer goods manufacturers

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documents in English
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Type
market study
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36 pages
Level
General public
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  1. Literature review
    1. The benefits of the trade marketing for the manufacturer-retailer relationship
    2. The role of trade marketing in FMCG companies for increasing purchase decisions
  2. Methodology
    1. Problem definition
    2. Research method
  3. Data analysis
    1. Interview analysis
    2. Survey analysis
    3. Analysis of observation results

In the current distribution process, retailers and manufacturers have to work together. This relationship has often been conflictive, but now is the time for collaboration. Indeed, looking at the different fields where suppliers and retailers have to work together, we can easily understand the role of Trade Marketing. This paper highlights the central place of Trade Marketing in FMCG companies. Though it's called Trade Marketing or not, we will see that these practices are imperative for any FMCG company because of their dependency on retailers. In theory, Trade Marketing is defined as a methodical procedure carried out jointly by suppliers and retailers, whose objective is to better serve customers' needs and expectations, increase profitability and competitive position, while taking into account each other's constraints and specificity. In practice, if FMCG companies use Trade Marketing, it's often to better control their products. Indeed, consumers do not buy the product directly from the manufacturer, but via wholesalers, distributors, and retailers. So, besides communicating with the consumer directly, the manufacturer must also ensure that all intermediates are positioning and promoting their products favorably. Between Sales and Consumer Marketing department, Trade Marketers have to be a link between these two entities, to have a higher impact on the relationship with retailers. While the Consumer Marketing department manages the brand, and builds the communication based on the shoppers' insights, Trade Marketers develop channel strategies to reduce costs, and increase purchases. They select the channel that best suits each operation, and design commercial arguments, Point-Of-Purchase (POP) vision, and displays. Based on the Trade Marketing action plan, the Sales department negotiates with the retailers, to implement and monitor the operation, which is aimed to generate a higher purchase volume.

[...] " (Krivda, 2004) Fig 1.2 .3: RFID tag Fig 1.2 .4: RFID Gate Fig 1.2 .5: RFID Printer 12 Part The role of Trade Marketing in FMCG companies for increasing purchase decisions Increasing purchase decisions has often been implemented via advertisement by FMCG companies. However, media audiences are fragmented and people are increasingly annoyed by unsolicited advertising intrusions? (Pincott, 2009). So it is necessary to find other ways to promote and differentiate their brands. With the observation of Gordon Pincott that all consumers will eventually arrive at the point of purchase? (2009), we clearly see the opportunity for manufacturers to consider the store as a priority. [...]


[...] The objective of this thesis was to gather information from literature and from personal research, to present a current vision of the Trade Marketing and see if its practices lead to a competitive advantage for FMCG manufacturers. We noted that best-practices aren't generalized, and that collaborative work between retailers and manufacturers to develop a shopper centric vision can be improved. Major organisations like Unilever, L'Oreal or Nestlé which succeed their Trade Marketing operations should be examples to follow for many FMCG companies. [...]


[...] Van Den Berg, Herwin The Trade Marketing Dimension. The Hague. Academic Service. Domegan, Christine. Fleming, Declan Marketing Research in Ireland: Theory and practice. Gill & Macmillan. Dornier, Philipe-Pierre. Fender, Michel La logistique globale : Enjeux, Principes, Exemples, Editions d'Organisation. Harvard Business Review On Managing the Value Chain. Boston. Harvard Business School Press. Kotler, Philip. Keller, Kevin Lane. Manceau, Delphine. Dubois, Bernard Marketing Management, 13th ed. Pearson Education. Lindstrom, Martin. Buyology: Truth and Lies About Why We Buy New York. Broadway Books. [...]

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