SECRETS 156 Essential Strategies To Maximize Your Trade Marketing ROI With Kurt Kaiser From ViaggioTrade
Manage episode 247809241 series 1583955
Wish you knew how to explode sales and compete more effectively? This show builds on Secrets 155. Learn strategies to maximize sales and profits giving you a significant and sustainable competitive advantage. Make your brand more attractive to investors.
This episode's FREE downloadable guide
Trade marketing includes everything required to promote your brand. It's your growth engine and the largest item on your P&L. Most trade spending is wasted. Every brand seeks to maximize their promotional ROI. There is a better way to grow sales & profits.
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Welcome. This week's podcast is an extension of last week's podcast. What is trade marketing, and why does it matter? In other words, last week, we talked about the basics of trade marketing. What you need to know, and why this matters to your brand, and how you can help leverage these strategies to gain a significant and sustainable competitive advantage.
In this week's podcast, we're going to talk about the essentials. Some of the specific things that you need to know, and need to be able to understand to maximize each and every selling opportunity. The reason that this is important is because over 80% of natural brands fail within the first year - I'm committed to change that.
More importantly, about 25% of a brand's gross revenue is somehow tied to their trade marketing. And yet, 70-90% of those trade funds are wasted or infective. Let me explain. The primary goal of any promotion is to introduce your product to a new customer. Now certainly, promotions include trying to get customers to repurchase your product, generate excitement in the category, and help support your retail partners. But there are better ways and more effective ways to do that.
This is why you need to understand the difference, and how to maximize each and every selling opportunity. For example, some categories promote their product every other month. Customers know this, and they only buy the product when it's being promoted. This is one of the key reasons why promotions are ineffective or wasted. Today's story is about how to identify the difference, and how to maximize each and every selling opportunity. How to get the most out of your available resources.
What do I mean by that? Canned top line or templated reports are not going to differentiate you from your competitors. Think about it, the same reports that brands use to sell motor oil are going to not differentiate your brand if you're an organic baby food. More importantly, those reports don't reflect the way the consumers buy your products, especially natural products.
To further complicate things, the data available in natural is not going to give you the insights, the depth, and the breadth, and the level of insights that you can get if you're promoting in a mainstream retailer using mainstream syndicated data. We'll get into that more in future episodes, in addition to sharing creative strategies to work around that.
What am I talking about, and why is this important? About 25-30 years ago, I'm dating myself now, category management was created. Now, we used to use a lot of canned topline report, similar to the ones I'm referencing now. In fact, I even built my career developing a lot of those reports, those templated reports, including some for retailers. If you were another brand, and you were to sell products into that retailer, you had to complete the template, the canned report that I created.
The reason that I do what I do is to teach you how to go beyond those canned top-line reports. They're a great starting place. Don't get me wrong, there's a lot of value in that information. But if you want to understand what's really driving sales for your brand, in your category, or for the retailer, you need to go well beyond those reports. That's the focus of this entire podcast and everything I do.
Now, several years ago, the Category Management Association was founded, and the reason it exists is to develop the minimum standards of category management proficiency. I'm the first person certified at the highest level of category management proficiency. A Certified Professional Strategic Advisor, CPSA. Now, I don't tell you this to impress you, I tell this to impress upon you the difference of understanding the data, how the data works.
Being able to understand exactly how your promotional dollars flow from your brand, through the distributor, to the retailer, and to your end consumer. In fact, I've actually built a lot of really in-depth reports that get to the contribution, the heart of what's actually driving sales within the category, and for the brand, while I was at Kimberly-Clark, as well as some of my clients.
Now, back to the Category Management Association. Those minimum standards that they created are designed to help brands and retailers identify and assess the quality of the input and the insights that are available through that particular category manager. This is where a talented category manager is worth their weight in gold. This is a far cry from what you typically see in your traditional sales analyst role. Again, that's what we had before category management was founded.
Let me put this a different way, these are the strategies that the big brands rely on. And if I can help you leverage those strategies in your brand, it's going to give you a significant and sustainable competitive advantage, and more importantly, it's going to level the playing field between your brand, and any of the other brands you compete with. In addition, this is going to help you get more out of your available funds, and it's going to help make you more attractive to potential investors.
Just like in the previous podcast, I invited my friend Kurt Kaiser, who I used to work with at Kimberly-Clark. He managed teams that managed the trade marketing budget for Kimberly-Clark, and he's had an opportunity to work with a lot of brands since then. His insights are invaluable. The Category Management Association continues to reach out to me on a regular basis and asks me to help produce content for them, for their members.
Today's podcast episode is a recording of a webinar that we gave to the Category Management Association. I thought that this information, that these insights are so valuable, that I wanted to make sure that you had an opportunity to listen to it, as well.
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