Today’s Indian grocery market is far different and unique from 20 years ago. More people are driving towards supermarket franchises where they can buy almost everything in one place. The demand for such big stores is rising. There are demands, and so is the competition. With a supermarket franchise, you can connect with rising business people eager to start their retail or wholesale store. But why will they choose you?
Do you think about it? You should. The answer is ‘Trade Promotion’. Trade Promotions can help you become the #1 choice for franchise buyers, supermarket owners, or retail store business people. With the Trade Promotions, you can attract them, win their trust, and sign them for long-term business partnerships.
Also Read: Retail vs Wholesale: Which Model Works Best for a Supermarket Business?
In this blog, we will discuss everything about it. Read till the end!
What are Trade Promotions?
Trade Promotions are strategic & creative B2B marketing offers, designed to bring more business in. These strategies are especially for channel partners, where they use initiatives to target distributors or retailers.
These offers focus on bonus incentives for distributors, wholesalers, or retail store owners for completing a special task. This can be anything such as stocking or displaying the products, or hitting a specific sales target.
The Role and Impact of Trade Promotions:
Fast-Moving Consumer Goods (FMCG) and Consumer Packaged Goods (CPG) are segments with one of the highest competition rates of all the places. With so many options available in the market, people can go anywhere, wherever they like.
In such a scenario, brands must find ways to keep their partners engaged with strategic offers. This helps brands to make more partners, get more sales, and win more customers.
But is this all about the growth of the brand? No!
The Trade Promotion marketing strategies create a WIN-WIN situation for all. From franchise owners to wholesalers to retailers to consumers, everyone enjoys the benefits. Here is a brief idea about how helpful the Trade Promotions are.
1. It helps brands to reach more consumers and expand their market.
2. Consistent stocking helps the supermarkets to win customers immediately. They don’t need to pre-order or wait for another week. This immediately fulfils their demands, winning the consumer’s trust at its finest.
3. Customers become more loyal to the brand and often bring some new customers as well.
4. More customers mean more sales. This helps the brand motivate the sales team to fulfil bigger targets.
5. Improve product visibility with special offers attached to them. This also helps consumers find the best deals available.
6. Trade promotions ensure quick update of new products or offers for all, including consumers as well.
7. Franchisees can move surplus stock while maintaining the profits.
8. Every step leads to better performance and optimum results, often developing a trusted impression in the market.
Top 10 Trade Promotion Tactics for FMCG and CPG Success:
Till here, we have discussed what ‘Trade Promotions’ are and why it is essential for your business. Trade promotions offer a better deal to all, often creating a WIN-WIN situation for all channel partners. These offers are quick, efficient, and profitable for all.
1. Quantity Price or Bulk Purchase Schemes:
Bulk Purchasing schemes are one of the most common Trade Promotional ideas where a brand encourages its retailers and wholesalers to purchase more products in bulk. In return, they get a heavy discount on large product orders.
What’s for you?
Retailers & Wholesalers: They get products at discounted prices, getting more into their pockets and even attracting new potential with the discounted prices.
Franchisee Sales Team: The sales team of any franchisee enjoys conversing with the consumers, offering them discounted prices with confidence.
2. Specific Product or Product Category Scheme:
This Trade Promotion idea targets a product or product category, providing offers like discounts, free products, or cashback on the purchase of the product. This scheme is similar to bulk purchasing but limited to a specific product category.
What’s for you?
Retailers & Wholesalers: This offer encourages retail stores to focus on special categories or introduce new products in the market. Also, when the offers are in different categories, offering a balanced deal makes it easy to approach consumers with better deals.
Franchisee Sales Team: The sales team can easily handle the new-launch management, winning bulk orders even for low-performing stocks.
3. Geo Specific Schemes:
This trade promotion idea launches offers for specific locations. By understanding more about the region, culture, preferences, events, and festivals, a grocery franchise can penetrate the market, connecting with local people personally.
What’s for you?
Retailers & Wholesalers: Retailers can use geo-specific offers as special deals to gain more customers. This also offers to become a local member of the community, offering better chances to engage with them.
Franchisee Sales Team: They can connect with retailers with more meaningful offers, referring to local festivals and culture.
4. Retailers’ Specific Schemes:
Unlike the previous 3 types of Trade Promotions, this scheme targets a retail chain of either the same channel or location. The idea is to encourage specific retailers to bulk purchase at a discounted price, cashback, or free products.
What’s for you?
Retailers & Wholesalers: This is highly beneficial for small retailers who have a limited budget. They can enjoy an additional margin, enabling them to sell the products at competitive prices.
Franchisee Sales Team: The Sales team of your grocery franchise can develop a warm relationship with small retailers, offering them special treatments and a competitive edge over big retailers.
5. Customer-Attributes Schemes:
These trade promotion schemes focus on customer-centric IPs offering discounted prices or deals. A brand here focuses on two IPs.
- Customer-centric attributes (region, purchase history, or segment)
- Product-centric attributes (season-specific, category, or feature)
Companies can benefit from tailored marketing discounts for tier-2 cities where franchisees need specific attention.
What’s for you?
Retailers & Wholesalers: Rural retailers get exclusive discounted pricing, allowing them to stock, introduce, and sell more in the region.
Franchisee Sales Team: They can easily penetrate a new market, understanding the needs & preferences of the residents.
6. Point of Purchase Displays:
Point-of-purchase displays are used as silent sales drivers. These displays are strategically placed on high-traffic points such as the entrance gate, checkout counters, stock shelves, aisles, etc.
What’s for you?
Retailers & Wholesalers: They can use such displays to present special discounts or offers to all who come to the stores and increase purchases.
Franchisee Sales Team: The sales team can easily handle the queries without hardships.
7. Point System Schemes:
This trade promotion scheme uses points as a unit to award the retail grocery stores. The company gives fixed points to product units, and every time someone buys them, they get the points as well. These points can be redeemed for anything, such as cashback, free products, or extra purchases.
Also Read: How To Do Branding For Your Grocery Store?
What’s for you?
Retailers & Wholesalers: This offers them more opportunities to maximise profits and get value for their purchases. Moreover, it adds to their motivation for long-term loyalty.
FMCG & CPG Brands: It helps brands get a loyal retailer chain for the long-term and increase sales with frequent purchases for points. Creative offers also improve the chances of getting more retailers for valuable rewards.
8. Free Goods and Sampling Schemes:
The brands offer free goods or provide sampling resources to retail chains for developing demand and sales for the products. This motivates the retailers to try new launches in the market and also familiarize customers with the brand for future orders.
What’s for you?
Retailers & Wholesalers: This scheme increases product visibility, helps in product launches, and repeats orders. It also helps you boost customer engagement with the first free samples.
FMCG & CPG Brands: It helps reach new markets and connect with new retailers, offering them your best products before they pay. This often creates demand in the market and familiarity among consumers.
9. Liquidation Schemes:
Liquidation schemes strategy places offers on excess-stocked products or slow-moving inventory. Using this strategy, brands can win retailers and distributors with heavy discounts or rewards. This method is very useful for managing the stocks before their expiry.
What’s for you?
Retailers & Wholesalers: Get products at the most profitable deals.
FMCG & CPG Brands: Help recover the losses, maintain the inventory, and achieve a healthy turnover rate.
10. Seasonal Promotional Schemes:
Seasonal promotion strategy targets the local festivals, events, culture, trends, or holidays and creates attractive offers for retailers and consumers.
Benefits of Using Seasonal Promotional Offers:
- Uses the customer’s purchasing choices and peak demand periods to create suitable seasoning offers.
- Offers an opportunity to clear the stocks.
- Make the brand feel more personal to the community.
Conclusion:
When you run an FMCG supermarket brand, you must think about creating B2B offers to empower your business channels and consumers. In such scenarios, a brand must think about Trade Promotion strategies that can make their brand more powerful, personal, and attractive to retail grocery stores. In return, they can get better deals, more profits, and unmatched support from a brand. If you need professional assistance to strengthen your grocery store franchise strategy, now is the time to explore expert solutions.