Tackling your Trade!
The eco system of brand marketing has one crucial aspect –the Trade, which includes the retailer and others who are involved in supplying your product. The success or failure of a product or brand depends on how well the trade positions your brand. Here’s where trade marketing enters. And there are agencies, which help brands woo their trade better. Point of purchase delves deeper into this.
Trade Marketing as a concept has become quite an integral part of the brand marketing DNA, the concept sure has morphed, changed and had an overhaul owing to the changing times and dynamism of Indian retail. We thus probe this topic with a fresh outlook and quizzed some leading agencies who have built a strong forte in providing trade marketing services. We started off from the very definition and went on to know what they as agencies have been doing in this space for their clients. Read on to get an interesting account of Trade marketing. Trade marketing can be defined in many ways. According to Gaurav Pathak, COO, Solutions India, it is “a brand marketing function that is focused on marketing to your supply chain rather than to consumers”. Says he, “It is about increasing the demand of a brand among the trade eco system (wholesaler, retailer and distributor). It’s about finding out how the retailer thinks and discovering what motivates him, just like consumer marketing targets the consumer, mapping the consumer’s behavior.” And as Gaurav says, essentially this marketing effort is to motivate the retailers to buy your products and it includes offering various tangible/ intangible benefits to retailers such as special display allowances and promotional support in exchange for additional display space. Trade marketing is about wooing those who position your product or brand so the end consumer can see it. Rahul Saigal, Vice President, Ogilvy Action explains the difference between consumer marketing and trade marketing by comparing them to the pull and push strategies. Says he, “All brand related activities or consumer related activities can be defined as pull. Trade marketing is push strategy, which is about pushing your brand effectively through various tactics and trade incentives such as loyalty programmes, special schemes etc.” He adds further, “There’s a point at which trade marketing and shopper marketing intersect, for e.g., if I give the retailer the display size and specifications for my brand and the message to be carried on it, and I pay him a certain amount for it, it is trade marketing. But the message carried on the product is shopper marketing and that is the point at which the trader and the shopper intersect.” Sameer Mehta, VP, Multiplier, a trade marketing consultant, explains the difference further, “Product Marketing encompasses all “7P”’s of marketing, which are Product, Pricing, Place, Promotion, Packaging, Positioning & People and it covers the whole journey of the Product right from Production till consumption. Trade Marketing is targeted towards Trade Channel only that includes Trade schemes, Trade Loyalty Programs & providing marketing resources in the Trade funnel. In a way, Trade Marketing could be one of the Promotion routes for Product Marketing.” Trade marketing thus plays a very important role in determining how your end consumer or shopper perceives your brand or responds to it. Entailing the significance further Gaurav says, “Trade or channel is the foundation for every business and the Brands are investing significantly in Trade marketing to retain an edge over their competitors. Research shows that over 70% purchase decisions about a brand are made at the point of sale by the consumer. Visibility and Availability become critical therefore. Trade marketing aims to ensure that the channel partner is enthused enough to
Rahul Saigal, Vice President, Ogilvy Action
Sameer Mehta, VP, Multiplier
Gaurav Pathak, COO, Solutions India