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Perspectives

Transforming trade promotion management

Driving profitable growth in a new era of commercial spend

In the face of escalating consumer, technology, and channel shifts, consumer packaged goods (CPG) companies need to rethink traditional gross-to-net spend with a focus on faster, more granular, and better-connected commercial capabilities.

It’s time to reengineer.

The time is right—and some would say overdue—for CPGs to re-engineer their traditional trade promotion practices and adopt an integrated commercial spend approach to drive consumer engagement, stay consistent with brand strategy, and boost sales conversion. After decades of success using legacy retail models that revolve around brand-centric mass advertising and in-store promotion tactics, rapidly evolving consumer, industry, and technology forces have reached a critical mass for change.

Driving profitable growth in a new era of commercial spend

In the downloadable report, Driving profitable growth in a new era of commercial spend, you can learn more about the opportunities, hurdles, and strategies for success for how to approach and optimize the path to purchase in today’s ever-changing, digital world. Below is an exclusive preview of our trade promotion spend thought leadership content.

Industry shifts are upending traditional approaches

The acceleration of consumer, operational, and technological shifts in today's business landscape continues at warp speed, creating new opportunities and challenges for CPGs.

Three primary enterprise service delivery goals

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Shift one: Changing consumers

One size no longer fits all when it comes to consumer shopping habits and preferences. The traditional linear path to purchase has been replaced by a "choose your own adventure" approach offering several channels options and entry points to your brand. Organizations today must be prepared to meet and exceed the high expectations of consumers, who have access to ever-increasing choices leading to more diversified and localized purchase habits and patterns which require, in turn, a more individual approach to marketing and promotion investment.

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Shift two: Changing business models

Building, supporting, and integrating an omnichannel business approach requires a dramatic move away from the advertising-driven, in-store retail strategies of the past. As e-commerce sales have boomed and radical price transparency is the norm, CPGs are challenged to support a multi-channel strategy that balances consumer satisfaction and retailer relationships by delivering convenience for consumers without alienating traditional retail partners.

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Shift three: Changing technologies

The digital revolution is the primary driver for how consumers are contemplating and making their purchases today. This same technology can enable CPG organizations to effectively target and engage with consumers with data-driven insights. New technologies are rapidly accelerating how personalization can be achieved, whether via generative artificial intelligence (GenAI), scalable cloud platforms that can be operated from anywhere, and much more. The diverse array of new and emerging technologies are requiring CPGs to adopt, adapt, and evolve their capabilities faster than ever before to remain relevant in a dynamic landscape and create value for their customers.

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Overall, momentum is building for integrated commercial capabilities that enable today's CPG organizations to optimize spend and, ultimately, their ROI. As the competitive environment evolves, stepping up strategic investment in new business models and technologies can help engage digital-first consumers who, first and foremost, desire personalized brand experiences. Read the full report, Driving profitable growth in a new era of commercial spend, to learn what commercial leaders are doing today to stay ahead.

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