As retail sales shift from offline to e-commerce, marketers must learn to adjust trade strategies and budgets to be successful in a digital world.
According to “Trade Marketing in Transition,” a report from Criteo and Kantar Millward Brown, the growth of e-commerce — across both emerging devices and channels — is demanding that retailers learn to merge brand budgets with trade budgets. This combination typically includes retail display allowances for product positioning, temporary price reductions, end caps, and shopper marketing.
“Trade marketing is undergoing a profound shift,” said Jonathan Opdyke, president, brand solutions, Criteo.
“To profitably target and acquire shoppers, both online and offline, marketers must adapt their trade practices and budgets,” he added. “Retail marketers need solutions that allow for real-time measurement of ROI, and an end to the debate between offline vs. online, in favor of an omnichannel approach.”
These transitions will address many pain points that still exist in trade marketing. For example, many brands are still learning how to manage online sales. In fact, 50% of respondents rated online sales as “disruptive to hugely disruptive” to their industry. Other issues causing concerns in a digitally-driven marketplace include Amazon setting prices (29%), conflicts between brand…