5 Rules for Producers and Retailers to Jointly Build Customer-centric Promotions

Designing truly attractive promotions around shopper needs is always s a win-win for producers and retailers. Promoting the right items with the right mechanics at the right time allows for great offers with minimum cannibalization damage. There is always the negotiation on who finances the discount, but one rule always holds true: if you plan the promotion calendar well, everybody benefits – including the shoppers.

Developing joint promotions benefits both producers and retailers

Whenever we work on a promotions project with a producer or retailer, we always focus on the specific benefits and investments behind promotions. As mentioned earlier in this series, many of the benefits of improving promotional effectiveness for a producer are also beneficial for retailers. For instance, by reducing promo depth for less price-sensitive products or choosing a better placement of products with a higher promotion affinity, profitability and margins are…