Kantar Retail Launches US Trade Promotion Industry Study

This study provides insight into trade promotion spending, strategies and management practices. Published every few years since 1995, it examines key issues surrounding trade promotion spending from both a manufacturer and a retailer perspective in North America.

“Confronting Trade Promotion Fragmentation: Exceptional Agility Needed” documents how trade promotion is fragmenting ever more rapidly and the CPG industry needs to move from a more traditional approach to an updated one which reflects broader goals, new business processes, different tools and additional performance metrics. We call this need for change the “The Agility Imperative”.

For more than 20 years, Kantar Retail has surveyed manufacturers and retailers about the biggest bucket of manufacturer marketing budgets and the lever retailers consider most important for driving purchases. Here are a few headlines from this year’s report,

  • Trade spending is still shifting from traditional media to customer-specific tactics, reflecting the continued fragmentation of CPG industry trade promotion (and DTC activities in general). In many cases, industry has not yet adapted.
  • Of no surprise, digital promotion spending and activity is growing rapidly.  However, what’s evident is retailers are clearly leading while manufacturers are lagging, causing misalignment.
  • Looking ahead, the most advanced manufacturers and retailers are focused on two areas: (1) combining trade promotion activity and shopper marketing insights with individual  customer strategies; and (2) measuring the longer-term impact of trade promotion on shopper behavior. In our opinion, the latter is the next frontier for trade promotion optimization.

We invite you to read the very latest about trade promotion and hope the findings and implications in the report inspire you to consider your own situation and how you can improve. Please contact us if you wish to discuss the study.


Available to Download:

Kantar Retail 2016 Trade Promotion Study Executive Summary