The term Trade Marketing became familiar to me when I was a BBA 3rd year 1st semester student. I had a course named Selling & Sales Force Management. My respective course teacher Majed sir assigned me a task of Analyzing the Sales & Distribution Strategy of Reckitt Benckieser BD Ltd.
To accomplish my assignment, I met several distributors, TMs & other sales staffs on those days. I learned so many terms, strategies & calculation of sales from those sales leaders. One day I was analyzing their strategy & found a piece of paper mentioning a trade offer including several terms & conditions. I can still remember the Trade offer named “Mortein Lui Offer”. This program was announced by the Trade Marketing Manager of the concerned company. But I did not know about Trade Marketing functions of a company. Later I knew the role of this department in Sales & I fulfilled my assignment.
The most amazing part is that I earn my livelihood with the base of that assignment. I have been planning & implementing different trade offers like that Mortein Lui Offer since sep-2013. I launched Power Man, Frooto Truck Load program, Lassi Aram offer, Genesis and so many successful trade programs by the grace of Allah.
Question is that why manufacturers are keeping a big pie in trade marketing & hiring specialized trade marketing professionals now a days. We may unfold several reasons behind this instance after reading the below points.
Before 1990, manufacturers had a supreme bargaining power over the retailers due to low competitors. Retailers did not expect a wide spectrum of services from the manufacturers on that time. Even all retailers did not expect to have the product at their door. But the situation has been changed & they have become more demanding. A few days back, I found such retailers who claimed electricity bill of the VC Coolers which were given free of cost by the company to merchandise their products. All are trying to get the space in retail shops but space limitation is a remarkable fact. So Trade Marketers are finding a way out to get space in outlets as well as in the mind of retailers for their products. Manufactures really need to do something special & different so that the retailers believe in their products & sale those in a convenient way.
A successful business depends on an optimal combination of push & pull marketing strategy. Manufacturers are pulling their channel partners to buy their products & indirectly pushing them to sale those products to the end users or customers through trade marketing. On the other hand, Brand is busy in creating consumer pull. But they are also facing challenges to achieve their desired target due to media fragmentation & emerging new medium of advertisement like fm radio, facebook & other social media. Now we have more than 30 Bangladeshi TV channels. Earlier it was easier to communicate with your desired customers about your product through a single channel like BTV. It was possible to create a buzz of your brand by investing in one medium. Most probably, it was the reason why we can still remember the advirtisement of Jui Narkel Tel “তোমার ঘন কালো চুলে হারিয়ে যায় মন”. Moreover, there were no fierce competition of different brands on TV platform on that time. But you will be astonished to know that there were a presence of 780 brands of 380 companies only in September-2017 in TV channels of Bangladesh. Now you can understand the clutter of communication with the increasing communication & brands. So manufactures are focusing on merchandising of their products at reatil outlets. Product display is more important in case of impulse products. It is also assumed that a brand should have at least a 30% space of the relevant category for an effective visibility. And, we marketers always believe our products talk to the customers and create an impression on their mind.
In the 1990s, businesses started focusing on a group of products instead of focusing on each individual product. As a result, the manufacturers had to think how their product can contribute to the growth of a category of retailers. As a result, Trade Marketing started playing more crucial role in business.
We have around 15 lac retail outlets in Bangladesh & the number of modern trades like agora, swapno, lavendar are also growing day by day. So category management & trade marketing concepts are being more appreciated by the businessmen in these days…
This Article Written By
Samir Sakir Bunty