Planning for FMCG Sales and Distribution
So, you want to drive sales on fast-moving consumer goods (FMCG). That’s great, but in order to bring your discount ideas to life, you need a proper promotional plan in place.
A promotional plan outlines how and when a supplier or distributor will offer price discounts on their products over the course of a year or quarter. The plan can be broken down into promotional periods (often two or four-week periods), with details about the types of promotions, SKU-level price discounts, and expected margin impact.
For FMCG suppliers, distributors, and retailers, promotional planning is an increasingly important factor when it comes to boosting sales volume and bringing in new business.
A major part of promotional planning is determining what types of deals you want to offer up to your customers. Promotional discounts can come in all shapes and sizes, so how do you know which ones are best for your business? Let’s take a closer look at the most common types of promotional discounts, and discuss how your business can begin crafting picture-perfect promotional plans that run smoothly from start to finish.
How to Create a Budget for a Promotion Plan
Right off the bat, you’ll want to consider what type of promotional discounts your business will offer. Determining the best course of action will require you to do some homework on your end, as choosing your promotional discounts will depend on the unique circumstances of your organization.
If you’re looking for some inspiration, let’s examine some of the most common types of discounts. This should help you get a sense of what will work best for you.
Types of Sales Promotions
- Off-Invoice Discount
- Manufacturer Chargeback
- Manufacturer Coupons
- Retailer Loyalty Programs
How to Create a Promo Calendar
Now you have an understanding of what types of promotional discounts you can take advantage of. So, how do you put everything together into a comprehensive and strategic plan that makes the best use of your promotional budget?
Let’s highlight some of the factors that should inform the direction you take your promotional calendar in.
Put Your Promotional Plan into Action
Promotional planning for an FMCG supplier or distributor doesn’t just affect sales volume and customer sentiment towards your products. It also has a big impact on your relationship with retailers. An organized and well-thought-out plan that is communicated properly from the get-go will help build strong partnerships with retailers far and wide.
Giving thought to promotional planning is especially important when launching a brand new product. For more on launching a new product into retail, read our article here.
With the right promotional plan at the ready, you can start to immediately drive more sales throughout the year, and gradually improve customer loyalty and retailer relationships over time. Learn more about how FORM MarketX helps field sales teams confirm execution in retail here.