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PharmaSim MANAGING YOUR RETAILERS Consumer Product & Brand Management Marketing 3349
<ul><li>Push  vs  Pull   Strategy </li></ul><ul><li>Retailers are the focus of a Push strategy, bypassed in a Pull strateg...
Managing Your Retailers WHAT RETAILERS DO FOR YOU <ul><li>Distribution </li></ul><ul><li>Shelf Space </li></ul><ul><ul><li...
Managing Your Retailers RETAILER DIFFERENCES <ul><li>MEDIUM </li></ul><ul><li>Most Grocery </li></ul><ul><li>Most Chain Dr...
Managing Your Retailers MARKETING MIX <ul><li>Your marketing mix decisions affect retailers’ incentive to “push” your prod...
Managing Your Retailers PRICE  <ul><li>Suggested Retail Price – affects demand and retailer margins </li></ul><ul><li>Volu...
Managing Your Retailers TRADE PROMOTIONS <ul><li>Promotion Allowance </li></ul><ul><li>Co-op Advertising </li></ul><ul><li...
Managing Your Retailers SALES FORCE <ul><li>Number and distribution of sales people affects retailer response </li></ul><u...
Managing Your Retailers MEASURING SUCCESS <ul><li>Trade Rating -  Product Promotion Report </li></ul><ul><li>% Participati...
Managing Your Retailers OTHER INFORMATION <ul><li>How are trade promotions affecting my costs? -  Product Contribution Rep...
Managing Your Retailers SUMMARY <ul><li>Marketing mix decisions affect not only consumers but retailers as well: </li></ul...
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Managing your retailers

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Managing your retailers

  1. 1. PharmaSim MANAGING YOUR RETAILERS Consumer Product & Brand Management Marketing 3349
  2. 2. <ul><li>Push vs Pull Strategy </li></ul><ul><li>Retailers are the focus of a Push strategy, bypassed in a Pull strategy </li></ul>Managing Your Retailers STRATEGY Manufacturer Consumer Retailer PULL PUSH
  3. 3. Managing Your Retailers WHAT RETAILERS DO FOR YOU <ul><li>Distribution </li></ul><ul><li>Shelf Space </li></ul><ul><ul><li>Quantity </li></ul></ul><ul><ul><li>Quality </li></ul></ul><ul><li>Retail Price Discounts </li></ul><ul><li>Cooperative Advertising </li></ul><ul><li>Displays </li></ul>
  4. 4. Managing Your Retailers RETAILER DIFFERENCES <ul><li>MEDIUM </li></ul><ul><li>Most Grocery </li></ul><ul><li>Most Chain Drug </li></ul><ul><li>Some Mass Merch </li></ul><ul><li>Medium orders </li></ul><ul><li>Value turnover and allowances, some merchandising support </li></ul>LARGE Most Mass Merch Most Wholesale Some Grocery & Drug Larger orders Focus on turnover and allowances SMALL Most Independent Drug Most Convenience “ Mom and Pop” Grocery Smallest orders Value merchandising support
  5. 5. Managing Your Retailers MARKETING MIX <ul><li>Your marketing mix decisions affect retailers’ incentive to “push” your products </li></ul><ul><li>Manufacturer </li></ul><ul><li>PRICE </li></ul><ul><li>PROMOTION </li></ul><ul><li>Place </li></ul><ul><li>Product </li></ul>Retailer Margins Merchandising Turnover Demand
  6. 6. Managing Your Retailers PRICE <ul><li>Suggested Retail Price – affects demand and retailer margins </li></ul><ul><li>Volume Discount – affects retailer margins </li></ul><ul><li>Promotional Allowance – performance includes price reduction </li></ul>
  7. 7. Managing Your Retailers TRADE PROMOTIONS <ul><li>Promotion Allowance </li></ul><ul><li>Co-op Advertising </li></ul><ul><li>Point of Purchase </li></ul>Promotional Spending Product Sales Co-op Ad? Promo Allowance? Point of Purchase?
  8. 8. Managing Your Retailers SALES FORCE <ul><li>Number and distribution of sales people affects retailer response </li></ul><ul><li>Merchandisers are valued differentially by different retailers </li></ul><ul><li>Detailers only affect retailers by stimulating demand </li></ul>Sales Force Channel Sales Distribution Channel B Distribution Channel A Merchandisers
  9. 9. Managing Your Retailers MEASURING SUCCESS <ul><li>Trade Rating - Product Promotion Report </li></ul><ul><li>% Participation - Product Promotion Report </li></ul><ul><li>Sales - Income Statement and Product Contribution Reports </li></ul><ul><li>Income - Income Statement </li></ul>
  10. 10. Managing Your Retailers OTHER INFORMATION <ul><li>How are trade promotions affecting my costs? - Product Contribution Reports </li></ul><ul><li>What are my competitiors doing? - Sales Force Report; Promotion Report; Operating Statistics </li></ul><ul><li>How are my competitors doing? - Operating Statistics; Shelf Space Reports </li></ul><ul><li>What are the distribution trends? - Channel Share Report; Marketing Update </li></ul>
  11. 11. Managing Your Retailers SUMMARY <ul><li>Marketing mix decisions affect not only consumers but retailers as well: </li></ul><ul><ul><li>Margins </li></ul></ul><ul><ul><li>Merchandising </li></ul></ul><ul><li>Provide retailers with incentives to “push” your product to consumers </li></ul><ul><li>Turnover </li></ul><ul><li>Demand </li></ul>

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