12. FRACTION OF
FORWARD BUYING OF
TOTAL SALES
INTERVAL BETWEEN
PROMOTIONS
NUMBER OF SKUs
RISE IN UNCERTAINITY
COST TO MANUFACTURERS
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13. COST TO THE SYSTEM
A PART OF THE COST OF TRADE
PROMOTION WHICH CAN BE
QUANTIFIED
A PART OF THE COST OF TRADE
PROMOTION WHICH CANNOT BE
QUANTIFIED
Transportation & Handling cost Selling, General & Administrative expenses 13
16. Living with Promotions
Trade Promotions
( Forward Buying, Coupons, Contests)
High Cost
Manufacturer Retailer
How to Tackle?
EDLPP
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17. What is EDLPP?
Followed By Walmart Inc.
Result in Low Fixed Cost
(Less advertising, less labour, simple inventory management)
Involves low cost price strategy
Less fluctuation in demand
Is EDLPP the solution to all the woes?
Definitely NOT
BUT
Right
Direction
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