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Abstract
Trade promotions are temporary price cuts or price discounts
offered by manufacturers to retailers. Most often these
are offered to induce them to buy and sell the products
against the manufacturer’s competitors. While
trade promotion spending as a percentage of marketing
budgets has increased dramatically, manufacturers and
retailers are concerned about the inefficiencies of
trade promotions.
This white paper analyses in brief the off-invoice
and scan-back trade deals. It suggests few approaches
to redesign the scan-back deal, to eliminate the inefficiency
associated with the trade deal and increase the margins
of both the retailer and manufacturer. Although scan-back
promotion deals have been theoretically possible for
couple of decades, they have not been practiced often
enough to make their merits well known.
Author
Balakrishnan Anantharaman
To know more about Wipro in retail and logistics, go
to www.wipro.com/retail
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