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

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