Whilst the Food & Beverage industry is quite often a focus for many FMCG companies, the Household products category which has almost identical distribution channels, is also a key player in this market.
Products ranging from toilet tissue, paper towels, serviettes, baby care, feminine hygiene products, gloves, cleaning cloths and cleaning products (eg detergents, laundry powders, drain cleaners etc) are inevitably found in most consumer shopping trolleys on their regular visit to the supermarket.
The Household products industry is also a highly competitive area with hundreds of brands competing to capture your attention. In many cases, Trade Promotion Effectiveness is even more important in this category as the nature of these products being functional rather than fashionable, means they are under even more scrutiny of price and value for money decisions.
The Grocer publication quotes:
- UK manufacturers spend £8 billion a year funding trade promotions
- Retailers pocketed 90% of incremental promotion profits last year (2009) up from 78% in 2003
- 70% of manufacturers report “more” or “far more” sales were made on promotion compared with last year
- The proportion of sales made on promotion was reported as “too many” or “far too many” by 52% of suppliers
With statistics like these it’s not difficult to appreciate the complexities of the global Grocery industry and the challenges faced by today’s FMCG marketers in managing their Trade Promotion Management, Trade Fund Management, Trade Promotion Optimization and Volume Planning activities.
Promax have long been involved in the Household Grocery industry with many international global brands embracing the Promax PX solution to Track, Predict and Optimize their Trade Promotions Management, Trade Fund Management and Volume Planning activities.
Some of our clients in this industry include:
- SCA Hygiene
- SC Johnson