Trade promotion activities are ‘totally ineffective’

Trade promotion activities are ‘totally ineffective’

A new study from Accenture (NYSE: ACN) has found that consumer packaged goods (CPG) companies have invested heavily in technology platforms to improve their trade promotion performance but many lack the talent or business processes to capitalize on these investments.



According to Accenture’s Perfect Promotion Study, based on interviews with 350 senior executives at large CPG companies, 61 per cent believe their technology investments have produced a wealth of data that can help improve their trade promotion performance but they lack the talent needed to put the data to its most effective use and boost the return on their analytics investment.

One in five executives, 21 per cent, admit that they trust their intuition more than the available data to make trade promotion-related decisions.

The study also reveals that CPG companies have changed their trade promotion investments since the start of the economic downturn in 2008. According to the study, 71 per cent of CPG companies have increased their trade promotion spending in response to the economic downturn – 23 per cent by more than one. Many executives participating in the study believe the additional investment has delivered additional value: 27 per cent believe their return on investment (ROI) has increased by more than a quarter since the downturn, while 16 percent believe that their ROI has declined.

Stephanie Cornwall
Stephanie Cornwall
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