Manufacturers find themselves trying to manually gather, collate, and analyze all data points required to understand trade spend ROI. This complicates process’, wastes resources, and leaves room for human error.

An actual retail event may include multiple promotional tactics all running at the same time. By not rolling all of the tactics together as a single event, you aren’t capturing a true ROI at retail.

There are more variables than soley consumption that go into calculating trade spend ROI. Without taking into account shipments, your calculations will be off.

A common practice is is to associate any incremental consumption within

promotion time frames, even if the lift didn’t occur during that period. This is overriding the facts and should never

be done.

1.

5.

Only Looking at Consumption Data

Restating History

Not Aligning Tactics

Misrepresenting EDLP Base &

Incremental Volume

Lacking Coverage & Discipline

5 Most Common Trade Spend

Mistakes

2.

3.

4.

The only true way to calculate EDLP base and incremental volume is to go back in history where EDLP was not in effect and compare it to EDLP trends.

Otherwise, you will need to take a moving average and have a tool that allows you to input adjustments into

the system.

Interested in Learning How to Avoid Making These Errors?

Call Relational Solutions Today!

440-899-3296 x225