Question

Impact of sales promotion on leading fmcg product in organized retail

Answer 1

Trade and consumer promotions, which comprise of below-the-line marketing initiatives such as quantity purchase/ value discounts, temporary price reduction, displays/ slotting fees, and “BOGO” schemes etc., targeting general/ modern trade and consumers, respectively, have historically been a critical lever to drive shelf sales for FMCG companies in India. In fact, trade promotions can represent as much as 25-50% of total marketing budget or 10%+ of an FMCG company’s sales.