There is a rigorous mandate within the Consumer Goods Industry to control, manage, and evaluate the performance of trade funds, which are generally the second highest line item in the corporate budget, second only to Cost of Goods Sold.
Trade Spend for most Consumer Packaged Goods (CPG) manufacturers is closing in on 20 to 25 percent of annual gross company revenue. In addition, trade spend has become arguably the highest priority for the CPG industry as a whole. Thus, it’s easy to see how even small improvements in trade spend performance will have a significant impact on earnings.
We first want to examine the top 5 mistakes that companies make when evaluating trade spend ROI.