Trade promotion is a marketing technique primarily used for increasing demand for products in a Retail outlet. Trade promotion provides instant marketing ROI. Trade Promotion is divided into General Trade Promotion and Modern Trade Promotion.
General Trade (GT) is traditional Kirana shops with a limited area of coverage targeting consumers who want to buy day to day purchase
Modern Trade (MT) consists of supermarkets and hypermarkets that retail Fast Moving Consumer Goods (FMCG) goods. Also known as organised retail, this retail format started in India in the early 1990s, and since then has been gaining importance.
Modern trade results in (PwC India)
• Increased availability of choice in products and services
• Rationalization and convergence of prices
• Better quality of food and non-food products
• Equalization in the standards of living available to consumers between countries
• A zero tolerance policy for inefficiencies since consumers will become unwilling to pay for substandard products and inefficiencies
Importance of Modern Trade Promotion
• Innovative merchandise display (Increasing visibility and recall value of brand)
• Increase rate of an impulse purchase
• MT has increased consumer’s option in terms of display of various products giving equal opportunities to all to enter households
• Opened doors for new products/ categories