PharmaSim MANAGING YOUR RETAILERS

1. PharmaSimMANAGING YOUR RETAILERS Consumer Product & Brand Management Marketing 6215

2. Push vs Pull Strategy Retailers are the focus of a Push strategy, bypassed in a Pull strategy Managing Your RetailersSTRATEGY

3. Managing Your RetailersWHAT RETAILERS DO FOR YOU Distribution Shelf Space Quantity Quality Retail Price Discounts Cooperative Advertising Displays

4. Managing Your RetailersRETAILER DIFFERENCES MEDIUM Most Grocery Most Chain Drug Some Mass Merch Medium orders Value turnover and allowances, some merchandising support

5. Managing Your RetailersMARKETING MIX Your marketing mix decisions affect retailers� incentive to �push� your products Manufacturer PRICE PROMOTION Place Product

6. Managing Your RetailersPRICE Suggested Retail Price � affects demand and retailer margins Volume Discount � affects retailer margins Promotional Allowance � performance includes price reduction

7. Managing Your RetailersTRADE PROMOTIONS Promotion Allowance Co-op Advertising Point of Purchase

8. Managing Your RetailersSALES FORCE Number and distribution of sales people affects retailer response Merchandisers are valued differentially by different retailers Detailers only affect retailers by stimulating demand

9. Managing Your RetailersMEASURING SUCCESS Trade Rating - Product Promotion Report % Participation - Product Promotion Report Sales - Income Statement and Product Contribution Reports Income - Income Statement

10. Managing Your RetailersOTHER INFORMATION How are trade promotions affecting my costs? - Product Contribution Reports What are my competitiors doing? - Sales Force Report; Promotion Report; Operating Statistics How are my competitors doing? - Operating Statistics; Shelf Space Reports What are the distribution trends? - Channel Share Report; Marketing Update

11. Managing Your RetailersSUMMARY Marketing mix decisions affect not only consumers but retailers as well: Margins Merchandising Provide retailers with incentives to �push� your product to consumers