Trade Marketing Flashcards

Flashcards based on Trade Marketing lecture notes.

What is the formula for Sales Value based on the category assessment model?

Sales Value = Units/Volume x Price

How does product differentiation affect price elasticity and pricing strategy?

Products differentiated from the rest have lower price elasticity and thus can be priced higher without losing sales.

For products that are not differentiated, how can pricing be used to attract shoppers?

Lower prices can be used to attract more shoppers and increase overall sales.

What is the relationship between sales value, number of shopping trips, and average spending per trip?

Sales Value = No. of Shopping Trips x Average Spending per Trip.

How does the type of shopping trip affect average spending, and how can this be leveraged?

Increasing the number of people on the main shopping trip can increase the average spending per trip.

According to the category assessment model, what factors contribute to category sales?

Category Sales = No. of Shopping Trips x Category Incidence x Average Spending per Trip.

How does category incidence impact expected sales?

The higher the category incidence, the higher the expected sales.

What factors contribute to total category sales?

Category Sales = Penetration x Shopping Frequency x Average Spending per Trip

What is traffic building?

Increase shoppers & frequency of visits

What is transaction building?

Increase size of total transaction or buy more often

What is profit building?

Increase profit of each basket

What is a traffic building category strategy?

Convert more shoppers to the category & more often

What is a category profit strategy?

Increase profit of the category

What are the four quadrants of the category quadrant analysis?

Winners, opportunity gaps, sleepers and question marks.

What is the first step when trying to improve opportunity gaps?

Review product mix vs market.

What is the first step when trying to improve question marks?

Review product mix vs market.

What are the characteristics of good performance measures?

Specific, Measurable, Achievable, Realistic and Timely

Why do we need performance measures?

Quantify the opportunities identified during category assessment.

What are the four types of indicators of the performance measurement?

Consumer data, Market data, Indicators on supply chain efficiency, Financial indicators

What is penetration in understanding consumer data?

The percentage of consumers that have purchased a brand at least once.

What is frequency in understanding consumer data?

The number of times a shopper buys a specific SKU.

What is loyalty in understanding consumer data?

The percentage of a purchaser’s annual category needs that are satisfied by a specific brand, category, store.

What does percentage of market availability measure?

levels of distribution of each SKU & brand totally in the category

What does the stock value KPI measure?

The value of the stock in store.

What does the Retail Turnover per SKU measure?

Performance per SKU is an indication of the total demand of a product and its contribution to the performance of the retailer.

What is the GMROI?

The connection between gross margin and stock turn