Trade Marketing Flashcards

Flashcards about Trade Marketing and Store Profitability

What is the formula for Profitability from the retailer side?

Rotation * Margin

What does D.P.P. stand for and what does it measure?

A method that allows quantifying the profitability per article.

What is the formula for Gross Margin (G.M.)?

Retail Sale Price - Purchase Price

What does D.P.C. stand for?

Costs after the product has been purchased.

What is the formula for Direct Product Profitability (D.P.P.)?

G.M. (Gross Margin) - D.P.C. (Direct Product Cost)

List some costs that contribute to Direct Product Cost (DPC)?

Transportation, Other costs, Replacement, Checkout and Space.

How is Gross Margin Adjusted calculated?

Gross Margin + Financial Discounts + Promotional discounts + Agreements + Additional margins due to volumen (rappels)

What is the purpose of a Strategic Matrix using Unit DPP and Sales Volume?

Helps decide strategic actions based on unit DPP and sales volume. Actions include advertising, promotions, display, assortment, pricing, and cost review.

What are some actions to take in a Strategic Matrix when you have a LOW Unit DPP and LOW Sales Volume?

Reduce display, change supplier, review pricing strategy, prune assortment.

What are some actions to take in a Strategic Matrix when you have a HIGH Unit DPP and HIGH Sales Volume?

More advertising/promotions, aggressive display, position in high traffic sector, expand assortment.

What are some actions to take in a Strategic Matrix when you have a HIGH Unit DPP and LOW Sales Volume?

Sales presure, improve display, more advertising, check elasticity (price/volume).

What are some actions to take in a Strategic Matrix when you have a LOW Unit DPP and HIGH Sales Volume?

Review costs/movement methods, review pricing strategy, change position in gondola, less promotion.