Technical Note

Educator Copy

NOTE ON TRADE MARKETING

M. Luqman Awan, Mr Waqas Ahmad (MBA 2017)

INDUSTRY :-

AREA :MARKETING

ORGANIZATION :-

LENGTH :12

LUMS No :04-2367-2017-2

PUBLICATION YEAR : 2017

DESCRIPTION

ABSTRACT:

A lot of developments have taken place in the retailing environment of Pakistan in the last 10 years. One major occurrence has been the arrival of international wholesalers/retailers such as Metro and Hyperstar (Carrefour) etc. This has altered retail dynamics in Pakistan in a number of ways. Not only has there been a major shift in channel power, but shopper buying behaviour has also been greatly influenced. With the introduction of these international as well as a few local players, the shopper now receives a unique “shopping experience” (with regards to availability of all items in one place, variety, options, assortment, service etc.). Hence the shopper’s demands have now increased. Having been “spoiled” by the experience of these “mega stores”, shoppers now expect improved shopping experience in all retail channels. Hence, it has now become essential for consumer goods companies, in particular, to invest in the in-store visibility tools and resources across channels to assist retailers in the creation of such shopping experiences. Essentially retail channels (e.g., grocers, stores) have now become a battleground for companies, since consumers’ shopping experience, while making a purchase decision, plays a more important role than before. In response to changing dynamics at the retail level, and the realisation that spending solely on above the line marketing activities (mega TV ads) is no longer influencing shoppers at the retail channel, companies have adapted by investing more on activities that would yield a better and more enriching experience for shoppers. Hence, the trade marketing function came into being. More and more companies have shifted the focus of their marketing efforts to maximum availability and visibility of their products at point-of-sales (POS) sites, through trade marketing activities. This note gives a comprehensive overview of trade marketing in Pakistan.