Trade Promotions vs. Consumer Promotions
Trade promotions reward intermediaries. Consumer promotions change the buyer’s offer.
Cheat sheet
Trade promotions reward intermediaries. Consumer promotions change the buyer’s offer.
What to check first
Hold timing and outlet profiles comparable and distinguish shipments from retail sell-through.
How to make the call
Renew the mechanic generating more incremental contribution without excess stock.
OpenStax · Retailing and wholesaling · further reading for retail & services
Indian practice case
Fictional scenario
A Lucknow biscuit brand can pay retailers for displays or offer shoppers ₹5 off.
Reveal the step-by-step solution
- Diagnose the problem.
Hold timing and outlet profiles comparable and distinguish shipments from retail sell-through.
- Work through the evidence.
Compare additional paid orders and contribution after discounts, display fees and cannibalization.
- Recommend and validate.
Renew the mechanic generating more incremental contribution without excess stock.
More Indian cases
Interview question
How would you use trade promotions vs. consumer promotions to make the decision in this case? Explain which data you need first and what would change your recommendation.
See what a strong answer includes
Compare additional paid orders and contribution after discounts, display fees and cannibalization. Renew the mechanic generating more incremental contribution without excess stock.