Sales Channels

Trade Promotions and Related Challenges

Trade promotions are used mainly retail industry to attract the attention of more customers and increase the sales of the company. Such activities help companies win the hearts of the customers by making them feel that their needs are being taken care of and that the company is paying attention to their requirements.

Trade promotions represent 60% of the marketing budget and it accounts for more or less $100 billion per year. (Nielsen survey)

We all know that the competition in the retail industry continues to grow fiercer with many companies emerging regularly and trying their best to make their place in the market. Through trade promos, companies can stand out in the market by differentiating their products from the rest of the companies. Some global companies are also making the most of this marketing activity for creating brand awareness among the target audience. One of the best things about trade promotions is that it can help companies increase the product consumption rate to a great extent. It is a sad fact that trade promotion is not being given an adequate amount of attention by many Pakistani retail companies.

Many leading companies still fail to recognize the importance and benefits of incorporating trade promotions in their marketing strategies.

In this article, you will get to know about some important facts regarding the implementation of trade marketing in the Pakistani retail industry.

No formal trade marketing:

In Pakistan, retail companies are not implementing trade promotions as a marketing activity. Only some MNCs are playing an important role in this regard. Apart from a few companies, not many are paying close attention to the incorporating of trade marketing for the overall growth of the business.

The world´s fast-growing countries like China, Brazil, and India are paying lots of attention to trade marketing by incorporating this marketing activity in their retail sector.

The implementation of trade promotions in the retail sector has enhanced the overall performance and sale of retail companies in China, Brazil, and India.

Trade Promotions and related Challenges

The third-party issue in Pakistan:

The scenario that most of the product distribution is carried out by the third party creates an issue for the retail sector because this hinders the direct communication between then companies and the retailers.

Limited knowledge about the market:

Pakistani retail companies have limited information concerning trade channels which is another major factor obstructing the growth of the sector. Other emerging countries like China have sufficient information regarding trade channels which helps them make more informed decisions.

Research and surveys in the retail sector determine the elements that are needed to enhance the effectiveness of the industry.

Local companies not paying any heed:

Local retail companies in Pakistan are not paying any attention to trade marketing and due to this, they keep on failing in accomplishing their set objectives. On the other hand, countries with developed economies like China and Brazil ensure that all their local stores are using trade promotions to attract attention and increase sales.

No sufficient ATL/BTL activities for trade promotions:

Another problem with the Pakistani retail sector is that they do not actively participate in ATL and BTL marketing activities when it comes to trade promotions. Even if companies are using trade promotions, they do not rely on effective marketing tools to spread the message to the target audience.

More on Retail in Pakistan from PakRetailers.com
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