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Scenario for Setting Up and Carrying Out Trade Promotions

This scenario is an example of a process performed by brand managers and key account managers. Your company may follow a different process according to its business requirements.

A large beverage manufacturer has just developed a new brand of fruit-flavored beverage. The brand manager for the new brand has decided that a corporate promotion to promote the new brand will be launched for the year 2005. The corporate promotion recommends a temporary price reduction (TPR) and a themed in-store display as tactics during Week 10, 2005.

The key account manager for a large chain of grocery stores is responsible for creating account promotions to generate incremental volume and brand awareness. She reviews the corporate promotion and uses the promotion simulation feature to evaluate how the corporate promotion will perform at her account. After deciding to run the corporate promotion at her account, she adds the corporate promotion to the account plan. Then, she selects the promoted categories that will be included in the promotion. The selected promoted categories contain the products that the key account manager includes in the promotion. These products are designated as promoted products. For each promoted product, she creates a deal to indicate how much the grocery chain will be paid and the source of funding.

When the key account manager completes these steps, she submits the account promotion to her manager for approval by changing the status of the account promotion. Her manager has several options in evaluating the account promotion, ranging from rejecting to approving the account promotion, pending review and acceptance by the customer.

After the account promotion is approved internally, the key account manager seeks acceptance from the account.

NOTE:  This business scenario describes one method for creating promotions; promotion management of a brand and associated products. Promotions can also be managed at the product (SKU) level alone.

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