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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 might 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 decides that a corporate promotion to promote the new brand will be launched for the following year. The corporate promotion recommends a temporary price reduction (TPR) and a themed in-store display as tactics during Week 10 of that year.

The key account manager for a large chain of grocery stores is responsible for creating account promotions to generate incremental volume and brand awareness. After creating an account plan, she can add to the plan the corporate promotion and other account promotions that she creates. She uses the promotion simulation feature to evaluate how a given promotion will perform at her account. After deciding to run a promotion at her account, she adds the promotion to the account plan. Then, she selects the promoted categories to include 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 is 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.