The role of trade marketing in FMCG: enhancing brand reach and impact

Trade marketing in FMCG is one of the main pillars that contribute to enhancing the presence of brands in markets and achieving commercial success. Trade marketing deals with the interaction between companies, distributors and merchants with the aim of pushing products to markets more effectively and efficiently. In the fast-moving consumer goods market. FMCG trade marketing also relies on multiple strategies that affect sales movement and improve product positioning in the market. In our article today, we will show you everything you need to know about the role of trade marketing in FMCG and its most important benefits.

Fast-moving consumer goods (FMCG) meaning

They are goods that are characterized by a high sales rate and rapid turnover in the market.

These products are often relatively low-cost, are frequently purchased by consumers, and include various categories such as:

• Food.
• Beverages.
• Personal care products.
• Cosmetics.
• Cleaning products.

The main purpose of these goods is to meet the basic needs of consumers, and they are usually available in most stores.

FMCG is characterized by rapid distribution and sales, as purchases are made in short periods and in large quantities, making these products an essential part of the consumer’s daily life.

What is trade marketing in FMCG?

It is a set of activities and strategies that aim to promote products in various distribution channels and motivate distributors, retailers, and store owners to sell these products more and more effectively.

The goal of trade marketing in FMCG is to increase the movement of products within stores and expand access to consumers.

Trade marketing in FMCG examples

In FMCG, where the market is highly competitive and demand is volatile, trade marketing is an essential part of the company’s strategy to ensure effective distribution of products and achieve high sales through strong partnerships with retailers and distributors.

Through these activities, FMCG companies can improve the presence of their products in the market, increase sales, and motivate merchants to provide the best for consumers.

Which contributes to enhancing commercial success in competitive markets, and here are some of the most prominent Trade marketing in FMCG examples and activities:

• Promotions and commercial support: such as discounts, free gifts, and special offers that aim to motivate merchants to present products in an attractive way.
• Point of Sale (POS) Promotion: such as visual displays, smart product distribution on shelves, and the use of billboards to promote the product’s presence in the places most visited by consumers.
• Distributor and Merchant Relationship Management: This is done by building strong relationships with distribution channels to ensure continuous availability of products in the markets and facilitate logistics operations.
• Training and Support: This includes training sales teams and merchants on the features and benefits of products to enable them to better market the products.
• Analysis and Planning: This includes monitoring the performance of products in stores and analyzing sales data to adjust promotional strategies according to market needs.

Top FMCG trade marketing benefits

The benefits of trade marketing in FMCG are numerous, as it helps improve efficiency in distribution and enhances the presence of products in the market.

This boosts sales and strengthens relationships with distributors and dealers. Here are some of the main FMCG trade marketing benefits:

Increase sales and stimulate demand

Through promotions, discounts, and incentive programs, trade marketing enhances demand for products within stores, leading to increased sales.

Effective point-of-sale (POS) promotions also help motivate consumers to make a quick purchase decision.

Strengthen relationships with distributors

Commercial activities such as financial incentives and logistical support contribute to building strong relationships with distributors and dealers, leading to greater cooperation and achieving common sales goals.

Companies also provide distributors with training and support to improve their product knowledge and motivate them to sell more.

Enhance distribution and market reach

One of the most important benefits of trade marketing in FMCG is that it helps improve the distribution of products across different channels so that products reach the largest possible number of customers in multiple locations.

It also enhances the presence of products in strategic locations within stores to increase sales opportunities.

Improving brand awareness

Through visual merchandising and promotions, trade marketing enhances consumers’ awareness of the brand in-store, increasing the chance that they will choose that brand outperforms competitors. This can help build a strong brand reputation and increase brand loyalty.

Adapting to local market needs

Trade marketing strategies can be adapted to suit the needs of local markets or target groups, helping to provide the most appropriate offers to customers. It also helps in responding faster to changes in consumer behavior or market conditions, which are some of the most important benefits of trade marketing in FMCG.

Improving inventory management

Through good coordination between companies and distributors, inventory management and distribution can be improved more effectively.

This helps to reduce excess or shortage of stock at points of sale. This contributes to maintaining a continuous flow of products in the market and reducing waste or delays in shipments.

Increasing competitiveness in the market

By focusing on providing special offers and encouraging merchants to present products in distinctive ways, companies can differentiate themselves from competitors.

Trade marketing in FMCG also helps companies stay ahead of the competition by adapting their strategies to changing market trends.

Achieving sustainable growth for companies

Thanks to well-thought-out trade marketing strategies, companies can strengthen their relationships with all parties in the supply chain and achieve sustainable growth in the long term.

Trade marketing ensures the continuity of demand for products and enhances the brand’s presence in the market over time, which is one of the most prominent benefits of trade marketing in FMCG.

Best FMCG trade marketing agency in Jordan

Cross Jordan is the best FMCG trade marketing agency in Jordan, and has a strong reputation for providing innovative and effective trade marketing in FMCG solutions for FMCG companies.

The company has extensive experience in the local market and a deep understanding of consumer behavior.

Which helps it provide customized marketing strategies that help enhance the presence of brands in stores and increase demand for products.

Cross Jordan offers a range of integrated services that include point-of-sale promotions, promotions, distributor support, and organizing marketing activities that ensure increased sales and commercial success.

The company also seeks to build strong and long-term relationships with its trade partners by providing innovative solutions that enhance the consumer experience and ensure the presence of products in the most influential places.

If you are looking for a professional FMCG marketing agency, Cross Jordan is the perfect choice for your success and growth in the Jordanian market.

FAQs

What is trade marketing FMCG?

It focuses on promoting products within distribution channels to boost visibility and sales with retailers and distributors.

What is meant by trade marketing?

It involves strategies to drive demand for products among business partners (retailers, wholesalers) rather than end consumers.

What is trade in FMCG?

It refers to the distribution of goods to retailers and wholesalers who sell them to consumers.

What is an example of a trade in marketing?

Offering retailers discounts or incentives to stock and promote a product in stores.