Trade Promotion Strategy: Campbell's Soup Company
How is Campbell's Soup Company promoting its new line of instant soups?
Campbell's Soup Company is introducing a new line of instant soups and offering major grocery chains volume discounts in return for featuring the soups in their ads and in-store displays. What marketing strategy is this an example of?
Trade Promotion Strategy
The scenario described is an example of a marketing strategy called "trade promotion." Trade promotion is a marketing technique where a company offers incentives or discounts to retailers or distributors in exchange for promoting or featuring their products. In this case, Campbell's Soup Company is introducing a new line of instant soups and wants to raise awareness among customers. To achieve this, they are offering volume discounts to major grocery chains like Safeway, Kroger, Publix, and Wegmans.
By offering volume discounts, Campbell's Soup Company is providing an incentive for the grocery chains to actively promote and showcase their new soup line. This strategy helps increase the visibility and awareness of the product, as the soups will be prominently featured in advertisements and displays in grocery stores. Customers who visit these grocery chains are more likely to notice the new instant soups and be encouraged to purchase them.
This trade promotion strategy benefits both Campbell's Soup Company and the grocery chains. Campbell's can increase sales and brand visibility, while the grocery chains can attract more customers by offering a popular new product at a discounted price. Overall, trade promotion is an effective marketing strategy to create buzz and drive sales for a new product launch.