Negotiation Free · self-study ~60 min

Renewing Annual Trade Agreement Amid Market Volatility

An annual trade negotiation between a spirits supplier and a European wholesaler focuses on aligning growth, value, and long-term partnership. The discussion covers last year's performance, product range, pricing, promotions, and sales volumes while addressing inflation and margin pressures.

 Level

What you’ll be able to do

Dialogue

Beginner version

Alex Vance
Sam Brooks, thank you for coming today. I know you are very busy. You talk to many suppliers. I am happy we can talk together.
Sam Brooks
Hello, Alex Vance. This work together is very important to us. We need to talk about many things. I read the papers you sent. They were helpful.
Alex Vance
Good. I want to start with last year. We can look at the numbers. Then we can talk about next year.
Sam Brooks
Yes, that is fine. Please start.
Alex Vance
Last year, we sold 5.8% more than the year before. This is more than our goal. The market was hard, but we did well.
Sam Brooks
Yes, we see the same. Good spirits sold very well. Big cities did very well. People came back to bars and shops.
Alex Vance
Yes. In the first part of the year, our normal products sold well. In the second part, our best products sold very well. This was in city bars and restaurants.
Sam Brooks
I agree. But not every place did well. Some places sold a lot. Some places did not sell much.
Alex Vance
I agree. Our best customers did very well. But small places did not do so well. We think this is not a problem with what people want to buy.
Sam Brooks
What do you think the problem is?
Alex Vance
We think the problem is how we work in the shops. In some places, people could not see our products. In some places, our products were not on the menu.
Sam Brooks
I understand. But bars and restaurants did not have enough staff. They could not do big promotions.
Alex Vance
Yes, that is true. It was hard to find staff last year. But when promotions were done well, they worked.
Sam Brooks
Yes, that is right.
Alex Vance
So next year, we want to do fewer promotions. But we want them to be better. This is good for both of us.
Sam Brooks
You want to have fewer promotions. Is that right?
Alex Vance
Yes. Last year, we had almost twenty promotions. That was too many. It was hard to do them all well.
Sam Brooks
That is true. It was hard to remember all of them.
Alex Vance
Next year, we want twelve promotions. Each one will get more help. Each one will have a clear goal. We will work with your sales teams.
Sam Brooks
I understand. I think this is a good idea. But some of our sales people may worry. They use promotions to sell more in a short time.
Alex Vance
I hear that. But we do not want to give less help. We want to give more help for each promotion.
Sam Brooks
Can you tell me more?
Alex Vance
Yes. Each promotion will have more money behind it. We will have good stories and clear messages. We want to keep prices good and sell well at the same time.
Sam Brooks
OK. You talk about keeping prices good. So let us talk about prices now.
Alex Vance
Yes. I want to be open with you. Things cost more now. Materials, glass, transport, and energy all cost more. We want to put prices up by 3%.
Sam Brooks
3% is a lot, Alex Vance. The market is hard now. Our customers do not want to pay more. This is especially true for middle-price products.
Alex Vance
I understand. But this price rise is not to make more money for us. It is only to keep the money we have now.
Sam Brooks
Can you say more about that?
Alex Vance
Our profit has been less for two years. We cannot keep paying more for things and not change our prices.
Sam Brooks
For us, if prices go up and we cannot charge more to customers, we make less money. This is a big problem.
Alex Vance
Yes. That is why we do not want to talk only about price. We need to look at everything together.
Sam Brooks
What do you mean?
Alex Vance
We also want to change how we invest with you. We want to help you keep your profit on the main products.
Sam Brooks
Can you give me an example?
Alex Vance
Yes. For our normal products, we can give you a little more money back at the end of the year. But you need to sell the right amount and work well with us.
Sam Brooks
What about the best products?
Alex Vance
For our best products and new products, we do not want to give discounts. We want to give you training, good shop materials, and people to help sell the products.
Sam Brooks
So prices go up, but you give us help. And we need to sell the right amount and work well?
Alex Vance
Yes. We think this is good for both of us.
Sam Brooks
The goals are very important for us. We need to know what we must do.
Alex Vance
Of course. For example, if we agree to sell 4% more of our normal products, we can keep the same money back at the end of the year.
Sam Brooks
What if we sell more than that?
Alex Vance
Then we can talk about more help for you.
Sam Brooks
What if we sell less?
Alex Vance
Then the money back will be less. We share the risk together.
Sam Brooks
We are happy to share risk. But we must be real. We also need to talk about where we sell our products.
Alex Vance
I agree. Our best customers do well. But we do not sell in all places.
Sam Brooks
Yes, some places are a problem.
Alex Vance
Yes. We think we can sell more, especially the best products.
Sam Brooks
But to sell in more places, we need more sales work.
Alex Vance
That is true. So we want to invest together.
Sam Brooks
How?
Alex Vance
We can help your teams with training and rewards. You tell us which places you will sell in.
Sam Brooks
That can work. But we need to know what is most important.
Alex Vance
We have a list. We have five main products. Each one has a clear goal in each place.
Sam Brooks
Good. Last year, we did not always know what was most important.
Alex Vance
We learned from that. This year, we want to be clear.
Sam Brooks
Let us talk about products that do not sell well.
Alex Vance
Yes. Some products do not sell much.
Sam Brooks
What do you want to do?
Alex Vance
We can change what they are for, or we can stop selling them.
Sam Brooks
It is never easy to stop selling a product.
Alex Vance
No. But products that do not sell make problems and do not help us.
Sam Brooks
If we stop them, it is easier for us.
Alex Vance
And we can use that money for good products and new ones.
Sam Brooks
You said new products. What help will you give us for new products?
Alex Vance
We will not launch too many new products. We want to do a few and do them well.
Sam Brooks
Good. Some new products did not go well before. We do not want that again.
Alex Vance
We do not want that either.
Sam Brooks
OK, Alex Vance. I understand your plan. But the price rise is hard to explain to my team.
Alex Vance
I understand. Please look at the full plan, not only the price.
Sam Brooks
You do not want us to take all the risk.
Alex Vance
That is right. We want to share. We want to grow. We want to work well together.
Sam Brooks
I think we can agree if we talk more about the numbers and the money back.
Alex Vance
Yes, I think so too. Our teams can work on the details. Then we can meet again next week.
Sam Brooks
Good. Thank you for a good talk today.
Alex Vance
Thank you, Sam Brooks. We do not just want a new deal. We want to work well together for a long time.
Sam Brooks
Then let us keep going this way.

Intermediate version

Alex Vance
Sam Brooks, thanks for finding the time to meet today. I know this is a busy period for you with lots of supplier meetings, so I really appreciate the chance to go through everything properly.
Sam Brooks
Of course, Alex Vance. This partnership matters a lot to us, and that's exactly why it's worth having a thorough conversation. I went through the documents you shared in advance, and they were a useful starting point.
Alex Vance
Great to hear. I'd like to start with a quick look back at last year's performance, so we can make sure we're on the same page before we move on to planning for next year.
Sam Brooks
That works for me. Please go ahead.
Alex Vance
Overall, our sell-in figures were up 5.8% compared to the previous year, which is ahead of our original target. That's encouraging, especially given how unpredictable the market was.
Sam Brooks
That matches what we're seeing on our side too. Premium spirits did particularly well and beat the general market trend, especially in the bigger cities where footfall recovered faster.
Alex Vance
Exactly. In the first half, it was mainly our standard range driving growth. But in the second half, premium and top-end products really came into their own, particularly in city bars and restaurants.
Sam Brooks
I'd agree with that. However, when we look at sell-out figures, the picture wasn't the same everywhere. Some regions did very well, while others underperformed.
Alex Vance
That's a fair point. Our top customers delivered strong results, but performance in smaller or more remote regions was weaker. We think that's more of an execution issue than a lack of demand.
Sam Brooks
What do you see as the main reason for that?
Alex Vance
In our view, execution is the key factor. In some locations, products weren't visible enough, and in others, they weren't featured on menus as they should have been. Those things really affect results.
Sam Brooks
That's a fair point. But we also had difficulties with staffing in the on-trade. A lot of bars and restaurants didn't have enough people to run complex promotions properly.
Alex Vance
That's a valid point. Staffing was a challenge across the industry last year. Even so, when promotions were run well, we saw some really solid outcomes.
Sam Brooks
Yes, that's true.
Alex Vance
So going forward, we think a more focused approach will work better. We want to run fewer promotions but invest more in each one, so both sides get a better return.
Sam Brooks
When you say fewer, you mean cutting back on the number of promotions?
Alex Vance
Yes, that's right. Last year we ran close to twenty different promotional activities. That spread our resources too thin and reduced the overall impact.
Sam Brooks
I'd agree with that. It was sometimes hard to keep on top of everything.
Alex Vance
For next year, we're proposing twelve focused promotions. Each one would have stronger backing, clear objectives, and better coordination with your sales teams.
Sam Brooks
I understand the thinking. On the whole, I'm supportive. That said, reducing the number might cause some concern within our sales teams, since they often depend on promotions to hit short-term volume targets.
Alex Vance
I understand that concern. But we're not looking to reduce support overall. The idea is to put more resource behind each individual promotion rather than spreading it thinly.
Sam Brooks
Could you give me a bit more detail on that?
Alex Vance
Sure. Each promotion would come with greater financial investment. We'd develop stronger stories and messaging around our brands, and focus on premium positioning. The aim is to protect value while keeping volumes healthy.
Sam Brooks
I see. You mention protecting value quite a lot, which brings us naturally to pricing, something we really need to discuss.
Alex Vance
Absolutely. I want to be upfront about this. We're facing higher costs across raw materials, glass, transport, and energy, and as a result we're proposing a 3% price increase across the full range.
Sam Brooks
Three percent is quite significant, Alex Vance. The market is already under pressure, and our customers are very sensitive to price rises, particularly on mid-range products.
Alex Vance
I completely understand that. But I want to be clear, this isn't about increasing our profits. It's simply about protecting the margins we currently have.
Sam Brooks
Could you give us a bit more context around that?
Alex Vance
Our gross margin has been under pressure for two years now. If we keep absorbing higher costs without any adjustment, we'll have to start cutting back on brand investment.
Sam Brooks
From our perspective, if prices go up and we can't pass that on to customers, our own margin gets squeezed. That's a real concern for us.
Alex Vance
That's exactly why we don't want to discuss price in isolation. We need to think about the whole picture together.
Sam Brooks
What do you have in mind?
Alex Vance
Alongside the price increase, we want to review our trade investment to help protect your net margin on the most important products.
Sam Brooks
Can you walk me through an example?
Alex Vance
Of course. For our core range, we could increase the end-of-year rebate slightly, but it would be linked to hitting agreed volume targets and delivering on execution.
Sam Brooks
And how would that work for premium products?
Alex Vance
For premium and new products, we'd like to move away from straight discounts. Instead, we'd offer things like staff training, high-quality point-of-sale materials, and brand ambassador support.
Sam Brooks
So you're asking us to accept a price increase, but in return you'll offer support to offset the impact, as long as we deliver on volumes and execution?
Alex Vance
Yes, that's it. We think this is a balanced arrangement that works for both sides.
Sam Brooks
The conditions will be very important to us. We need to understand clearly what we'd be committing to.
Alex Vance
Of course. For example, if we agree on 4% volume growth for the core range, we can keep the current rebate level in place.
Sam Brooks
And if volumes come in above that level?
Alex Vance
Then we'd be open to discussing additional support.
Sam Brooks
And if volumes fall short of the target?
Alex Vance
Then rebates would be adjusted accordingly. The idea is that we share the risk rather than one side bearing all of it.
Sam Brooks
We're comfortable with the idea of sharing risk. But we need to be realistic about what's achievable. We should also talk about distribution, that's another area that needs attention.
Alex Vance
Agreed. Key accounts are performing well, but our distribution coverage isn't strong everywhere.
Sam Brooks
Particularly in certain regions.
Alex Vance
Yes, and we see real potential there, especially for our premium products.
Sam Brooks
But getting into more outlets means a bigger sales effort from our side.
Alex Vance
That's true, which is why we're suggesting a joint investment approach.
Sam Brooks
What would that look like?
Alex Vance
We can support your teams with training and incentives. In return, we'd ask for clear commitments on distribution in the key regions.
Sam Brooks
That could work well. But we do need clear priorities to focus on.
Alex Vance
We've put together a focused list, five key products with specific targets broken down by region.
Sam Brooks
That's helpful. Priorities weren't always clear enough last year.
Alex Vance
We took that on board. This year, we want to make sure everything is clearly defined from the start.
Sam Brooks
We should also talk about products that aren't performing well.
Alex Vance
Yes, there are a few products with consistently low sales figures.
Sam Brooks
What's your thinking on those?
Alex Vance
We see two options, either we redefine their role in the range, or we consider delisting them altogether.
Sam Brooks
Delisting is never a straightforward decision.
Alex Vance
No, it isn't. But products with low turnover create unnecessary complexity and don't deliver value for either side.
Sam Brooks
Removing them would definitely simplify things for us.
Alex Vance
And it would free up investment to put behind stronger products and new launches.
Sam Brooks
Talking of new launches, what level of support can we expect from you?
Alex Vance
We're planning to be selective with innovation. The idea is to do fewer launches but back each one properly rather than spreading support too thinly.
Sam Brooks
That's the right approach. We've had some difficult experiences with poorly supported launches in the past.
Alex Vance
So have we, and we'd like to avoid repeating that.
Sam Brooks
Overall, Alex Vance, I think I understand what you're proposing. But the price increase will be a tough sell internally.
Alex Vance
I understand that. All I'd ask is that you look at the proposal as a whole package rather than focusing on the price alone.
Sam Brooks
You're not asking us to carry all the risk on our own.
Alex Vance
Exactly. We're looking for a balanced approach, shared risk, shared growth, and a stronger partnership.
Sam Brooks
I think we can reach an agreement if we work through the volume targets and rebate structure in more detail.
Alex Vance
That's what I was hoping to hear. I'd suggest our teams work through the details and we meet again next week to finalise things.
Sam Brooks
That sounds good to me. Thank you for a really constructive conversation today.
Alex Vance
Thank you, Sam Brooks. Our goal here isn't just to renew the agreement, it's to build a partnership that works well for both of us over the long term.
Sam Brooks
Then let's keep moving in that direction.

Advanced version

Alex Vance
Sam Brooks, thank you for making the time to meet today. I am fully aware that this is a peak period for you, with numerous supplier engagements. I truly value the opportunity to delve into every aspect of our collaboration in such detail.
Sam Brooks
Absolutely, Alex Vance. This partnership is of paramount importance to us, which is precisely why we need to ensure we have a thorough discussion. I have reviewed the documentation you circulated beforehand; it has certainly set us up for a productive dialogue.
Alex Vance
That is excellent to hear. I propose we commence with a concise review of last year’s performance. I want to ensure we are aligned on the figures and key takeaways before we pivot to next year’s strategy.
Sam Brooks
That works perfectly for me. Please, go ahead.
Alex Vance
Looking at the full year, our sell-in figures grew by 5.8% year-on-year. This outpaces the target we set last year, which is a positive development, particularly given the market volatility we navigated.
Sam Brooks
Yes, that aligns with what we are observing on our end. Premium spirits performed exceptionally well, outperforming the broader market, especially in major urban centers where customer traffic rebounded more swiftly.
Alex Vance
Precisely. In the first half of the year, growth was primarily driven by our core range. However, in the second half, premium and super-premium segments really shone, particularly within city bars and restaurants.
Sam Brooks
I concur. However, when we examine sell-out data, the results were not uniform across all territories. While some regions excelled, others lagged behind.
Alex Vance
I agree. If we scrutinize the sell-out figures, our top-tier customers delivered strong results. However, performance in smaller or secondary regions was less robust. We believe this is less about demand and more about execution.
Sam Brooks
What, in your view, is the primary driver then?
Alex Vance
In our assessment, the crux of the issue is execution. In certain locations, product visibility was lacking, and in others, placement on menus was suboptimal. These factors made a significant difference.
Sam Brooks
I see your point. However, we also faced challenges with on-trade staffing. Many bars and restaurants lacked the personnel to manage complex promotional activities effectively.
Alex Vance
That is a valid observation. It was certainly a challenging year for staffing. Nevertheless, when promotions were executed correctly, we saw commendable results.
Sam Brooks
Yes, that is evident.
Alex Vance
Therefore, for the future, we believe a more streamlined approach will yield better results. We aim to reduce the volume of promotions but enhance their quality. This way, we can both extract greater value.
Sam Brooks
You are referring to a reduction in the number of promotions, correct?
Alex Vance
Yes, precisely. Last year, we ran nearly twenty distinct promotional initiatives throughout the year. This fragmented our efforts and diluted our impact.
Sam Brooks
That is true. It was sometimes difficult to keep track of everything.
Alex Vance
For next year, we propose twelve key promotions. Each would receive enhanced support, have clear objectives, and be better coordinated with your sales teams.
Sam Brooks
I grasp the concept. Generally, I am on board. However, fewer promotions might raise concerns among our sales teams, as they often rely on them for short-term volume boosts.
Alex Vance
I fully appreciate that concern. However, we are not suggesting a reduction in support. Rather, we are proposing more robust support for each individual promotion.
Sam Brooks
Could you elaborate on that?
Alex Vance
Certainly. Each promotion would be backed by increased investment. We would focus on compelling narratives, strong messaging, and premium positioning. The objective is to safeguard value while maintaining healthy sales volumes.
Sam Brooks
I see. You emphasize protecting value quite a bit, which leads us to pricing, a critical topic.
Alex Vance
Naturally. I want to be transparent. Due to inflationary pressures on raw materials, glass, transport, and energy, we are proposing a 3% price increase across the entire range.
Sam Brooks
Three percent is quite steep, Alex Vance. The market is already strained. Our customers are highly price-sensitive, particularly regarding mid-range products.
Alex Vance
I completely understand that perspective. However, I want to be clear that this increase is not aimed at boosting our profit margins. It is strictly to protect our existing margins.
Sam Brooks
Could you provide more context?
Alex Vance
Our gross margin has been under pressure for two years. Currently, we cannot continue to absorb higher costs without scaling back brand support.
Sam Brooks
From our side, if prices rise and we cannot pass that on, our net margin shrinks. This is a genuine concern for us.
Alex Vance
And that is precisely why we do not want to limit the conversation to price alone. We need to consider the broader picture.
Sam Brooks
What do you mean by that?
Alex Vance
Alongside the price increase, we want to adjust our trade investment. The goal is to protect your net margin on key products.
Sam Brooks
Could you provide an example?
Alex Vance
Certainly. For core products, we can slightly increase end-of-year rebates. This would be contingent on volume targets and strong execution.
Sam Brooks
And for premium products?
Alex Vance
For premium and new products, we want to shift away from discounts. Instead, we want to offer training, premium POS materials, and support from brand ambassadors.
Sam Brooks
So, you are asking us to accept a price increase, but you offer support to mitigate the impact, provided we deliver on volumes and execution?
Alex Vance
Yes, exactly. We believe this is a fair arrangement for both parties.
Sam Brooks
The conditions are crucial for us. We need to know exactly what we are committing to.
Alex Vance
Of course. For instance, if we agree on 4% volume growth for the core range, we can maintain the current rebate level.
Sam Brooks
And if volumes exceed that?
Alex Vance
Then we can discuss additional support.
Sam Brooks
And if volumes fall short?
Alex Vance
Then rebates would be adjusted. This way, we share the risk.
Sam Brooks
We are amenable to the idea of sharing risk. However, we must remain realistic. Distribution is another area we need to address.
Alex Vance
I agree. Even though key accounts are performing well, distribution is not robust everywhere.
Sam Brooks
Especially in certain regions.
Alex Vance
Yes. We see significant potential, particularly for premium products.
Sam Brooks
But expanding distribution requires more sales effort.
Alex Vance
That is true. That is why we propose joint investment.
Sam Brooks
How so?
Alex Vance
We can support your teams with training and incentives. In return, we ask for clear distribution commitments in key regions.
Sam Brooks
That could work. But we need clear priorities.
Alex Vance
We have prepared a list. We are focusing on five key products, with clear targets by region.
Sam Brooks
That is good. Last year, priorities were not always clear.
Alex Vance
We learned from that. This year, we want to be very clear.
Sam Brooks
Let’s talk about products that do not perform well.
Alex Vance
Yes, some products have low sales.
Sam Brooks
What do you suggest?
Alex Vance
We have two options. We can change their role, or we can remove them.
Sam Brooks
Removing products is always difficult.
Alex Vance
Yes, but low-rotation products create problems and do not add value.
Sam Brooks
Removing them would make things easier for us.
Alex Vance
And it would help us invest more in strong products and innovation.
Sam Brooks
Speaking of innovation, what support can we expect?
Alex Vance
Innovation will be selective. We want focused launches with strong support.
Sam Brooks
That is good. We had bad experiences with weak launches.
Alex Vance
We want to avoid that too.
Sam Brooks
Overall, Alex Vance, I understand your proposal. But the price increase will be difficult to explain internally.
Alex Vance
I understand. I only ask you to look at the full proposal.
Sam Brooks
You are not asking us to take all the risk.
Alex Vance
Exactly. We want balance, growth, and a strong partnership.
Sam Brooks
I think we can find an agreement if we adjust volumes and rebates.
Alex Vance
That is what I expected. I suggest our teams work on details and we meet again next week.
Sam Brooks
That sounds good. Thank you for the constructive discussion.
Alex Vance
Thank you, Sam Brooks. Our goal is not only to renew the agreement, but to build something long-term.
Sam Brooks
Then let’s continue in this direction.

Check your understanding

1. What was the year-on-year growth in sell-in figures for the full year, and how did it compare to the target set last year?

Show answer
The sell-in figures grew by 5.8% year-on-year, which outpaced the target set for last year.

2. According to Sam Brooks, which product category performed exceptionally well and where did customer traffic rebound more swiftly?

Show answer
Premium spirits performed exceptionally well, particularly in major urban centers where customer traffic rebounded more swiftly.

3. What does Alex Vance identify as the primary driver for the less robust performance in smaller or secondary regions?

Show answer
Alex Vance identifies execution as the primary driver, citing issues with product visibility and suboptimal placement on menus.

4. How does Alex Vance propose to change the promotional approach for the upcoming year compared to the previous year?

Show answer
Alex Vance proposes reducing the number of promotions from nearly twenty to twelve key promotions, while enhancing the quality and support for each individual promotion.

Grammar practice (mixed)

Grammar in context

I propose we commence with ____ concise review of last year’s performance.

Show answer & why
a · 💡 The noun 'review' is singular and countable, and it is being introduced for the first time in a general sense, requiring the indefinite article 'a'.
Grammar in context

I want to ensure we are aligned on ______ figures and key takeaways.

Show answer & why
the · 💡 The definite article 'the' is used because the figures and takeaways are specific and previously mentioned or implied in the context.
Conjunctions

______ the market volatility we navigated, the growth was positive.

Show answer & why
Despite · 💡 'Despite' is a preposition used to show contrast and is followed by a noun phrase ('the market volatility').
Prepositionsself-check

Growth was primarily driven ______ our core range.

Show answer & why
by · 💡 The passive voice 'driven by' is the standard collocation to indicate the agent or cause of an action.
Tensesself-check

Looking at the full year, our sell-in figures ______ by 5.8% year-on-year.

Show answer & why
grew · 💡 The sentence refers to a completed period ('full year') in the past, requiring the simple past tense to describe the completed action.
Prepositionsself-check

This outpaces the target we set last year, which is a positive development, particularly ______ the market volatility we navigated.

Show answer & why
given · 💡 The phrase 'given' is used here to mean 'considering' or 'taking into account', which fits the context of acknowledging the difficult market conditions.
Conjunctionsself-check

______ in the second half, premium and super-premium segments really shone, particularly within city bars and restaurants.

Show answer & why
However · 💡 The sentence contrasts the first half's performance (driven by core range) with the second half's performance (driven by premium segments), requiring a contrastive conjunction.

Discussion (practise speaking)

How can the supplier balance the need for a price increase with the distributor's concern about customer price sensitivity?

🤔 Think about a time you had to explain a price increase to a client or colleague.

Show sample answer
  • The supplier could offer additional marketing support to justify the higher price to end consumers.
  • The distributor might need to communicate the value proposition more clearly to their retail partners.
  • Both parties could agree on a phased increase to give the market time to adjust.

Ask Phil: Practise negotiating a price increase with a partner who is concerned about customer sensitivity.

What strategies can be used to improve execution in regions where performance is lagging?

🤔 Consider how you would handle a situation where your team's execution is not meeting targets.

Show sample answer
  • Increase product visibility through better placement in stores or on menus.
  • Provide additional training for on-trade staff to handle complex promotions.
  • Adjust the trade investment to focus on high-potential areas.

Ask Phil: Practise discussing strategies to improve execution in underperforming regions.

How should the partnership handle the removal of low-rotation products to maintain a strong relationship?

🤔 Think about how you would manage the removal of underperforming products in your own work.

Show sample answer
  • Clearly communicate the rationale for removing products to focus on stronger performers.
  • Offer support to transition the removed products to other channels if possible.
  • Ensure that the removal process is fair and does not penalize the distributor unfairly.

Ask Phil: Practise discussing the removal of low-rotation products with a partner.

What steps can be taken to ensure that the new streamlined promotion strategy delivers better results?

🤔 Consider how you would implement a new promotion strategy in your own organization.

Show sample answer
  • Focus on a smaller number of high-quality promotions with clear objectives.
  • Provide enhanced support and resources for each promotion to maximize impact.
  • Coordinate closely with sales teams to ensure effective execution.

Ask Phil: Practise planning a streamlined promotion strategy with a partner.

Vocabulary

sell-in figures
reveal definition The number of products sold by a manufacturer to a distributor. “Looking at the full year, our sell-in figures grew by 5.8% year-on-year.”
↗
sell-out data
reveal definition The number of products sold by a distributor to the end consumer. “However, when we examine sell-out data, the results were not uniform across all territories.”
↗
product visibility
reveal definition How easily customers can see a product in a retail or hospitality setting. “In certain locations, product visibility was lacking, and in others, placement on menus was suboptimal.”
↗
on-trade staffing
reveal definition The personnel available to work in bars, restaurants, and hotels. “However, we also faced challenges with on-trade staffing.”
↗
trade investment
reveal definition Funds allocated by a brand to support sales channels. “Alongside the price increase, we want to adjust our trade investment.”
↗
end-of-year rebates
reveal definition A percentage of the purchase price returned to the buyer at the end of the year. “For core products, we can slightly increase end-of-year rebates.”
↗
brand ambassadors
reveal definition Representatives who promote a brand's image and products. “Instead, we want to offer training, premium POS materials, and support from brand ambassadors.”
↗

Key phrases (useful expressions from the dialogue)

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