HRCP Case Study:
Generating more bang for every trade buck

Situation

An HRCP project determined the need for the client to reduce trade spending by 20% over 5 years in order to increase investments in advertising and product innovation. The need was underscored by the fact that trade rates had been increasing about 1% annually.

Challenge

Henry Rak Consulting Partners was engaged to redefine the strategic role of trade and develop a 5-year plan for trade reductions utilizing our PromoMasterSM trade simulation tool to quantify plan changes.

HRCP Advantage

Based on its growth strategy analysis, Henry Rak Consulting Partners:

• Recommended new promoted brand group bundling strategies based on maximizing incremental volume and improving return on investment per trade dollar spent.
• Recommended a prescriptive trade plan that reduced overall contra-seasonal spending and focused primary spending on seasonal displays at more moderate price points.
• Focused the client on tactics that increased core sku availability and overall line availability during key consumption periods.

Results

Our five-year plan achieved the client’s trade spending reduction goals…and then some.

• The plan identified $20MM in annual profit improvement.
• The plan is being integrated with recently completed shelving and assortment strategies to maximize overall retail benefit.