The importance of trade marketing on management relations in the consumer goods industry.

• Author: Serralvo, Francisco A.
• Position: Report

1. INTRODUCTION

   The speed with which new products are launched and the intensity of negotiations between the supplier and retail organizations led manufacturers of mass consumption on new alternatives for improving the relationship with the marketing channel. This leads to the trade marketing, with responsibility not only trim the edges resulting from a care whether commercial, whether promotional, disabled and the channel between the industry, but also to strengthen trade ties, seeking to place this relationship at levels more cordial and productive.

   Moreover, the retail market is rapidly developing and becoming aware of their bargaining power, thus increasingly expanding their demands, and charges for its suppliers.

   You must identify the reasons that justify the importance of Trade Marketing in the retail and define its practical application, main duties and also raise the reasons why a many good ideas end not being exploited due to problems and strategic positioning in negotiations.

   In this context it is important to try to identify as the Trade Marketing must be submitted to become a competitive advantage-for the industry within the retail?

   The overall objective of the study is to examine the advantages of Trade Marketing employee relationship in industries with retail chains.

2. METHODOLOGY

   To achieve the proposed objectives, we developed an exploratory survey based on a single case study (Yin, 1993).

   The research started from a documentary survey literature, with the purpose of analyzing and structuring the theoretical model for the Trade Marketing. Since developing the model, we used the case study to verify the model, based on the observation of a reality faced by a large organization.

   The company was chosen as Warner Lambert, specifically the Consumer Health Care division, it's only product currently marketed in Brazil, the mouthwash Listerine. This choice is due to the company being a pioneer in the Brazilian market to implement an area of Trade Marketing and, therefore, have a well structured not only by experience, but also by good data.

   Warner Lambert is the leading mouthwash in Brazil and in virtually all market segments, beside being one of the largest Brazilian companies with expertise in merchandising, appearing therefore as a highly competitive market and therefore a rich source to study themes proposed in this paper.

3. TRADE MARKETING

   Many companies still use to planning systems and hierarchical control designed to contest the industrial era. The strategy is determined by the summit, it is up to managers to establish goals, policies and resource allocation in the long term. They state that lower-level managers and employees must act in accordance with those plans. Executives and managers use a management control system to monitor the acquisition and use of resources in accordance with the strategic plan. And further down the hierarchical ladder of the organization, operational control systems monitor the performance of short-term processes specific and frontline staff (Serralvo, 2004).

   Trade Marketing means to optimize the relationship between the producer and distributor. The concept originated in the early 90s due to the increasing importance of intermediaries (wholesalers and retailers) in the distribution. The relationship between producers and distributors is, in general, conflicting. The objective of the trade marketing is to find ways to both make the most of a collaboration agreement. Proposes the creation of a long-term partnership between producers and distributors in such areas as information exchange, supply of branded product distributor or joint promotions and advertising (Randall, 1994).

   The essential foundations of Trade Marketing are distribution, planogram, merchandising and price.

   Distribution:

   Make the product available to consumers, so this is the largest number of stores or outlets that have a relevance to the category. This distribution concept is used by ACNielsen Research Institute and called the weighted distribution, showing the percentage of retail outlets where the product is marketed (Randall, 1994).

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