How to Create an A&P Plan that Wins Customers
Written by: Will Gordon
Securing a distributor and getting listed in the major grocery retailers is often seen as the prize when entering a new export market, but the real goal should have a longer-term focus. Achieving a sustainable rate of sale and growing this year-on-year is the major factor that secures the future of a product on the shelf.
An Advertising and Promotion (A&P) plan is a key component of success. Driving brand awareness and product trial, especially in the first two years, is so important that 76% of all respondents in our recent Annual Distributor Survey said this is one of the fundamental factors of success.
Obviously, the strategy will vary by export market and channel. A good in-market distributor should possess the internal team and expertise to help you formulate and implement a well-structured plan.
Considerations For A Successful A&P Plan
First and foremost, a solid understanding of the category and competitive landscape needs to be ascertained. Who are the main competitors? What is their pricing strategy (retail price and promotional pricing)? How frequent is the promotional cycle?
Retailers will also have their expectations as to how frequently a brand should take part in below-the-line campaigns (in-store marketing). Failure to participate in this type of activity could mean your product is scrutinised more closely when planograms are reviewed.
The plan must also suit the product. For example, if we are discussing an innovative brand such as a nootropic, a sampling programme (sometimes called a roadshow) that educates your consumers and allows them to taste the product will be highly effective.
On the other hand, if you are trying to take market share from a stalwart of the category that has had a leadership position for some time, then an aggressive price promotion strategy may work best.
The A&P plan must be part of a wider business plan. Generally, brands will spend the first two years in "investment mode". This investment must be sustainable and measured against forecasted off-take (sales) in your target channels.
How to Create an A&P Plan that Wins Customers
Know the customer. What are the likely drivers for purchase for the specific product, and how can A&P levers be applied?
Tailor the plan. Offline and online channels will have differing requirements, and a well-structured plan will have an integrated digital and in-store strategy that ensures all channels receive the attention they need.
Track, test, and learn. The plan is the first step. Working with a distributor team to properly implement activity and analyse resulting sales against A&P will inform success and a tailored longer-term strategy.
The Do’s and Don’ts of A&P Planning
Don’t underestimate the importance of A&P activity. Placing a product on a shelf and thinking it will sell itself is a very risky strategy.
Don’t set and forget. A&P is a costly, but absolutely necessary expense. A brand must understand the return on investment to inform future strategy.
Do think outside the box. For example, are there events or activities in the target market that are popular amongst your target audience? If so, would money be well spent on a sponsorship strategy?
Do work with a reputable distributor. Attempting to plan and implement an A&P plan in an offshore market, in a different time zone, is not an easy task. A solid partnership with an in-market distributor that shares a common goal will significantly increase the effectiveness of your A&P activity.