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The Biggest P&L Line Item You’re Not Paying Enough Attention To

The Biggest P&L Line Item You’re Not Paying Enough Attention To

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Many organizations avoid the topic of trade spend for a variety of reasons despite the fact that trade is often the second largest line item on the P&L and may account for 30% of gross sales or more in some categories. Businesses with sub-optimal trade spend programs generally fall into one of a few categories:

  • Ivory tower advertisers
  • Head in the sand
  • Rollovers
  • Diagnosed but treatment lacking

In this Executive Insights, L.E.K. Consulting’s Vassilis Economides, Alex Evans, Manny Picciola and Rob Wilson offer three ways to reorient your approach to maximizing trade spend effectiveness, including understanding what consumers really want and engaging channels as equal partners in the trade investment strategy