Trade Promotion Optimization
Introduction: Bahlsen Group is a baker of sweet biscuits. The company dates back to 1889 in Hannover, Germany. Its products are available in 80 countries worldwide. Its top brands are Bahlsen sweet biscuits, cakes and seasonal biscuits, as well as Leibniz snacks. In 2007, Bahlsen had net sales of €479 million. Because of the seasonal and impulse nature of its products, Bahlsen had struggled with its promotions.
The Challenge: In Germany, the Bahlsen brand stands for quality; one in every three biscuit lovers reaches for Bahlsen. As a result, Bahlsen Germany sold 100 million packages of sweet biscuits in 2007, enjoyed a market share of 17.6% and had 100% brand awareness. Despite strong brands and growth (4.6% sales growth from 2006 to 2007), Bahlsen saw the opportunity to improve various aspects of how it executes promotions with German retailers..
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