Standing in front of the shelf with promotions in the store, we often see a resultant of 2 different approaches - Producer and Retailer.
From the Producer's side, the activities are planned by marketing and Trade Marketing, which form a calendar of activities for KAM, who in turn negotiates with the buyer of the Retailer.
Promotion shown in the picture, from the so-called "added value + 50%". For the customer it is a very attractive promotion in itself. Unfortunately for retailer, most likely it worked with the simplest system of configuring the promotion, that is, if we have something in the promotion, you have to lower the price, and it has been reduced by more than 20%, giving it off its margin. The producer has invested in an additional product and special packaging, and meanwhile, he has a promotion on the shelf, which may affect the positioning of the whole brand. Retailer received a very attractive product, and sells it with a heavily reduced margin. The client is very happy, but in the interest of the producer and retailer is much closer cooperation in the planning of promotional activities.