Problem: Trade Allowances
Trade allowances are a common promotional practice. The most common are slotting allowances at supermarkets. Slotting allowances are fees that supermarkets charge brands to place their products on the supermarket's shelves. Discuss and evaluate the practice of slotting at supermarkets.
I. What are the criticisms of the practice of slotting at supermarkets?
II. What are the advantages of the practice of slotting?
III. Assess some efforts that some retailers, including P&G, have taken to rectify trade allowance problems. Have they been successful?
IV. Evaluate the pros and cons of pay-for-performance programs.