Barilla TradePromoAndStats Prabir

Trade Promotions• Promotion-based strategy

Frequent Trade Promotions to an old-fashioned distribution systemDivided each year into 10 or 12 “canvass” periods of 4-5 weeks in length

corresponding to a promotional program.During any canvass period, a Barilla distributor could buy as much product as

desired to meet current and future needs. Incentives for Barilla sales representatives were based on achieving sales

targets set for each canvass period.Different product categories were offered during different canvass periods,

with the discount depending on the margin structure of the category.Typical promotional discounts were 1.4% for semolina pasta, 4% for egg

pasta, 4% for biscuits, 8% for sauces and 10% for breadsticks.Volume discounts were also offered – Barilla paid for transportation

Sales Reps @ Barilla

• Sales representatives were used more at DO’s than GD’s

Merchandise Barilla productsSet up In-Store PromotionTake note of competitor's prices, stockouts, new product introductionsWork out ordering strategies with the store management etc.Settled disputes about different discounts and deal structures.

Demand Fluctuation

Inventory @ Barilla Stats

Weekly Sales Figures @ Barilla

Distribution Ordering Procedure @ Barilla