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Co-op vs. Store Branding

Co-op vs. Store Branding

It’s that time of year again. Co-op advertising for 2015 is due to be submitted for reimbursement. In the midst of that paperwork, you need to find out from your vendors what your co-op allowance is for this year and make a plan on how best to utilize it. A lot of vendors have made changes to their co-op marketing guidelines and others are asking for detailed plans up front so their teams can review and approve prior to placement. When working out your co-op plan for 2016 make sure to really think about what is best for your company. While the thought of using all co-op dollars available makes the accountant part of your brain happy, does that mean most of your messaging to consumers would be brand oriented? Depending on your overall marketing budget, it would be very easy to spend all of your dollars pushing specific brands at your store. If you have some brands that count for very large percentages of your overall purchases, it may make sense to maximize the co-op allowance. However, do consumers come into your store asking for those specific brands or do they just come in and end up buying that brand? There is a huge difference. At the end of the day, YOUR brand is what matters most. We have seen too many retailers neglect their own brand in order to get as much credit from vendors as possible. Short term this might help their cash flow, but neglecting your own brand makes the long term very bleak. The smart, successful retailers take a look at each co-op allowance and decide which brands should be promoted. If you have brands that you have promoted in the past but sales didn’t increase…do not spend a lot of money on that brand again. Push your own! Any time you need assistance with planning your marketing and co-op allowances contact We know you and are here to help.
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