BOGO offers, percent-off deals, sale prices, free gifts with purchase—all of these give shoppers the feeling they’re saving money. But on the flip side, these types of trade promotion management in CPG come at a significant investment for manufacturers. In fact, they’re often the second biggest expense on a company’s profit and loss statement.
With the current transforming economic headwinds like changing consumer habits, inflation, supply chain challenges, and rising tariffs- brands are finding it difficult to measure the effectiveness of their ongoing trade promotions strategy for CPG. This is the reason it is becoming imperative for brands to rethink their strategies.
A major Nielsen study from last year found that 55% of trade promotion dollars fail to grow the brand or the category—for either manufacturers or retailers. That means both sides need to take a closer look at the data, get hands-on, and think creatively to get better results.
So, we dug out some AI-driven trade promotion strategies that have proven their worth when it comes to skyrocketing ROI. Here we go!
Emphasizing Trade Promotion Strategies 2025 for CPGs
#1 Move towards autonomous TPM approach with Agentic AI
One of the most revolutionary shifts in 2025 is the integration of Agentic AI into trade promotion planning. Instead of merely analyzing data to recommend strategies, Agentic AI can set targets—such as boosting ROI, lifting sales, or improving penetration in key regions—and then independently chart out promotional calendars that align with those goals. These agents not only consider internal business KPIs but also factor in external elements like retail calendars, seasonality, supply chain constraints, and consumer behavior trends.
Additionally, AI agents can also autonomously take corrective actions like adjusting prices, updating planograms or optimizing promotions—to boost a new product’s chances of success, all while reducing the human intervention.
This shift not only enhances accuracy and agility in decision-making but also capitalize marketing and sales teams to focus more on strategical innovations rather than manual planning and coordination. The result is a more responsive, data-driven, and future-ready trade promotion ecosystem.
#2 Data-Driven Performance Monitoring
Effective trade promotion management in CPG depend on continuous measurement and learning. Use AI-driven platforms to monitor sales lift, customer response, promotional ROI, and inventory movement in real-time. Combine this with retailer feedback to grasp execution opportunities or challenges at the store level.
By tracking key metrices like redemption rates, incremental sales, and promotional compliance, CPGs can make informed decisions about what strategies to tweak, scale, or leave. In 2025, with access to AI and ML models, many brands are turning to predictive analytics to simulate promotion outcomes before execution— minimizing spend inefficiencies and improving success rates.
#3 In-Store Displays That Demand Attention
One of the most effectual ways to accelerate product visibility is via strategic in-store displays. Presently, customers are visual learners, and this grows the brand stickiness.
In 2025, as physical retail stores remains a crucial channel for many brands, CPGs need to go beyond shelf placement. Investment in premium spots like end caps (the end of aisles), standalone displays, and dump bins located in high-traffic areas of the store. These positions are proven to attract more shopper attention.
Add to this visually appealing branded packaging and signage that transparently communicates offers or product benefits. Consider collaborating with retailers to curate themed displays aligned with festivals, seasons, or popular events, improving relevance and driving impulsive purchases. Utilizing advanced softwares for digital signage can further enhance the impact of these displays by allowing dynamic content updates and targeted messaging. This ensures that promotional materials remain timely, engaging, and tailored to shopper behavior.
#4 Personalization at Scale
The consumer expectations are evolving at a rapid pace, personalization has become a bedrock for successful trade promotion management in CPG. Leading brands in 2025 will use not just technology and data to tailor their TPM approach by region or type, but down to particular segments. This includes providing targeted discounts based on demographic insights, purchase history, or loyalty behavior.
By leveraging CRM tools, AI-driven recommendation engines, and retail media networks, brands can provide relevant offer through apps, mail, and even in-store displays. Personalization ensures solid connections between the consumer and the brand, higher engagement rates, and better conversions. Which will eventually turn promotions into more than just a pricing game, but a brand building exercise.
#5 Collaboration is the key
Effective trade promotion management strategies thrives on relentless collaboration—bringing together finance, supply chain, sales, and workforce planning—unified by the intelligence of AI-driven tools such as -Profit Pulse.
No matter what process or systems are implemented, the most talked about thing in the boardroom is the relationship with the retailer. A combined mutually advantageous partnership builds trust and put-forward growth on both sides.
With real-time, shared data in place, stakeholders can respond swiftly to adjustments. Insight-powered decisions ensures that the right products are stocked at the right prices and geography, enhancing sales and customer engagement.
By developing a solid foundation, CPGs can unpack AI and analytical abilities, offering smart spend management, improved cross-functional performance, and more effective combined business planning with retail partners.
Final Thoughts: 2025 and Beyond
As we move through the middle of 2025, trade promotion strategies are no longer just about boosting volumes or offering discounts—they’re about crafting responsive, intelligent, and value-driven experiences for both retail partners and consumers.
With a growing emphasis on technology, Agentic AI represents a seismic shift, enabling CPG brands to transition from reactive to proactive strategies. This evolution unlocks new levels of business agility, innovation, and performance.
At Polestar Analytics, we specialize in driving this transformation. If you need any assistance with trade promotion, feel free to contact us today.
