Margin Support Funding is a financial investment into the retailer model, not a shopper-facing mechanic.
Key considerations:
Purpose of the funding – what are you supporting?
Retailer margin impact – how much value is being transferred to the retailer
Pass-through expectation – whether the retailer is expected to reflect this in shelf price
Total cost – driven by unit volume and funding level
Scope of SKUs – which products the funding applies to
This type of funding directly affects:
Supplier NSV (Net Sales Value) (reduction)
Retailer gross margin (GM) (increase)
It does not directly drive volume, unless combined with other activity.
