Showing posts with label brand vulnerability. Show all posts
Showing posts with label brand vulnerability. Show all posts

Monday 18 April 2016

Tailoring your brand portfolio to new retail realities...

As the multiples struggle to adjust to the consumer's shift to smaller, cheaper, faster, closer, more convenient and online shopping by selling surplus outlets and trying to manage lower productivity caused by redundant space in their estates by culling SKUs, the consequences for brands are hopefully obvious.

In other words, with less shelf space available, only strong brands can maintain their facings, unless you can prove otherwise....

Moreover, brands are further threatened by the fact that much of the multiples' growth is via private label (if in any doubt, why not dig into your in-house Kantar data?), and discounters' via surrogate labels.., all adding to the need for new retail strategies..

In the face of these 'permanent' market changes, it follows that branded suppliers need to re-set what may be a pre-2008 approach by re-evaluating the relative appeal of their brand portfolios to suit current retail realities.

Essentially, this means fundamentally re-assessing consumer appeal, by brand, by retailer, vs. available competition to ensure each SKU of each brand has a defensible rationale to justify its on-shelf presence in each of the multiples.

In practice, this will mean you will have a different brand portfolio for each of the multiples, with possible regional variations to match local need.

Finally, any of your brands that do not meet these criteria should be diverted to other channels, before the multiples do it on your behalf...