The first Monday in December comes shortly after payday for many consumers and in recent years has consistently been the busiest day for online retailers. Today Visa predicts that online shopping will be up 21 per cent on the equivalent day last year, making it the biggest online shopping day ever in the UK, a sentiment echoed by online retailers throughout the UK.
However, what if every Monday was Mega-Monday, on the way to 24/7?
In other words, why not multiply your online sales today by 365 and consider the resulting vision of the online future....? Moreover, in an essentially zero-sum game this online growth has to be at the expense of traditional retail...
Assume also that as consumers we respond positively to the Amazonian experts as they raise our 'norm-bar' for online access and service level, making non 1-click secondary players seem clunky by comparison...
Accepting the above, what can you do omnichannelwise to realise your fair share of the 24/7 dream?
Alternatively, why not ignore the signs and be surprised by the Mega-nightmare...?
Monday, 3 December 2012
Friday, 30 November 2012
Supermarkets agreement to prices and discounts code – a brand responsibility?
By the time legislation catches up with a problem, the damage has already been done. Thus, having made significant progress in building consumer trust in private label and store ‘brand’, retailers forget that branding is really a guarantee that every time the tin is opened, its contents are the same or better than the consumer’s previous experience.
Having come so far, retailers have progressively undermined that trust by manipulation of prices and discounts to the disadvantage of the regular shopper – ‘secure’ in the knowledge that they have adhered to the letter rather than the spirit of the law…
It will be a pity if the new code is allowed to simply become a more demanding set of parameters for further manipulation.
Hopefully, good retailers will see a major opportunity for real differentiation – scope to become the champion of the people by representing transparent value via clear pricing and easy comparison, while competitors allow shoppers’ creeping suspicion to dilute their hard-won brand equity…
However, the real issue for brand owners has to be the realisation that it is their responsibility, rather than that of the retailer, to be the custodian of brand equity at point of purchase.
Brand owners are busy applying all the principles of shopper marketing in the aisle at incremental expense. A pity to allow all gains to be sacrificed at the checkout.
It is vital to ensure that a link is maintained with brand consumers in order that perceived value is exceeded by actual performance by helping shoppers to count and appreciate real value
Making the numbers add up would help…
Having come so far, retailers have progressively undermined that trust by manipulation of prices and discounts to the disadvantage of the regular shopper – ‘secure’ in the knowledge that they have adhered to the letter rather than the spirit of the law…
It will be a pity if the new code is allowed to simply become a more demanding set of parameters for further manipulation.
Hopefully, good retailers will see a major opportunity for real differentiation – scope to become the champion of the people by representing transparent value via clear pricing and easy comparison, while competitors allow shoppers’ creeping suspicion to dilute their hard-won brand equity…
However, the real issue for brand owners has to be the realisation that it is their responsibility, rather than that of the retailer, to be the custodian of brand equity at point of purchase.
Brand owners are busy applying all the principles of shopper marketing in the aisle at incremental expense. A pity to allow all gains to be sacrificed at the checkout.
It is vital to ensure that a link is maintained with brand consumers in order that perceived value is exceeded by actual performance by helping shoppers to count and appreciate real value
Making the numbers add up would help…
Wednesday, 28 November 2012
Top five scams impacting online xmas shoppers
Top five holiday scams:
- Christmas eCards: links to eCards may contain malware
- Parcel delivery notifications: fake delivery notification emails may infect computers
- Fake order confirmations: fake order confirmation emails causing shoppers to think someone ordered a product under their name
- Holiday screen savers: Holiday-themed screen saver downloads can contain malware
- Social media malware: include fake Facebook Christmas competitions, video links with malware, and Twitter viruses
Managing online trust
Give the fragility of many shoppers confidence in online purchasing, it is vital that suppliers and retailers build consumer education and xx into their online communication. The Catch 22 is that such education needs pitching in ways that reassure rather than further de-stabilise nervous shoppers.
However, the real solution has to be strong online branding.
If in any doubt, think what Amazon has achieved by distilling all consumer reluctance into 1-Click shopping…
Monday, 26 November 2012
Amazon-the-grocer moves from 22,000 to 150,000 products since July 2010
With a sevenfold increase in the groceries it offers online in barely two years, ‘having completely met expectations and growing great’, in a flatline market, Amazon has to be growing at the expense of traditional grocers. Whilst some big-lunged suppliers and retailers may decide to await the outcome of possible government moves ref alleged tax issues, proactive suppliers will take a positive approach and follow the market…..
Managing Amazon-the-grocer
This means accepting the fact that Amazon are going to go all the way with food, offering the simplicity of 1-click ordering, pick-up/drop-off convenience on the back of a food range that knows no limits, and no-quibble returns, all tailored in terms of consumer tell-your-friend delight.
It also means staffing Amazon with NAMpower matched to potential, rather than history, of a quality that can scope out and deliver an omni-channel strategy that integrates with all other ways of buying your products, seamlessly…using the Amazon strategy as a template for all other retail.
How to recognise this Amazing NAM?
Big-thinking question: ask candidates how Amazon might finesse its home delivery within the M25…
Disqualifying hint: In terms of ways and means, given Amazon’s growth record and prospects, how long do you think it would take them to raise the £386m it would take to buy Ocado at today’s share price?
Managing Amazon-the-grocer
This means accepting the fact that Amazon are going to go all the way with food, offering the simplicity of 1-click ordering, pick-up/drop-off convenience on the back of a food range that knows no limits, and no-quibble returns, all tailored in terms of consumer tell-your-friend delight.
It also means staffing Amazon with NAMpower matched to potential, rather than history, of a quality that can scope out and deliver an omni-channel strategy that integrates with all other ways of buying your products, seamlessly…using the Amazon strategy as a template for all other retail.
How to recognise this Amazing NAM?
Big-thinking question: ask candidates how Amazon might finesse its home delivery within the M25…
Disqualifying hint: In terms of ways and means, given Amazon’s growth record and prospects, how long do you think it would take them to raise the £386m it would take to buy Ocado at today’s share price?
Friday, 23 November 2012
Pit-stop perfection: Formula 1 teams reveal their split-second technology
pic: sportinglife.aol.co.uk
Lack of time to have a haircut or change a set of tyres can be indicators that 24/7 NAMs need to review their time-management skills.With this weekend's Grand Prix in Brazil marking the climax of the Formula 1 season, there may be lessons to learn from how top Marussia and McLaren drivers use technology to try to shave fractions of a second off a trip to the pits.
BBC News went behind the scenes with the two teams to learn how it simply takes 4-men per tyre and a heap of state-of-art technology to make a difference…Full 3.23 minute video here.
Incidentally, for those NAMs that like a target, McLaren recorded the world's fastest Formula 1 pit stop during the German Grand Prix in July this year, with a stationary time of 2.31 seconds, while they changed Jenson Button's tyres.
So, with the right attitude and tools, and a slightly faster car, it can well be possible to fit in that last-minute dash to the buyer’s waiting-room queue, with every hair cut to perfection…
Have a full 172,800-second weekend, from the NamNews team!
Thursday, 22 November 2012
Taking space-management into the warehouse - a networking aid for NAMs?
Given that a NAM’s effectiveness increasingly depends upon multifunctional motivation, and with warehousing efficiency a key cost in the pricing equation, then any insight into optimising warehouse space has to count. This is why the fact that Mini Bendi have scooped the Innovation Award at Asda’s annual Store Proposition award ceremony is closer to the NAM role than you think.
The Asda view
Simon Grass, Asda Back of House Development Manager commented: “The Mini Bendi allows us to significantly drive the use of the cube in our back of house areas as it can work in the narrow aisle format and maximise the usable height available, but due to its way of working, that allows us to have pedestrian pick within the same area permitting the stores to drop and fill effectively. This supports the reduction in the building footprint and thus improves the building’s selling efficiency as we can either build a smaller store or increase the selling sq ft. It also allows us to lower the height of the building as we can now store as many pallets above ‘pedestrian pick’ in narrow aisles, as we could in the reach truck aisles at height, which is especially welcomed by the local planning authorities in certain areas of the country.”
A networking opportunity?
In a place where space is money, the Mini Bendi, which saves warehouse space, increases shop floor selling space and frees up congestion in the pedestrian pick area, offers NAMs a way of opening a productive networking dialogue with both colleagues and ‘back-of-store’ customer contacts.
Why not pass a link to relevant contacts and see it make a difference?
Wednesday, 21 November 2012
'3D tape measure' for online shoppers, a pointer for NAMs?
Scientists from Surrey University and design experts from the London College of Fashion are developing a programme which can take precise waist, hip, chest and other measurements from camera images.
Using the person's height as a starting point, the software will be able to build up a 3D image and estimate their size at various different points on the body, based on their overall proportions.
Why it matters...
The result will be a more accurate sizing guide than systems based on waist size or a "small/medium/large" scale, which rely on limited measurements and the buyer's perception of their own body size. Instead, the programme will use the exact measurements of each individual garment to predict which size will be the best fit, avoiding shopper tendency to order several sizes of the same garment, just-in-case…
Ultimate in shopper engagement
For fmcg NAMs, the issue is not how much extra clothes it sells, but the degree of competition it represents to ‘regular’ fmcg in terms of shopper engagement (coupons, leaflets, competitions, pale by comparison….).
This advance in meeting online shopper needs really forces fmcg suppliers to find more creative ways of engaging with the shopper, like tying self-measure monitoring to dietary aids/foods, for starters....
Time to encourage your marketing colleagues to re-assess and engage with consumer needs, before retailers add a real difference to private label?
Using the person's height as a starting point, the software will be able to build up a 3D image and estimate their size at various different points on the body, based on their overall proportions.
Why it matters...
The result will be a more accurate sizing guide than systems based on waist size or a "small/medium/large" scale, which rely on limited measurements and the buyer's perception of their own body size. Instead, the programme will use the exact measurements of each individual garment to predict which size will be the best fit, avoiding shopper tendency to order several sizes of the same garment, just-in-case…
Ultimate in shopper engagement
For fmcg NAMs, the issue is not how much extra clothes it sells, but the degree of competition it represents to ‘regular’ fmcg in terms of shopper engagement (coupons, leaflets, competitions, pale by comparison….).
This advance in meeting online shopper needs really forces fmcg suppliers to find more creative ways of engaging with the shopper, like tying self-measure monitoring to dietary aids/foods, for starters....
Time to encourage your marketing colleagues to re-assess and engage with consumer needs, before retailers add a real difference to private label?
Tuesday, 20 November 2012
Bionic Mannequins are Keeping an Eye on Shoppers to Boost Luxury Sales
Results
The €4,000 ($5,072) device has spurred shops to adjust window displays, store layouts and promotions to keep consumers walking in the door and spending.
According to Bloomberg, Benneton US are among five retailers currently trialling the mannequin camera.
A step too far?
Like all attempts to monitor shopper behaviour, the innovation raises privacy issues for both staff and shoppers. Staff issues could be managed via loading of all personnel pics into the software and eliminating them from the tracking, hopefully….
However, given that privacy tends to be less of an issue when consumer needs are being met via tailored offerings, like with Amazon’s relevant emails, providing the store can demonstrate reactive use of the insight, then size and quality of basket will deliver the ultimate endorsement.
Monday, 19 November 2012
The letter vs. the spirit of multibuy promotions
Given the media coverage of Which? latest research on ‘misleading’ promotions, the key issue is how the consumer-shopper will react to creeping realisation that no-one can be trusted…
As a person or company works to the edge of ‘right and wrong’ they might acknowledge that whilst their observation of the spirit of the law might be in question, strictly speaking they remained within the letter of the law... In an environment where loyalty to a brand or store is increasingly fragile, spirit and letter become indistinguishable, especially to a savvy consumer, and, as you know we are all becoming savvy consumers... This means that if a deal even seems wrong, the damage is already done..
The Which? findings
Which? year-long investigation into "misleading" pricing tactics by the major chains indicated that seven out of 10 people prefer straightforward discounts to multibuy offers.
Multibuy deals have become a staple of supermarket promotions in recent years, and now apply to nearly half the goods on offer in a supermarket at any one time. Which? said that of the 115 products that it examined in the first half of this year, 46% of the time they were on multibuy, compared with 35% of the time in the first half of 2011.
Increasing suspicion
But there are signs that consumers have become increasingly disillusioned by the value on offer in supermarket promotions. Around one in 10 products on supermarket shelves increased in price when they went from the previous standard price to the new multibuy price, then decreased again when the promotion ended.
Losing the consumer...
The only real issue for suppliers and retailers is whether, having been ‘mislead’ by a promotion, the shopper associates the deception with the multibuy itself, the brand involved or the shopkeeper… In other words, does the shopper dismiss multibuys and revert to ‘straight’ sales, switch to another brand or change stores…
Given the upfront investment in getting the consumer-shopper to this point, it seems a pity to then kick ‘em over to the opposition….
As a person or company works to the edge of ‘right and wrong’ they might acknowledge that whilst their observation of the spirit of the law might be in question, strictly speaking they remained within the letter of the law... In an environment where loyalty to a brand or store is increasingly fragile, spirit and letter become indistinguishable, especially to a savvy consumer, and, as you know we are all becoming savvy consumers... This means that if a deal even seems wrong, the damage is already done..
The Which? findings
Which? year-long investigation into "misleading" pricing tactics by the major chains indicated that seven out of 10 people prefer straightforward discounts to multibuy offers.
Multibuy deals have become a staple of supermarket promotions in recent years, and now apply to nearly half the goods on offer in a supermarket at any one time. Which? said that of the 115 products that it examined in the first half of this year, 46% of the time they were on multibuy, compared with 35% of the time in the first half of 2011.
Increasing suspicion
But there are signs that consumers have become increasingly disillusioned by the value on offer in supermarket promotions. Around one in 10 products on supermarket shelves increased in price when they went from the previous standard price to the new multibuy price, then decreased again when the promotion ended.
Losing the consumer...
The only real issue for suppliers and retailers is whether, having been ‘mislead’ by a promotion, the shopper associates the deception with the multibuy itself, the brand involved or the shopkeeper… In other words, does the shopper dismiss multibuys and revert to ‘straight’ sales, switch to another brand or change stores…
Given the upfront investment in getting the consumer-shopper to this point, it seems a pity to then kick ‘em over to the opposition….
Thursday, 15 November 2012
Happy own-brand Xmas, how Ansoff can help?
Given Sainsbury’s predictions that this will be an own brand Christmas as hard-up Britons “splash out” to enjoy a family Christmas, making their money go farther via own-brands perhaps the Ansoff Matrix can spell out the moves and help suppliers to anticipate the impact…?
As you know, Ansoff identifies four ways of growing a business by selling:
- More current products to current customers
- New products to current customers
- Current products to new customers
- New products to new customers
How Sainsbury’s could increase own-brand sales
More current products to current customers:
Essentially, as most produce sales are own-brand, coupons and keen prices and store-level assortment could encourage purchase of larger portions of Christmas meats turkey, fruit & veg, with pricing delicately balanced to avoid over-purchase/waste….making current customers happier
New products to current customers:
Here the emphasis could be on encouraging purchase of complementary Christmas items both food and non-food, brands & own-brands, with in-store promotion/theatre and linked couponing to tease custom away from branded alternatives and other mults/channels via current JS customers in the aisle – making current customers even happier....
Current products to new customers:
By studying the profile of their current customer, JS could seek out new shoppers of similar profile, and try to attract them to the store via the own-brand products that appear to appeal to current JS customers, given that they probably have similar appetites. These new customers will need to be attracted and retained by a combination of virtually one-to-one communication and coupon-swaps to encourage a first-time switch from their traditional Christmas destination. To achieve an acceptable ROI, this has to result in an unprecedented and compelling experience, well suited to the JS approach.
This will probably be the most competitive segment as Tesco tries to recover lost share/customers and retain its current customers via its £1bn investment programme…
New products to new customers:
This high risk alternative means trying to attract new shoppers and sell them new products, targeting consumers that are unaccustomed to the JS experience, with products that are new to JS, a double-whammy that may attract the risk-seekers, but will probably play a small part in own-brand Christmas..
So, from a supplier’s point-of-view, this is all about own-brand, wrong!
This is about how a skilled and systematic retailer is going to make this an unforgettable own-brand Christmas, using differentiation to build and hold an enlarged customer-base, at the expense of brands…unless suppliers make Ansoff work even better for their brands…
PS For insight on the subtle moves see our free paper : 4 generations of private label
As you know, Ansoff identifies four ways of growing a business by selling:
- More current products to current customers
- New products to current customers
- Current products to new customers
- New products to new customers
How Sainsbury’s could increase own-brand sales
More current products to current customers:
Essentially, as most produce sales are own-brand, coupons and keen prices and store-level assortment could encourage purchase of larger portions of Christmas meats turkey, fruit & veg, with pricing delicately balanced to avoid over-purchase/waste….making current customers happier
New products to current customers:
Here the emphasis could be on encouraging purchase of complementary Christmas items both food and non-food, brands & own-brands, with in-store promotion/theatre and linked couponing to tease custom away from branded alternatives and other mults/channels via current JS customers in the aisle – making current customers even happier....
Current products to new customers:
By studying the profile of their current customer, JS could seek out new shoppers of similar profile, and try to attract them to the store via the own-brand products that appear to appeal to current JS customers, given that they probably have similar appetites. These new customers will need to be attracted and retained by a combination of virtually one-to-one communication and coupon-swaps to encourage a first-time switch from their traditional Christmas destination. To achieve an acceptable ROI, this has to result in an unprecedented and compelling experience, well suited to the JS approach.
This will probably be the most competitive segment as Tesco tries to recover lost share/customers and retain its current customers via its £1bn investment programme…
New products to new customers:
This high risk alternative means trying to attract new shoppers and sell them new products, targeting consumers that are unaccustomed to the JS experience, with products that are new to JS, a double-whammy that may attract the risk-seekers, but will probably play a small part in own-brand Christmas..
So, from a supplier’s point-of-view, this is all about own-brand, wrong!
This is about how a skilled and systematic retailer is going to make this an unforgettable own-brand Christmas, using differentiation to build and hold an enlarged customer-base, at the expense of brands…unless suppliers make Ansoff work even better for their brands…
PS For insight on the subtle moves see our free paper : 4 generations of private label
Wednesday, 14 November 2012
Delivery leverage for on-time supply - Walmart pays upfront
Mexico's leading retailer Walmex has made early payments totalling US$326 million to its suppliers to make sure they deliver products on time for Thanksgiving and for the Christmas season. This has to be an indicator that when the circumstances are right, even the world’s biggest retailer will pay for goods in advance.
When you take into account that retailers in Mexico pay in 60-90 days, it can be seen that Walmart are in fact paying up to 6 months earlier than suppliers would normally have been paid…
Why a retailer can pay upfront
In practice, being cash-rich in that the consumer pays on receipt of goods, a retailer is capable of, and willing to pay in advance, on delivery or up to 90 days later, with or without settlement discount. In the case of private label, a retailer can even contribute to the investment in special plant, buy the raw material and ingredients and even contract to purchase at a given price for up to five years in order to help the supplier to amortise investment.
It all depends on the deal….
For this reason, it is vital that suppliers always have a clear idea of the financial dimensions of their relationship with individual retailers. This means being realistic about the pulling-power of their brand vs. available alternatives in the eyes of both consumer and retailer.
Running the numbers, both ways...
Based on this potential leverage, it is essential to calculate each element of the deal in terms of actual/estimated cost and also the incremental sales to the retailer in order to break even. It is then necessary to calculate what the retailer ‘gets’ from the brand in terms of margin, free credit, settlement discount, trade funding and above-the-line support in addition to service level, rotation, availability, exclusivity and priority when stocks are scarce, all set against their sales equivalent required to generate this total investment.
In other words, by listing the brand, a retailer on 5% net profit needs sales of £20k for every £1k received from a supplier…this needs bringing out in negotiation!
Going to ‘see’ the buyer without having run the numbers in this manner is worse than going in blind, especially if your competitor, without your brand benefits, knows and can use the financials, has eyes wide open…
Incidentally, before emailing the Asda buyer, it might be prudent to keep in mind that with planned purchases of $6.4bn in Mexico for Q4, Walmex are in fact paying for $326m in advance, i.e. 5% of purchases…
When you take into account that retailers in Mexico pay in 60-90 days, it can be seen that Walmart are in fact paying up to 6 months earlier than suppliers would normally have been paid…
Why a retailer can pay upfront
In practice, being cash-rich in that the consumer pays on receipt of goods, a retailer is capable of, and willing to pay in advance, on delivery or up to 90 days later, with or without settlement discount. In the case of private label, a retailer can even contribute to the investment in special plant, buy the raw material and ingredients and even contract to purchase at a given price for up to five years in order to help the supplier to amortise investment.
It all depends on the deal….
For this reason, it is vital that suppliers always have a clear idea of the financial dimensions of their relationship with individual retailers. This means being realistic about the pulling-power of their brand vs. available alternatives in the eyes of both consumer and retailer.
Running the numbers, both ways...
Based on this potential leverage, it is essential to calculate each element of the deal in terms of actual/estimated cost and also the incremental sales to the retailer in order to break even. It is then necessary to calculate what the retailer ‘gets’ from the brand in terms of margin, free credit, settlement discount, trade funding and above-the-line support in addition to service level, rotation, availability, exclusivity and priority when stocks are scarce, all set against their sales equivalent required to generate this total investment.
In other words, by listing the brand, a retailer on 5% net profit needs sales of £20k for every £1k received from a supplier…this needs bringing out in negotiation!
Going to ‘see’ the buyer without having run the numbers in this manner is worse than going in blind, especially if your competitor, without your brand benefits, knows and can use the financials, has eyes wide open…
Incidentally, before emailing the Asda buyer, it might be prudent to keep in mind that with planned purchases of $6.4bn in Mexico for Q4, Walmex are in fact paying for $326m in advance, i.e. 5% of purchases…
Monday, 12 November 2012
Making more of existing traffic in supermarket convenience….
With more than 1-in-20 shoppers are leaving supermarket convenience stores having failed to spend all they intend, according to him! research & consulting, it follows that improved availability will optimise existing traffic, without adding another shopper...
At a time when every little helps, it seems a no-brainer to respond to the 5,000 shoppers surveyed at supermarket convenience stores, including Tesco Express, Sainsbury’s Local, M-Local and Little Waitrose, that report the main reason for these failed purchases is poor availability. Moreover, failure to buy one product in smaller format stores, when shoppers only need two or three, means a significant proportion of a shopper’s needs are left unfulfilled.
Losing business in the aisle
As you know, a brand’s consumers exhibit different need-sets as they shop different store formats, and retailers need to tailor both the offering and layout to suit, or suffer business drift…
In the current climate, suppliers and retailers invest heavily in presenting the offering to the consumer. It seems a pity to discard that consumer as shopper when they respond via a more convenient store of their choice…
Moreover, any additional traffic arising from more satisfied shoppers ‘telling a friend’ will be truly incremental..
At a time when every little helps, it seems a no-brainer to respond to the 5,000 shoppers surveyed at supermarket convenience stores, including Tesco Express, Sainsbury’s Local, M-Local and Little Waitrose, that report the main reason for these failed purchases is poor availability. Moreover, failure to buy one product in smaller format stores, when shoppers only need two or three, means a significant proportion of a shopper’s needs are left unfulfilled.
Losing business in the aisle
As you know, a brand’s consumers exhibit different need-sets as they shop different store formats, and retailers need to tailor both the offering and layout to suit, or suffer business drift…
In the current climate, suppliers and retailers invest heavily in presenting the offering to the consumer. It seems a pity to discard that consumer as shopper when they respond via a more convenient store of their choice…
Moreover, any additional traffic arising from more satisfied shoppers ‘telling a friend’ will be truly incremental..
Friday, 9 November 2012
'Boots the Grocer' - How Walgreens and Musgrave are helping them become a force in UK convenience…
Given that Walgreens, Boots 45% partner’s experience of food in pharmacy, give c15% of their store space to food, coupled with the Musgrave trial of food-to-go in Boots’ branches means that ‘Boots the Chemist’ could become a big competitor in the UK convenience landscape.
A new report from him! focuses on the Boots / Musgrave food range trial, and new exclusive shopper feedback shows that shoppers are excited about the extended range of food products being trialled in 11 Boots stores. Looking to Boots to provide healthier alternatives, 58% said that they are likely to buy from this new food range at Boots in the future.
Why this initiative matters to everyone...
Given their track record, traditional suppliers to Boots will not underestimate the ability of this global player to expand synergistically via the right partners. Moreover, this logical brand-stretch via healthy food from a quality convenience retailer, combined with Boots retail footprint and regular traffic, has to represent a major breakthrough in the convenience sector, for both retailers.
Implications in a zero-sum market
The obvious implications in terms of relative space, ease-of-access and increased buying muscle means that it is important therefore that all suppliers tap into the Walgreens food background and link this with Musgrave’s quality convenience-experience in order to adequately factor this innovative food range trial into your trade strategies…
Full details of the Walgreens-Boots merger, the Boots-Musgrave trial and shopper reactions in the him! report
A new report from him! focuses on the Boots / Musgrave food range trial, and new exclusive shopper feedback shows that shoppers are excited about the extended range of food products being trialled in 11 Boots stores. Looking to Boots to provide healthier alternatives, 58% said that they are likely to buy from this new food range at Boots in the future.
Why this initiative matters to everyone...
Given their track record, traditional suppliers to Boots will not underestimate the ability of this global player to expand synergistically via the right partners. Moreover, this logical brand-stretch via healthy food from a quality convenience retailer, combined with Boots retail footprint and regular traffic, has to represent a major breakthrough in the convenience sector, for both retailers.
Implications in a zero-sum market
The obvious implications in terms of relative space, ease-of-access and increased buying muscle means that it is important therefore that all suppliers tap into the Walgreens food background and link this with Musgrave’s quality convenience-experience in order to adequately factor this innovative food range trial into your trade strategies…
Full details of the Walgreens-Boots merger, the Boots-Musgrave trial and shopper reactions in the him! report
Thursday, 8 November 2012
Morrisons losing share - what would you do?
According to latest results with a 2.1% fall in like-for-like sales, Morrisons are losing share vs. the other mults, apparently due to insufficient presence in convenience and online….
Essentially, they are doing the right things, promoting no-nonsense value for money to a hard core of loyal users, who are perhaps hurting more than most in the current climate. However, the company needs to drive its share price in order to remain autonomous, and independent…
How to help
Every salesman, myself included, ‘knows’ how to run a hotel, a pub, and even a shop.
So what would you do if you were in Dalton Phillips’ shoes? All ideas and suggestions welcome, at least in Kamblog…
For starters:
The one-to-one approach with existing customers, the most valuable asset
Essentially, they are doing the right things, promoting no-nonsense value for money to a hard core of loyal users, who are perhaps hurting more than most in the current climate. However, the company needs to drive its share price in order to remain autonomous, and independent…
How to help
Every salesman, myself included, ‘knows’ how to run a hotel, a pub, and even a shop.
So what would you do if you were in Dalton Phillips’ shoes? All ideas and suggestions welcome, at least in Kamblog…
For starters:
The one-to-one approach with existing customers, the most valuable asset
- Work on the core users: a basic business-building principle, they are already sufficiently satisfied to visit your store regularly, presumably in preference to other retailers
- Find out who they are, where they live and look after them (social marketing/media, networking, online)
- Treat them well as individuals and they may even tell their friends. In other words, find out why they came in and make sure their needs are satisfied (store-level assortment, availability, instore theatre, shopper-marketing )
- In effect, sell more of their current requirements, where feasible
- Attempt to help them buy appropriate new products, rather than selling to them
- ‘Follow them home’: after-sales checking for satisfaction via e-networking
- Ideally via recommendations from current customers (back to rewarding satisfied current customers)
- Attracting ‘spontaneous’ new custom is too costly and takes longer than you have…
- Shop staff look after 450 categories, a supplier NAM manages three, maximum
- NAMs can generate 20 ideas per category, all they need is access..
- NAMs represent pan-market breadth, in that they know how their categories are sold in most types of outlet, a wealth of insight, available on tap..
- Many suppliers are willing to shopper-market, and want to influence the shopper in the aisle
Wednesday, 7 November 2012
Effective projects – the vital ingredients…
Effective projects start with an exit strategy, in turn becoming the basis for the project objective, a description of the end result…
Criteria for Practical Objectives:
Definition of basic purpose, Timed, Measurable, Worthwhile, Achievable, Compatible, Agreed, Communicated clearly, Reviewed regularly...
Example Objective:
As a result of implementing the plan, the following will have happened:
- Achieved successful launch of new variant
- Sales grown by 12%
- Profits grown by 11%,
- Increased distribution to 78% by month two of new brand
- Incremental business of £450,000
- By month 7 have achieved 70% of full year target
Anything less is simply hope masquerading as achievement….
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