When even £1 is too much in a pound-shop...

An article in today’s Daily Mail gives 15 examples where well-known brands priced at £1 in a pound-shop retail at approximately 85p elsewhere (worth a look to see if you are included).

Obviously we may all be moving to a position where shelf prices are the responsibility of the retailer, and any damage to brand credibility will be at the expense of the name above the shop-door…

However, even the savvy consumer may not be expert in such subtleties of pricing/branding dynamics and will simply feel conned by the brand-owner, thereby triggering the tell-10-friends reflex…

Better perhaps to reduce the retail margin on the £1 SKU in regular – i.e. non pound-shop distribution – to a level that discourages reductions in price below a pound.

Risking a de-listing?
Question is whether you really want/need mainstream listings of your £1 SKUs?

UK Budget 2016 – how it works in household English

'Back in 10 minutes', a study in communication....

Following my walk to a local convenience store for the Sunday papers, I was confronted by a locked door and a notice: 'Back in ten minutes'

This phrase followed all the guidelines of clear simple communication, bar the key element that mattered...  As a result, I was left pondering whether we were at the end, middle or start of the 10-minute waiting period'. Given all the freedom of a deadline-free Sabbath, I was able to further ponder if time could be taken literally in such cases.

In other words, in our working lives we are often confronted by millisecond put-offs such as 'With you in a second' from a shop assistant busy finishing a text... Or even closer to home, 'Dave, got a minute to OK our response to the Marmite price-hike?'

Anyway, by that time, Ahmed the shop owner arrived, reopened the door and following a brief discussion re the problem of simple communication being the most difficult, handed me my change with an invitation to 'Get a life, Brian' and returned to his Sabbath-free deadlines.....

Post-Marmite Negotiation 2016?

In an Amazonian world, Just-in-time is no longer adequate...

Walmart chase Amazon, catch up not guaranteed...

News that Walmart are accelerating their roll-out of warehouses, robotising logistics, randomising warehouse shelf- placement, speeding up delivery and devouring a host of e-startups all points to the fact that they have simply applied to enter a race with the advantaged innovator...

However, satisfied users of Amazon's service already take for granted infinite choice, 1-click ordering, 100% availability, 1-day (Prime-free delivery) and no-quibble returns.....

In other words, Amazon's entry requirements need to be met before Walmart can start running...

However, they will add interest to the race, and provide suppliers with a little more choice in what was beginning to seem like a 1-horse contest.

Suppliers that want to optimise online, also need to start with these Amazonian entry-standards, or move back to the sidelines...

How has Asda responded to Morrisons’ ‘Price Crunch’ campaign?

Asda's round of price cuts of the 9th September suggests the following implications:

Where at: From a supplier’s point of view, the issue centres on the 609 products (73% on branded items) that Asda reduced in terms of shelf-prices on 8th September, by up to 34%

Where headed: Key will be the extent to which other retailers price-cut on these SKUs, if seen to drive incremental traffic into Asda

Effect on you: Suppliers of these SKUs will be impacted by consumer perception of ongoing perceived value, whilst suppliers of competitive SKUs will need to consider their options…

Action: Either way, worth digging into the Brandview analysis and exploring its potential impact on your mults business

A Retailing No-brainer: Give the people what they want...

Waitrose Hove, Sunday 02-10-2016, 1130