Shopper Marketing

Paul Barnett

• Publisher: Business Expert Press
• Year: 2016
• ISBN:
  9781631573583
• Topic: Business
• Subtopic: Consumer Behaviour
• Index: Business

The book follows the story of the Big Beverage Company, a large multinational company, whose main source of profit is coffee. Their growth has stalled though in the face of increased competition from private label brands, and consumption shifts to different channels. As their growth has slowed so too the total categories, and so one afternoon their biggest retail customer, Shopmart, calls to ask for their help in getting the category growing again. This sets the Big Beverage Company and their management team on a journey from being a brand-focused business, to one that understands how a broader emphasis on the category and its shoppers can lead to greater growth for themselves and their retail partners.

Chapter 1

The Key Points in This Chapter

• Without a compelling offer to the shopper, it is difficult for an organization’s strategy to be effective.
• Retailers and suppliers can work together to create value through focusing on the needs of the shopper. This is the profit source that they share a common interest in winning.
• It is beneficial for suppliers to work with retailers on value creating projects as some strategies that retailers employ can be value dilutive for suppliers.

Part A: The Phone Call

They had closed the quarter by pulling forward as many customer orders from the next month as possible. This was the third quarter in succession that they had been required to do this in order to reach their target. This just created a circular problem for the next quarter and so no one enjoyed working this way.

“We got there, but is this sustainable?” asked Jamie to the other ­members of the sales leadership team. There was grumbled agreement.

“I agree that this isn’t how we want to operate, but until we can get the new products to market, we’re going to have to grind it out” replied the Sales Director, Ben, trying to focus the team.

Jamie was the business manager for the largest channel of customers; his energy was infectious, both positive and negative, and grinding it out through the summer, his last with his wife before their first child arrived, was not something he was looking forward to.

Leaning forward, he looked across to Simon, their Trade Marketing manager, and challenged him for more support, “Is there anything we can do to bring the new lines forward?”

“I’m trying to have Go-Jo,” the project name for their new flavored milk powder, “ready two weeks early so we can sell the first orders in quarter four. I’m also pushing for a 1.5 kilogram pack of Choclo to be produced as a one-off promotional pack for everyone in September, but it’s not looking good.”

“I’m pushing where I can,” he continued, “I’ve spoken to all the brand project teams and made them aware of the situation, but from their point of view, market share is stable and so they’re reluctant to do anything that outside of the plan.”

“If we keep spending on promotions the way we are, they will have a problem with profit before long,” replied Jamie leaning back this time for emphasis, “my trade promotion spending is up 10 percent on last year; our baseline just isn’t strong enough.” Jamie’s phone began to flash; “It’s Amy, I better take this,” and he stepped away from the room leaving the rest of the team to work through their plans again.

“Hi Amy, what’s up?”

Amy was the buyer for their biggest customer, Shopmart. She was in her early thirties and a rising star at the company. She had taken on the hot beverages portfolio about six months ago after overseeing the return to profit of their seasonal confectionery range. In that role, she’d introduced allergy-free Easter eggs under their own private label, and worked with Cadbury to develop an exclusive range of Christmas products that reduced the need to price fight as regularly as they had been over the last decade. Hot beverages was one ...

Table of contents

• Cover
• Halftitle
• Title
• Copyright
• Dedication
• Abstract
• Content
• Acknowldgements
• Introduction
• Chapter 1
• Chapter 2
• Chapter 3
• Chapter 4
• Chapter 5
• Chapter 6
• Chapter 7
• Chapter 8
• Chapter 9
• Chapter 10
• Chapter 11
• Chapter 12
• Chapter 13
• Chapter 14
• References
• Index
• AdPage
• BackCover