3 Questions brands should ask to increase sales within the category and retailer
So you've made it on the shelves at a retailer, but the goal of increasing sales doesn't end with the set of your new products. Considerations must be made not only pre-item launch, but during and after as well. Many CPG companies and their representatives too often focus on looking at the behaviors of their average shopper, while failing to gather data that will give insights on how to react in-season and for the next program. The difference between data and insights, on a fundamental level, is knowing how to ask the right questions. An insight is finding that right signal in all of the noise - this is where the magic happens in increasing sales for your business. Here are 3 questions that you can start asking today:
1. How do I impact the category?
Work with a strong analytics team to understand your brand's sales growth and market share compared to other major retailers. What's most helpful to your retailer buyer, is not only understanding what happens to your products, but how your brand impacts the entire category. Remember, the retailer's goal isn't just to drive sales & margin to your products, but the overall category. Your brand could be increasing traffic to the whole aisle and this is something you'll want to highlight. Your promotional activity could be taking share away from a higher margin category and this is something that may need to be addressed. Our data and analytics team geeks out about finding these insights and when we uncover meaningful information that gets results, we become obsessed with doing more.
2. Where can I expand distribution and brand presence?
Don't go to your retailer and say, "I want more of my stuff on your shelves". Use data to pinpoint WHERE and WHY your presence should be expanded. Be honest about your brand performance by maximizing and right-sizing the assortment based on where you are winning and losing.
3. What is my optimal price?
Each category has different performance when it comes to price elasticity and even this can change throughout the year. In today's competitive retail environment, it's very important to determine the ideal price, not only focusing on regular retail pricing, but promotional and even clearance pricing as well.
So before heading to your next buyer meeting, make sure you have answers to all these questions. Merchandising opportunities are as diverse as the consumer are and we love to help unlock insights!