Retail Product Survival……..How it’s done!
Getting your product onto a mass retailer’s shelf is only the tip of the iceberg when it comes to product success. Once the product is placed….it goes into the Survival Mode!
Have you ever looked down the aisle at your local Walgreens? What is it that you see? PRODUCTS, millions of them; this friend is the start of your product’s “survival blues.” How on earth are you going to keep this nice perch on this shelf? Only with SALES…SALES…SALES….and more SALES!
Imagine for a second that you are one of those products on that shelf. You’re the little tiny green one sitting next to the big bad L’Oreal bottle. How do you compete with her?
You are the same product, almost, the same ingredients almost, slightly different pricing, but very close to what she is. Why then, are people picking him up, and not you? I’ll tell you why…..he has big marketing bucks behind him, and you’re the new untested, unknown guy.
She has had many, many birthdays in that isle, and you have not. You’re the new guy and what your company does to let customers know where and what you are will determine your success or demise on that shelf.
I have been placing products into retail for many years now and there is one thing that product developers do not have when they come to me with a product for retail, a marketing campaign. They think their job is done when I place the product for them. They are quite shocked when I ask them how they plan on supporting the item now. They think they can go on vacation because in 2 days they will be a millionaire.
There is nothing further from the truth than that my friend. Your job has just begun!
As a company, your products survival depends on how well you are able to let the customer know where they can purchase the product. You need to convince the customer why they want to purchase it and where to go and get it. Statistics show that people buy items after seeing them several, if not many, times previously. That should tell you that you must have a consistent message to the customer so they GO and ask the retailer for your product by name, like L’Oreal. Most retailers want to know how much of an advertising budget the item has, and what exposure it has had. Even more today, they want to make sure the product has a greater chance for success than others. Shelf space is prime real estate now!
Given there are thousands of products in an isle, if you do not have promotion dollars, and some marketing and PR noise, you will just blend and your chances for getting accepted diminish greatly.
How do you do this?
Ø - acknowledge that if you expect to go into retail, you cannot do it on a $300 marketing budget.
Ø - acknowledge that you are probable not the only person you should consult with regarding packaging a product for retail. Hire, barter, beg and plead for someone to help you with packaging. Sometimes, most times, it makes the difference in getting your product accepted.
Ø -you will have to spend time and money on a marketing campaign once your goods hit the shelf, no matter what. This may come in the way of retail advertising dollars or you have to get heard the best way you can- bootstrap marketing.
Ø -become, or hire, the best product marketer around.
Always DREAM BIG!
Kim
October 29th, 2008 at 12:45 pm
Great points Kim! Yes indeed, all those products are shouting, “Buy Me!” from the shelf. Problem is, the customer can’t hear them all. It is up to a SALESperson to narrow down the choices to the exact right one. Only then will you make money. “Build it and they will come,” only worked for Kevin Kostner and only in the movies.
October 29th, 2008 at 12:46 pm
Great points Kim! Yes indeed, all those products are shouting, “Buy Me!” from the shelf. Problem is, the customer can’t hear them all. It is up to a SALESperson to narrow down the choices to the exact right one. Only then will you make money. “Build it and they will come,” only worked for Kevin Costner and only in the movies.
October 29th, 2008 at 4:20 pm
Kim,
This article really hit home! You are absolutely right. Launching the product or even getting it into a few retailers is just the beginning. You have to have enough money to market the product (traditional advertising, internet marketing or for trade shows etc…)
I am just starting up, and in this phase right now. I put a lot of money into product development, production, website and a tradeshow. Now the REAL work begins, hitting the pavement, making calls, sending samples and introducing my product and my brand to the world! I can see how a company needs to have money to spend on sales and marketing to grow their company. It doesn’t happen overnight but I also agree with your philosophy of DREAM BIG and back it up with a lot of hard work!
Thanks for your advice!
October 29th, 2008 at 5:09 pm
Yes, your correct. The buy me syndrome is very prominent in retail, and usually overshadowed by the big guys marketing campaigns. However, there is a gleam of hope for the small, unproven products. If you have a good retail rep, he can, through his relationships with retail buyers, negotiate what is called PM (promotional money). The program encourages customer service reps to direct customers to a specific product or line, and they are compensated with a monetary compensation for each unit sold. Good incentive in my book!
It is a win-win for the employs, retailer and company. Of course, the retail will deduct that percentage from your invoice; however, you have a personal product rep pushing your item. Gotta Love That!
October 30th, 2008 at 1:34 pm
Great article!!!