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How Not to Achieve Product Placement In Big Box Retailers
by: Geoff Ficke
Yesterday I received a call from a prospective client with an interesting Do It Yourself home improvement product. The product is novel, priced right, well made, possesses unique features and consumer benefits and has absolutely zero direct competition. It should be a slam dunk to achieve distribution in any progressive big box retailer, shouldn't it? Uh, not really!
Years ago retail chain store groups and department stores reviewed products on an appointment basis, and most provided open buying hours one morning each week. Anyone could get in line and receive a hearing from a buyer, maybe there would be interest, or maybe the introductory meeting would be brief, but the innovator at least had a fighting chance. Today the opportunity to walk in the door of a major retailer, gain an appointment and make a proper presentation is becoming as rare as the dodo bird.
Blame it on the internet. Blame it on retail consolidation. Blame it on a lack of professionalism among today's merchant class. Blame it on scale. But realize that getting in front of decision makers with your innovative new product is a real uphill trek in today's frenetic retail client.
My prospective client with the interesting DIY product had approached the obvious retail targets of opportunity with gusto. By the time he contacted my consumer product marketing firm he was fairly well beaten down, confused and afraid. He simply could not get past the gate keepers and receive a fair hearing from the decision makers that make or break new product innovation.
The first thing to recognize if you are seeking a meeting with today's retail buyer is that it will be very difficult, not quite impossible but difficult, to obtain a traditional sales presentation with a category buyer or merchandise manager. You are competing with dozens, if not hundreds of competitors all seeking that meeting and hope of lucrative product placement on store shelves. There is only so much space on store shelves, in warehouses and in retail logistic links.
Your approach will be treated very much like any cold call. Consider when you receive an unsolicited telemarketing phone call at home. What is the typical response: joy or disdain? We all know the answer and so it is with a buyer receiving an unsolicited offer from an enthusiastic marketer excited about their unique product opportunity.
So how does the product innovator break through the filters and receive an opportunity to present their wares to decision makers? We utilize several different strategies that, in essence, back door our way into the buying suite.
The most professional and direct method is to participate in trade shows. Industry and category specific trade shows are attended by decision makers precisely because they are charged by their managements with discovering exciting new products. They are travelling on the stores expense account and are expected to return with something very new.
Trade show participation is an opportunity for innovators, startup companies and small businesses to look far larger than in reality they are. The opportunity to present new items next to established products and companies conveys a certain layer of solidity and appearance of prosperity. As retail buyers travel around the floor of a trader show it is likely that they will view your offering. Networking opportunities abound at trade shows. Business cards are exchanged. Hands are shaken. Introductions are made. Sales collateral is provided. The opportunity to directly demonstrate a product to a buyer in a highly charged environment is invaluable.
Once contact is made, and interest is expressed, it is almost always a given that the opportunity to schedule an appointment is offered. The ice has been broken. Your face, name and product have been impressed upon the buyer. He knows you, at least a bit. Take advantage of this personal contact, you are no longer a cold calling nuisance.
Another option for penetrating big box retail store shelves is what we call the "local option". I have written in detail about this strategy before. It works. District or regional managers of chain stores typically have the ability to write purchase orders at the local level for products of local origin. They actually love to discover these regional gems, in many cases to rub the corporate nose a bit.
We place product in a group of district stores and support with on counter point of purchase aids and a bit of local cable television. In addition, we create a publicity campaign targeting local media. Awareness begins to build. As re-orders are written, we extrapolate a national sales model, based on the district stores actual sell through performance. When these numbers are projected against the national store count we now have hard performance figures that are unassailable. The marketer is no longer presenting a product based on assumptions.
The local district or regional manager is always keen to tout this discovery to the national merchandisers. This endorsement of a product is invaluable. It is solid "Proof of Product Life". The door is now open at the corporate level to present your program and receive a proper hearing from the powers that be-the buyers.
Another tool that is not utilized often enough is the simplest: sales agents. The days of road salesmen calling on each little town and shop are long over. Retail consolidation has made it imperative that sales representatives build strong rapport with the big box retailers that make or break products. They live off commissions that only increase with volume. Salesmen are always looking for new products that burnish their relationship within buying offices.
The only way to grow your business is through successful sales efforts. Remember ABC = Always Be Closing! It is essential that you utilize every option and opportunity to put yourself and your product in front of buyers.
About the Author
Geoff Ficke has been a serial entrepreneur for almost 50 years. As a small boy, earning his spending money doing odd jobs in the neighborhood, he learned the value of selling himself, offering service and value for money. After putting himself through the University of Kentucky (B.A. Broadcast Journalism, 1969) and serving in the United States Marine Corp, Mr. Ficke commenced a career in the cosmetic industry. After rising to National Sales Manager for Vidal Sassoon Hair Care at age 28, he then launched a number of ventures, including Rubigo Cosmetics, Parfums Pierre Wulff Paris, Le Bain Couture and Fashion Fragrance. Geoff Ficke and his consulting firm, Duquesa Marketing, Inc. (www.duquesamarketing.com) has assisted businesses large and small, domestic and international, entrepreneurs, inventors and students in new product development, capital formation, licensing, marketing, sales and business plans and successful implementation of his customized strategies. He is a Senior Fellow at the Page Center for Entrepreneurial Studies, Business School, Miami University, Oxford, Ohio.
Self Defense Melbourne- Training For Facet Of Danger
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What is the best type of light bulb for small objects in a light box?
I have just built a light box for photographing small jewelry items. I was curious what the best light bulb is for taking jewelry pictures? I've heard "daylight" florescent bulbs are the best, but I don't know. I prefer something that can be found in any chain store like Walmart, Target, those kind of stores, but I can order if needed. Any info would be appreciated on light color, type of bulb, and where I can buy. The more detail the better. Thank you!
Thanks for the input. What is an MR bulb? Does it matter if the bulb is fluorescent or halogen?
A MR bulb with a 6400K color tone would be the best for jewelry. It will make it sparkle. That one you would have to purchase through a lighting showroom or on line. They are popular in jewelry stores, enhance the appearance of the products.
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