Retail Marketing in Europe and USA

805 views

Published on

Tips to work with the Big Retail, what you need to provide as a vendor. How to optimize your investment

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
805
On SlideShare
0
From Embeds
0
Number of Embeds
128
Actions
Shares
0
Downloads
17
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Retail Marketing in Europe and USA

  1. 1. Want to sell your product in Big Retail? What you need to know!
  2. 2. <ul><li>Introduction </li></ul><ul><li>Selling in through Retail partners is a challenge, difficult, expensive, time consuming and full of risk. </li></ul><ul><li>I’m trying to give a few tips over the most usual challenges involved dealing with the big retailers in the USA and Europe. </li></ul>
  3. 3. A few facts on retail sales <ul><li>Purchasing Decisions </li></ul><ul><li>Over 2/3 of the consumer-buying decisions are made at the store, with customers often switching brands. </li></ul><ul><li>90% of those decisions are influenced by the sales staff </li></ul><ul><li>Price is only responsible for 40% of the final purchasing decision </li></ul><ul><li>In-Store stock, pricing and easy to use are the most important deciding factors. </li></ul><ul><li>Retailer motivation </li></ul><ul><li>Marketing funds </li></ul><ul><li>Training to sales staff </li></ul><ul><li>Special promotions </li></ul><ul><li>High product rotation </li></ul><ul><li>Sufficient stock volume </li></ul><ul><li>Easy return policy </li></ul><ul><li>Working with preferred distributors </li></ul>
  4. 4. Sales staff influence <ul><li>Recommendation of a knowledgeable salesperson is the #1 in-store purchase influencer and that salespeople “sell what they know” the best </li></ul><ul><li>Effectively educating these key individuals on your products is essential </li></ul><ul><li>Some retailers allow in-store training of the sales staff by the vendors or distributors, others prefer organized seminars on selected dates </li></ul><ul><li>It is essential to convince the sales staff of the quality of your product, and to ensure the return ratio is low, otherwise they get frustrated </li></ul>
  5. 5. Location, location, location <ul><li>What you pay in retail is for traffic, so you need to be found </li></ul><ul><li>Product visibility is one of the most important factors </li></ul><ul><li>If you sell a high volume small product it needs to stand out from the rest. You need to have more stock visible to the customer. </li></ul><ul><li>For larger items you need at least one unit on display. </li></ul>
  6. 6. What the retailer wants? <ul><li>Marketing funds, lots of them…..$$$$$$ </li></ul><ul><li>Participation in all special promotions, catalogs, sales, etc.. </li></ul><ul><li>Free stock and fast rotation </li></ul><ul><li>Very long payment terms (2 nd most important business is cash flow) </li></ul><ul><li>Exclusive promotions with them </li></ul><ul><li>Free advertisement from the vendor </li></ul><ul><li>Lowest Price Guarantee (paid by the vendor) </li></ul><ul><li>Fast return and credit </li></ul><ul><li>Funded heads (sales people you pay to be there) </li></ul>
  7. 7. What you need to provide <ul><li>Stock rotation </li></ul><ul><li>Price Protection </li></ul><ul><li>Sales people training </li></ul><ul><li>Marketing material (Displays, interactive presentations, etc.) </li></ul><ul><li>Fast access to stock (logistics) </li></ul><ul><li>Local support </li></ul>
  8. 8. The importance of the distributor <ul><li>A distributor can take up to 90% of the pain working with retailers </li></ul><ul><li>The conditions for payment, credit, stock rotation, price protection, logistics, etc. can be negotiated with the distributor and they will transfer them to the retailer. </li></ul><ul><li>Some distributors specialize in working with eTailers and act as their logistic arm. </li></ul><ul><li>For specific marketing programs it is important to work directly with the retail partner </li></ul>
  9. 9. A few Ideas <ul><li>Invest in Store training and promotion, it will give much more ROI than catalogs, email. Remember that most purchasing decisions are made at the store. </li></ul><ul><li>Work with your distributors to standardize the payment, rotation and stock policies. </li></ul><ul><li>Get a distributor preferred by the main retailers with strong financial situation </li></ul><ul><li>Don’t overstock the retailer. They really hate that, but also you need to have product available to restock them as needed </li></ul><ul><li>Work the sales people on the floor. They are your best chance to move your product fast. </li></ul>
  10. 10. If you want to know more, let me help! Email me at [email_address] Or call +1-814-317-6155

×