Retailers Give Preference to In-store Brands Through Retail Merchandising

Private labels have been immersed in a battle to compete with store brands in the consumer packaged goods space for many different reasons. This represents a huge challenge to B and C level brands. 

Store brands are more competitive than ever, offering lower prices on the backs of the brands that they compete with. In addition to lower pricing, better packaging, marketing campaigns and preferential retail merchandising has made is more difficult and more expensive than ever before to compete.

National brands with deep pockets are definitely better positioned to compete. Smaller B and C brands are in a vulnerable position and in a virtual war zone because they not only find themselves having to compete with the store brands but also with the national brands.

This is a real catch 22 because in order to sell product, private brands must maintain strong relationships with the very stores that have brands that they are competing with, and in some cases, even white label their products to. Without the retailers, brands don’t have a place to sell their products. Without strong sales, brands face having their products de-prioritized and even de-listed.

If you represent a brand, you know that you pay big bucks to have your products listed with retailers. Retailers who sell their own brands give preference to the retail merchandising of their brands which means that private brands must make a more assertive effort to control their retail merchandising at the retail level.

When a retailer gives preferential retail merchandising to their brands, what does this mean for you?

It means that they see better product placement and more effort is made to see that that product is properly priced, in stock and on the shelves.

The only way B and C brands can compete in this environment is to make more of an investment in the customer’s experience through increasing their investment in retailmerchandising at the point of purchase to ensure customer retention and customer loyalty.

So how can you do this? By knowing where you stand at the retail level at all times and having eyes on the ground at the retailers. When customers are in-store the three most common reasons that they shift brand loyalty are when products are moved, when products are not properly priced and when products are not on the shelves.

If you represent a smaller private brand you can work with retail merchandising companies to come up with a plan to ensure that your product is where you expect it to be, is not in stock but not on the shelf, is not out of stock or is not improperly priced. This could include scheduled visits by the retail merchandising company to ensure that your in-store presence is in order. Retail merchandising companies can be provided with your product so if it is out of stock, they can place more product in-store. If product is sold out on the shelf, they can go into the stockroom and place more product on the shelf. If your product has been moved, you will be made aware of it and they can even correct incorrect pricing.

These small changes can make an incredible difference in your sales. When customers visit the retailer, your product will consistently be available to them. When other brands see their products sell out now you are in a position to shift the customers’ loyalty to you because you not only offer great product but your brand is reliable.

For more information about how you can compete with store brands or for more information about our retail merchandising solutions please contact Storesupport at 1(877) 421-5081 or visit www.storesupport.ca.

Ipsos Survey Reveals That Store Brands Are Surpassing National Private Brands Through Improved Brand Positioning

It’s no secret that private brands and store brands continue to be in staunch competition at the retail level and that the customers’ experiences at the point of sale remain critical. 

New statistics released by an Ipsos Marketing survey that has been conducted annually over the past three years, revealed that private brands will need to step up their game if they want to avoid being overtaken by in-store brands. The Ipsos survey asked consumers to compare store brands to national brands in many different areas.  The survey revealed that: 

·         Since 2009, the majority of consumers perceived store brands to be equivalent and in many cases better than national brands.

·         From 2009 to 2010, store brands slipped in all areas including value, convenience and meeting the needs of the customer.

·         From 2010 to 2011, store brands gained ground in consumers’ minds with regard to quality, innovativeness, uniqueness and packaging. 

“It is really not that surprising that consumer perceptions toward store brand quality, innovativeness, uniqueness and packaging have improved. Retailers are investing more heavily into the development and merchandising of their store brands,” summarized Gill Aitchison, President, Ipsos Marketing, Global Shopper & Retail Research.

 

Customer loyalty and retention is what will make or break the success of any brand. One vital component of effective merchandising is ensuring the best customer experience. Filling gaps at the retail level to increase customer retention of those who are already loyal to your brand should be a top priority. The most common reasons a loyal customer will shift their loyalty from one brand to another brand are: price, quality of product and product accessibility.

“Our data indicates that store brands still pose a formidable threat to national brands – perhaps now more than ever,” Aitchison says.

Outside of offering a quality product and unique packaging, if national brands want to gain ground on the very competitive store brands they will have to ensure that when the customer is shopping, that their products are easy to find, in a consistent place, with prices tagged, in-stock and on the shelves.

In an extremely competitive retail environment, when a product is out of stock or has been moved, customers often don’t have the time or patience and will simply try the next, most comparable brand available. This is dangerous because if they like the new product, their loyalty could shift permanently. This why merchandising is key for private label brands, which includes ensuring that sufficient resources are in place to make sure that inaction on the part of the retailer is not resulting in a shift in customer loyalty because products are not accessible.

Many private brands do not have the same level of in-store merchandising support that the store brands do. This is why it is so important for private brands to invest in merchandising support services or risk being over taken by the less expensive and more competitive store brands.

This trend does not seem to be subsiding, so it is crucial that private label brands reinforce their point of differential in order to win over the shopper and influence their buying habits and regain the position as far as strongest sales.

Aitchison concluded by saying that “National brands must now battle store brands on all fronts – it’s not just a value game anymore. National brands must vehemently protect their image for providing higher-quality and more innovative products than store brands. With retailers focusing more on the product development and marketing of store brands, national brands are going to need to work even harder to differentiate their brands with breakthrough innovations, more standout packaging and true product superiority. Bringing in the voice of the consumer, digging for deeper consumer insights, and leveraging leading-edge marketing techniques will be instrumental to winning over the shopper at the critical moment of point of purchase in order to win the ongoing battle against store brands”.

If you would like information about cutting edge merchandising solutions that could drive your brand at retail ensuring the best customer experience please contact Storesupport at 1 (877) 421-5081 or visit www.storesupport.ca. To read the full press release, us this link http://www.ipsos-na.com/news-polls/pressrelease.aspx?id=5612 .

White Paper Reveals How Mobile and Social Media Have Major Influence Over Your Brand’s Customer Retention and Brand Reputation Management

Mobile technology and social media have revolutionized the way that we share, communicate and influence one another. With the rise of mobile and social media and the ‘like’ phenomenon, mobile and social media has led to a significant increase in how your customers’ and prospects’ buying habits are influenced. This can be positive for brands when they are doing everything possible to ensure a positive customer experience and at the same time can be devastating to brands that do not.

With over 65% of people owning either a tablet or a smartphone, social networking is no longer static. Rather, since these devices can go virtually anywhere, social media is now much more fast-paced and on the move. Recognizing this trend and its impacts is critical if you want to maintain your brand’s customer retention and reputation.

A recent survey conducted by Ipsos Reid uncovered some important statistics that demonstrate just how important mobile and social media is as far as brand recognition and social influence:

-          49% of Canadians surveyed said that they were either strongly influenced or somewhat influenced by what members of their social network had to say about brand or product recommendations.

-          41% stated that if someone in their social network “liked” a product or a brand they were more likely to try it than if it was not.

-          Almost half of those surveyed said that they “liked” at least one brand or product, with the younger generations (18-34) following an average of 5.

 

Taking into consideration just how crucial tapping into mobile and social media resources is, it is important to remember that just because someone likes a product or brand initially does not mean that they will continue to do so. The same survey found that almost 30% of respondents stated that they have ‘unliked’ or stopped following a brand if it no longer held their interest of if their loyalties switched.

Clearly these stats illustrate just how important it is to take advantage of the opportunities that present themselves through mobile and social media. Knowing all of this, how can you make sure that your followers or customers are ‘liking’ your product or brand, and how you can you maintain this following?

Ensuring that customers have a good customer experience at the point of purchase is vital. As easy as it is for a customer to “like” your brand, it is just as easy for customers to take to their social media when they have a negative experience. Consumers who love and rely on your brand as an important component of their shopping list can be extremely inconvenienced when they attend retailers who have moved your product or allowed it to go out of stock. It becomes frustrating because now they have two choices, be inconvenienced seeking out your brand or shift their loyalty to a brand that is more readily available.

As recently as last week we had a consumer post on one of our LinkedIn Groups about an bad experience they had at a retailer where changes to a floor plan and out of stock products led them to post on their Facebook about their experience, influencing their social networks’ opinion of the brand and retailer and lighting up a firestorm of controversy about this issue. The customer’s experience at the point of purchase can make or break a brand and social media and mobile create a platform for you not only to lose their business but also that of those in their social network.

Investing in merchandising and working with suppliers who can improve your customers’ experience at the point of purchase stops you from being impacted by changes retailers make in-store and a lack of organization at the retail level.

Ignoring the importance of social influence can be detrimental to your bottom line. For more information about the rise of mobile and social media or about our merchandising services please contact Storesupport at 1(877) 421-5081 or visit www.storesupport.ca.

Holiday Experiential Marketing Campaigns Conducted by Brands Increase Sales Substantially

As a brand, you know that the holidays often represent a crucial period of potential growth for your brand. The stores are filled with those shoppers looking for the best products and the best deals. So how can you attract them to your brand? Experiential marketing campaigns provide a unique chance to attract and build connections with customers – both loyal and prospective. 

Leveraging experiential marketing enables you to undergo meaningful campaigns that engage the customer through experience – creating an emotional connection to your brand. Interacting with customers using sensory experience allows you to create important relationships based on a direct experience with your product and to begin to build that brand loyalty that is crucial to your brand’s success. Common forms of experiential marketing campaigns include product demonstrations and product sampling, and rather than just telling people about your product, experiential marketing campaigns allow them to experience the benefits for themselves. 

The stats about experiential marketing are compelling. A study done by the Event Marketing Institute on experiential marketing campaigns found that 58% of consumers said that they purchased the product or brand after an experiential marketing event that let them experience the product for themselves, while 86% revealed that they became a regular customer afterwards. Furthermore, 71% of those surveyed said that they felt a stronger connection with the brand after the campaign, leading to further brand loyalty. 

We all know that the holidays are a busy time. Having a plan in place before they arrive is prudent, as during the holiday season things can become very hectic. Working with a merchandising company to plan and have the resources in place to launch a holiday campaign will ensure that you take maximum advantage of the opportunity that the holidays represent.

Take this study done by a New York marketing firm as an example of the potential that exists during the holiday season. Focusing on the effectiveness of experiential marketing campaigns, the firm broke down its engagement levels with regard to time, finding that on average, customers interacted with brand ambassadors for an average of 40 seconds. During these 40 second engagements with 120 000 people, brand ambassadors were able to create an emotional connection to the brand that was equal to approximately 1.1 million 15-second television commercials. Taking into consideration the power of a television commercial during the holiday season, it is imperative to recognize how important customer engagement is, especially at the point of retail.

Looking at case studies of work done by experienced marketing company Storesupport demonstrate just how effective experiential marketing campaigns can be:

Case study #1: A well-known juice brand wanted to complete an experientialmarketing campaign during the busy holiday season to gain brand recognition and engage customers to increase customer loyalty. Storesupport was called in to assist, providing consultants who ensured effective product placement and a positive customer experience. Within four weeks, the brand achieved a 96% distribution rate within the stores thanks to the power of the experiential marketing campaign.

Case study #2: A healthy cooking oil new to the market was looking for increased brand exposure and customer loyalty. Storesupport was brought in to conduct experiential marketing which included in-store taste testing. Providing an experienced, professional team of brand ambassadors, Storesupport helped the brand increase their sales in these markets substantially and build brand exposure and clients for their brand.

These represent just two of the many success stories that illustrate just how effective an experiential marketing campaign can be. Taking advantage of the increased traffic visible during the holiday season, an efficient experiential marketing campaign can help to get your name out there and increase customer loyalty and brand recognition by letting customers try your product for themselves.

For more information about experiential marketing campaigns and their benefits, please contact Storesupport at 877-421-5081 or visit www.storesupport.ca.

With the Holidays Right Around the Corner, A Holiday Staffing Plan is More Important than Ever

The holidays are right around the corner and retailers have more planning to do this year than in many years in the recent past. This is because the economy continues to improve and back to school shopping spending this past month is a good indicator that this holiday season is going to be a busy one. 

Retail Wire recently reported that the U.S. Department of Commerce reported that in August of 2012 retail sales in the U.S. were up 4.7% and July 2012 sales were up 4.4% over the 2011 retail sales numbers. This is a very positive indicator for retailers across North America.

In fact, Retail Wire went on to cite a study by Hay Group where 75% of retailers are estimating an increase in sales this holiday season and have a plan to handle increase in business. 36% plan to hire additional seasonal staff, which is an increase of 10% over 2011.

Ecommerce sites like Amazon make it so easy for customers to do their holiday shopping online so if bricks and mortar stores want to have a bigger slice of the holiday shopping pie, the customer’s in-store experience is more important now than ever.

The key to having sufficient staff over the holiday season is to have a plan and resources in place. Having too little staff will cause you to lose sales and customers. Having too many employees will cause you to have high overhead cutting into your revenue.

The holiday season and holiday planning has always presented challenges to retailers with respect to holiday staffing,  in our experience, because retailers must plan based on what they anticipate will happen. Holiday staff will be needed to ensure that: 

1.       Distribution and merchandising is in order and that products are in stock and on the shelf.

2.       There are sufficient cashiers in-store to keep line-ups under control.

3.       There are resources to ensure that holiday displays, décor and experiential marketing campaigns go off without a hitch.

This represents a huge cost to retailers not only in the cost of labour but also in the cost to hire and train seasonal staff. A very common mistake we see retailers make is underestimating holiday traffic and then trying to get their holiday staffing in order at the last minute.

Some retailers will turn to temp-employment agencies to fill the gap, however the challenge there is that these employees’ experiences will vary and many end up requiring significant training which many retailers do not have the time or infrastructure to accommodate during the holiday season.

Merchandising companies offer better holiday staffing solutions to retailers because merchandising companies will generally have a workforce of their own highly skilled retail employees. When a retailer is planning for the holiday season, they can work with a merchandising company to create a holiday staffing plan and then receive the staffing resources to implement it. Because employees of merchandising companies offer already skilled retail staff, this greatly minimizes the burden to retailers as the seasonal holiday staff provided by the merchandising company will require less training. Also, holiday staff provided by merchandising companies have more of a sense of ownership in you being successful. Finally, as you move into the holiday season and start to see what your sales will be, a merchandising company can easily increase or decrease the volume of staff as needed.

It is already October, so if you haven’t started your planning for holiday staffing, now is the time - as waiting could impact your sales potential during this crucial time.

For more information about holiday staffing planning or if you need assistance with your planning or staff over the holiday season, please contact Storesupport at 905-847-6513 or visit www.storesupport.ca.

Merchandising Companies are the Resource for Staffing Up Over the Holidays

As a retailer, you are no doubt aware of the strains created by the holiday season. The surplus traffic that is inevitable can be daunting, and often the only solution is to increase your staff on a temporary basis to meet the needs of customers. But what impact does this have on your customer service standards, retail merchandising and your bottom line? Does hiring new staff for the holiday season actually create higher customer satisfaction, and does it mean a better productivity rate?

In order to keep customer satisfaction and customer loyalty up during the holidays, maintaining a sufficient staff is necessary – but there are 2 ways to go about doing this. Both need to be carefully considered in order to determine which option best meets your needs as far as customer service and retail merchandising are concerned.

The seemingly effective go-to option of hiring seasonal staff is one of your choices. But what are the actual costs and benefits of this? More than likely the negatives far outweigh the positives.

Recruitment costs – since the first step to hiring a seasonal employee is recruitment, make sure you factor in all of the costs for recruitment. How would you advertise the position? How many applicants will you interview, and who will do the interviewing? How much time will be spent on background and reference checks? These things all take time and money – things that could be spent more productively elsewhere.

Training – so every employee needs to be trained. How much time is spent – both by the new hire and the employee doing the training – doing this? And how long does it take. Furthermore, according to a study done by Investopedia, if you are hiring just for the holiday season, chances are that employee will only ever reach about 25% of their potential before the season is over. It isn’t until around the 5^th week that an employee reaches even 50%, and it takes on average 13 weeks to reach even a 75% productivity rate. Knowing this, it is undeniable that training often costs more than the benefits of having the employee there.

High turnover/reliability – how can you ensure that that employee you have hired to work for only a few weeks in interested in doing the best job for you? Often you cannot. More often than not, as a seasonal employee, your new staff member is more interested in quick cash than long-term career goals. Relying on this may leave you in a lurch or lead to decreased morale or a high turnover rate (which could then result in further recruitment and training costs…).

So what other options are there for staffing up over the holidays while still maintaining a high degree of customer service and retail merchandising standards during this busy time? Relying on a third party partner that specializes in retail and provides staffing resources to meet your needs is often a much better choice. The right partner will be able to provide highly trained, experienced retail staff even on short notice. Since these staff members are employees of the third party partner, they have already been checked, hired, and trained, which means you can avoid the hassle. Since they are permanently employed by the third party partner, you know that they are experienced at retail, reliable and will work with your existing staff.  Partnering with this type of organization will also remove the burden of training, turnover and scheduling so that you can focus on what’s most important, your customers.

Hiring staff for the holidays doesn’t have to be a headache – working with a third party retail partner that can provide you with the resources required will allow you to overcome the stress while maintaining a strong bottom line.

For more information about how to best staff up for the holiday season and how to keep customer service and retail merchandising in check, please contact Storesupport at 877-421-5081 or visit www.storesupport.ca. We are your third party retail resource for this holiday season. 

Getting Control of your Product Distribution and Retail Merchandising Over the Holiday Season

We all know how busy the holidays get at retail, and we all know how detrimental maintaining good customer service best practices are. For a brand at retail, keeping the customer happy is crucial, especially with regard to product distribution and retail merchandising. 

We have all heard those retail merchandising holiday horror stories that illustrate just how “fun” holiday shopping can be – but if you are a brand located in a retail environment, you know that keeping control of your product distribution and retail merchandising over the holiday season is critical for your bottom line. 

For example, it is undeniable that the holiday season often results in empty shelves or un-stocked product. So how can you combat this? Working with a merchandising company can help you deal with your holiday product distribution woes. By providing access to staff that can navigate the retail space and ensure your product is located on the shelf and accessible to clients helps to alleviate the stress of dealing with holiday hardships. Regular run-throughs ensure that retailers are not letting your product distribution fall to the wayside during the holiday rush, meaning your bottom line does not suffer from distribution issues.

Also important is making sure that there IS stock in the back. If a customer comes in during the holiday season looking for your brand only to find it out of stock, they often have no choice but to switch brands. Working with a merchandising company can help eliminate this by sending consultants to retail to ensure product distribution is up to date and that sufficient product exists in the storeroom.

Yet another important part of product distribution and retail merchandising during the holiday season – pricing. With so many sales taking place over the holidays, sometimes your brand pricing may be lost in the shuffle. If a customer comes in looking for the best deal and your product has not be marked down as you expected, this could result in lost sales or lost customer loyalty. Working with a merchandising company eliminates this by sending out consultants to check pricing and product placement. Ensuring that prices are marked down may not be a retailer’s top priority, but it is yours, and thus it becomes the top priority for your merchandising company.

Another issue that arises during the holidays to negatively impact product distribution and retail merchandising is having too few staff on hand to handle customers’ needs. We all know how difficult it can be to find help at retail during the busy holiday season, but think about the impact of this if you are a brand at retail. Enlisting the services of an experienced merchandising company that can provide the staffing necessary to keep up the customer experience will allow you to ensure that your brand is receiving the recognition it needs and that your loyal customers remain happy.

Even during the holidays – or especially during them – it is critical to keep customers happy to maintain customer loyalty and brand recognition. It does not take much for a customer to switch brands if they feel ‘wronged’ by a brand that they were previously loyal to.

For more information about product distribution and retail merchandising over the holiday season, or at any point during the year, please contact Storesupport at 1 (877) 421-5081 or visit www.storesupport.ca.