What to Do in the Event of an Allergy Alert Product Recall

Product recalls, or more specifically allergy alert product recalls, are an issue that brands and retailers deal with on a regular basis. If a product is found to contain something that is not listed on the label, or if the label does not contain an allergy alert, steps must be taken to remedy the problem. Most product recall decisions are made by CFIA and Health Canada, and brands are expected to comply immediately. Whatever the level (Class I, II, or III recalls), the way that you handle a product recall is vital.

There are several different types of product recalls:

-        Voluntary recall: Most product recalls in Canada are voluntary, meaning that they are initiated and carried out by the company whose product is being recalled. The Canadian Food Inspection Agency monitors the recall to ensure that the correct process is followed.

-        Mandatory recall: Although most product recalls are voluntary, if a company refuses to comply with a recall request, the Minister of Agriculture and Agri-Food will step in and order a mandatory recall, especially for those foods that pose a health risk.

-        Allergy alert: This recall is issued when an undeclared item is contained in a product, and is withdrawn once that item is listed on the label.

-        Health hazard: These are issued when something that could potentially cause harm (ex. Salmonella) is found in a product.

Often these will be listed together (ex. allergy alert: voluntary recall).

In the event of an allergy alert product recall the brand has to:

·         Remove the product from the shelf

·         Ship it all back to the warehouse

·         Re-label the packaging

·         Re-ship the product back to the store

This process represents a huge cost to the brand, not only because of the money to correct the mistake and the shipping costs, but also with regard to the sales lost while the product is not on the shelf. This is why time is of the essence when you are dealing with an allergy alert product recall – or any type of product recall!

These costs are severely reduced when a merchandising company takes over – since they will just correct the labels in store, thereby saving you time and money. This rapid response approach also helps to mitigate the public relations effects, since your product is not actually being taken from the shelves.

Sometimes product recalls are unavoidable, and in these cases they need to be handled correctly. A merchandising company that offers emergency response services to deal with product recalls can help take the pressure off and get things running as they should be.

If you don’t have a system in place to deal with product recalls, please contact Storesupport to find out more by calling 1-877-421-5081 or visit www.storesupport.ca.  

 

The Changing Face of Retail Merchandising in Canada

No matter what you sell, if you operate in the CPG industry you know how important it is to keep up with changing market trends. Generational gaps as far as spending behaviours have likely not escaped your notice over the last few years – but are you taking advantage of all of the opportunities that these generational differences offer? If you don’t have a retail merchandising plan that considers them, probably not.

Baby boomers have long been the largest group being catered to – largely because they represent the largest group of loyal customers. But the old adage ‘if it’s not broken, don’t fix it’ will no longer mean profits in the long run. Ignoring those other generational groups which represent the buyers of the future is not going to do you any favours. Casting aside the fact that in the next 10-15 years they will represent the largest group of consumers, millennials need to be catered to in a very different way than baby boomers.

Now, now, now. Patience is often touted as a key virtue which millennials fail to exhibit. If a product is not where it should be, or if it is not in stock, most millennials are just going to turn to the next best thing – and if they like that product, what is to stop them from purchasing it next time?

Price vs. quality. Millennials tend to be more price sensitive than baby boomers, and so making sure that products are labelled correctly is also important. If a product is priced incorrectly, the cheaper product might be what makes its way into the shopping cart.

So how can you overcome these all too common challenges? Consider working with a retail merchandising company that can provide a suite of services which will help to ensure that your product is where it should be, in stock, and being marketed the way that you want.

Planogram compliance: You have spent the time and resources researching which planogram will be the most effective, so enlisting the services of a retail merchandising company allows you to ensure your expectations are being met.

Quality assurance audits: Are products priced correctly? As mentioned, price sometimes exceeds quality on the wanted list, so making sure that your product is not being overshadowed is crucial.
Mystery shopping: Are employees stocking shelves in a timely manner? Are they able to provide the correct information about your products? A mystery shopper can answer these questions and give you the ability to fix any issues.

Retail merchandising in Canada represents a vital tool by which to attract both those millennials and baby boomers with different marketing tastes. Don’t cast one aside in favour of the other.

For more information about the benefits of retail merchandising in Canada, please contact Storesupport by calling 1-877-421-5081 or visit www.storesupport.ca. 

Target Baby Boomers 2.0 – How to Increase Customer Retention and Brand Loyalty in This Market Space

There has been a lot of buzz in the news lately with regard to the habits of millennials when compared to baby boomers. It is undeniable that generational trends dictate market trends, and so keeping up with change is critical. That being said, it is important not to alienate one generational group in exchange for another, and it is crucial to cater to all groups while recognizing that baby boomers continue to represent a large segment of shoppers who regularly visit bricks and mortar stores and continue to exhibit a higher level of brand loyalty when compared to younger generations. 

By marketing to the baby boom generation properly, customer retention and brand loyalty can lead to increased profitability. But how?

Baby boomers are apt to exhibit brand loyalty – you just have to hold onto it. Baby boomers remain the most loyal generation, especially when it comes to CPG brands. A recent marketing study done by Jefferies and Alix Partners found that 61% of baby boomers said that brands were important in their purchasing decisions for groceries (compared to only 47% for millennials). Those products that baby boomers have continued to favour over the years are not disregarded easily, making customer retention and brand loyalty much easier with this generation.

At the same time, it is important to acknowledge that baby boomers are more likely to have higher expectations, so things like making sure that product is on the shelf, in the correct place, or that employees can provide assistance when necessary are all key factors in customer retention. A merchandising company can help with this by providing the support necessary to ensure that retailers conform to your expectations.

Furthermore, the study found that millennials are far more price sensitive than boomers, and less likely to buy the more expensive brands. 62% of millennial participants responded that they focused more on lower prices than brands, compared to 46% of baby boomers. Clearly those with the buying power are spending the money.

That doesn’t mean though that product demonstrations or promotions are not well received – they are. Baby boomers are willing to try a new product if the quality is there, and although it takes far more to get them to switch, these tactics can increase shifts in brand loyalty.  They also represent a great customer retention opportunity when providing that added incentive to get them to continue purchasing your products.

The study’s results indicate just how important it is to continue marketing to baby boomers in order to retain their brand loyalty. Make sure that your merchandising plan attempts to reach all viable customers. A merchandising company might be just what you need to ensure that this plan considers all markets. Rely on a company that has the expertise necessary to meet your needs no matter what your target demographic is.

For more information about customer retention and brand loyalty among the baby boom generation, or to find out how our merchandising services can contribute to increasing these, please contact Storesupport by calling 1-877-421-5081 or visit www.storesupport.ca

 

How to Ramp Up Brand Loyalty in a Turbulent Economy

Economists in Canada have been talking about how the Canadian economy has been rebounding for months now, especially with the increasing employment rate. More people are back to work, and things appear to be stabilizing. That being said, deputy chief economist at CIBC World Markets Benjamin Tal recently reported on the status of the economy, looking at consumer spending, and his predictions are not nearly as promising, especially for CPG brands. 

With respect to consumer spending, Tal remarked that “Canadian consumers are exhausted.” Worry over housing prices and debt, coupled with the knowledge that economically things are still quite tenuous, has led to ‘consumer fatigue’, and Canadians are not spending the way that they used to be. Tal states that the Canadian debt load has a lot to do with this ‘consumer fatigue’.  The debt to income ratio for Canadians has risen from around 140 to 165 percent, and as a result the decision to purchase is now heavily influenced by a number of new factors.  

This trend is especially challenging for top tier brands whose products may be more expensive. If a customer is looking for price first, then CPG brands who sell bigger ticket products must do even more to entice new customers and ramp up brand loyalty with respect to existing customers.

These trends do represent an important opportunity for brands to be one step ahead of economic forecasts and place an emphasis on strengthening brand loyalty. Ever since the recession hit in 2008, consumers across the country have been paying close attention to promotions, and switching to different products that may offer the same or different benefits. The trend still seems to be price over quality – or a balance between the two.

Not sure how to make these trends work for you? Consider experiential marketing. If a consumer has the ability to try a product that may not be their usual brand, and find that they like it, the decision to purchase your brand rather than a competitor’s is an easy one. Furthermore, if the product demonstration includes a promotional coupon, the chances of shifting brand loyalty are further increased.

The fact though that cost is important does not mean that consumers who are concerned about cost necessarily want to skimp on quality. If your brand is great, consumers will continue to purchase even if your price is a little higher. With experiential marketing you get the chance to show those customers why it was that they either chose your product to begin with, or arguably more important, why they should switch to your product and buy it from now on.

For more information about how to leverage experiential marketing to increase brand loyalty, or to find out about any of our merchandising services, please contact Storesupport by calling 1-877-421-5081 or visit www.storesupport.ca.  

Is Canadian Grocery Chain’s Moderate Growth a Result of a Declining Customer Experience?

Canada’s largest grocer recently released its fourth quarter numbers for 2012. The company reported a profit drop of 17.8 percent over this period, and stated that they are considering consolidating some of the company’s many well-known banners. So what accounts for this significant drop in profit? Is a declining customer experience to blame? And if this is the case, what can other retailers learn from it? 

In the consumer packaged goods arena, the customer experience plays a crucial role in acquiring and retaining the consumer, and if retailers do not take the customer experience seriously this will have a considerable impact to both the retail brand’s bottom line as well as the brands who list their products there.

Many of this company’s banners are known for their appealing store layout – but when it comes down to it, that may draw consumers in but does it keep them coming back? Not necessarily. Once the customer is in the retail environment continuing a positive customer experience is critical. Long line ups, poor customer service, lack of staffing and substandard retail merchandising can all lead customers away from your store, regardless of how great the store looks aesthetically or how it is laid out.  If product is not in stock, or not located in the appropriate place, customers will quickly realize that an appealing store layout accounts for little when it comes to their needs.

Employees play a major role in overall customer experience. Being knowledgeable about the products, their location in-store, and their ability to provide assistance when necessary all lead to higher levels of customer satisfaction. But what about those employees who see their jobs as little more than a stepping stone? Or what impact does protective unionization have on the level of service provided? If the incentive to perform is not there and the retailer is not creating an air of accountability the results can be damaging. These things all need to be managed correctly to ensure that the customer experience is not declining.

We recently had a customer tell us that they attended a store on a Sunday (a prime shopping day) and that there were significant line ups, only four check-outs open, and when they approached a manager to complain they were told “what do you want me to do, our employees are union”? That is not good customer service and it is not a good reflection of the brand. The individual who reported this to us will never return and so not only is the retail brand impacted but also the CPG brands who list their products there.

CPG brands looking to improve or build on their existing customer service levels need to recognize the importance of retail merchandising. When your product is listed at a retailer you still do have some control. Having a plan in place to tackle things and put your own feet on the ground. Retail merchandising companies proficient in these types of issues can help – establishing a plan for effective merchandising that will get real results. They can also have their merchandisers go into retailers on your behalf to ensure that everything is working the way that it should be and alert you to challenges at the retail level that need to be addressed.

The Canadian grocery chain has listed several different tactics that may be used in the coming months in an attempt to regain their profit lead, but if declining customer experience has played a part in the declining profits, improving it will be essential. The same rings true for any retailer, and in order to keep sales up, the customer needs to feel satisfied with their overall experience.

 

For more information about how merchandising services can improve customer experience, please contact Storesupport by calling 1-877-421-5081 or visit www.storesupport.ca.  

Managing Store Openings and Closures

Target has been in the news a lot lately with regard to their new store openings. These ventures have caused a stir among both big box stores and smaller retailers with regard to the impact that Target will have on their sales. But what if you are a retailer planning a new store opening? Just because retail giants like Target get massive amounts of attention and conduct store openings on a massive scale does not mean that your store opening won’t be as effective. 

Managing store openings can be a huge undertaking, and as such require a high degree of effort. Especially for smaller retailers or those moving away from the big box models, managing store openings effectively means organization and administration, among a variety of other things.

A merchandising company experienced with managing store openings is a great resource to have on your side. The support that can come with this relationship can mean huge gains when starting up. What kind of support are we talking about? There are a number of things that can be handled externally, all in consultation with you and managed according to your own unique expectations.

People-support. Whether you have not hired a staff, or if you need extra staff to assist with your store opening, a merchandising company can provide you with trained, experienced, professional staff members on a short term basis. This way you don’t have to worry about employee turn around or having to hire on short notice. Having a strong team right out of the gate helps to ensure great customer service and build a strong reputation.

A great way to attract attention during a store opening is with experiential marketing. Things like product demonstrations or taste tests, especially when coupled with promotions, are great ways to engage customers. Drawing customers in can make all the difference when managing store openings and a merchandising company well-versed in the experiential marketing field can ensure that your campaign is handled correctly and effectively.

Managing a store closing can also be a major enterprise. If you are planning on closing your doors, whatever the reason, working with a merchandising company can help the process go far more smoothly.

Rome wasn’t built in a day – and managing store openings is not a process that happens in a day either. Don’t try and do it on your own. Whether you are planning on an opening or a closing, consider working with a merchandising company to relieve stress and help you carry out the endeavour without a hitch.

For more information about managing store openings or closings, please contact Storesupport by calling 1-877-421-5081 or visit www.storesupport.ca.

How Canadian Retailers Can Leverage Retail Merchandising to Stay Competitive Against Target

The U.S. has always been a tempting alternative for Canadian shoppers willing to head over the border to find the best deals. Big box stores located south of us have lured Canadian consumers for years, but with one major American retailer moving north, the question remains: How will Canadian retailers compete? As Target prepares to open more stores across Canada in the coming months, retailers and brands will need to step up their game if they want to stay competitive. 

Target has said that it will open 24 new stores by the end of April, many of them being former Zellers locations which have been completely renovated. A significant number of additional locations will open throughout the rest of 2013. 

So how can Canadian retailers compete against the American powerhouse? Excellent retail merchandising is a start and that can be leveraged to provide an excellent customer experience leading to increased customer retention. 

Those brands that are not listed at Target are in a precarious position, but there are measures that can be taken to keep sales up in other stores where you do have retail coverage. A key factor in vying for customer loyalty remains firmly rooted in customer experience. Consumers want to have a good experience when shopping, and things like finding a product, in stock, without issue is important. If product is not shelved properly or out of stock, customer loyalty can quickly shift. This is why retail merchandising is crucial. 

Retailer brands are also going to have to ramp up their service levels in order to compete with Target. If a customer feels unsatisfied because of defunct retail merchandising or as a result of long line ups or not being able to find product or have their questions answered in a timely fashion, their choice of retailer may change.   

Retail merchandising offered by an experienced merchandising company can tackle all of these problems. On the brand side, a merchandising company can provide services which ensure that your brand is receiving the attention necessary. Planogram compliance and mystery shopping confirm that your products are located correctly and accurately priced, which works to ensure that the customer experience is a good one.

On the retail side, a merchandising company well versed in retail merchandising can ensure that when you need support it is there, even on short notice. By providing ‘people support’, a merchandising company can outfit a team to help you manage staffing issues at peak times, both for on floor or stock room support.

It is anticipated that Target will become a significant force and will create significant competition to both brands and retailers alike. Don’t leave anything to chance – make sure that you leverage retail merchandising to boost brand performance and ensure strong customer retention.

For more information about how to leverage retail merchandising, or to find out more about any of the services we offer, please contact Storesupport by calling 1-877-421-5081 or visit www.storesupport.ca.