Retail
The world of retailing has changed dramatically since the emergence of department stores, chain stores and supermarkets in the early 1900s. The driving forces then were mass production, wide distribution, the emergence of effective advertising, consumer credit systems and innovative customer service offerings such as formal return policies. The same factors are continuing to propel the industry toward globalism, supported by trade liberalisation, falling transport costs, rising standards of living, and the emergence of popular culture as a global phenomenon.
Retailers will expect you to guarantee consistent product quality, and assure quick order and delivery timeframes as a matter of course.
Want more information?
Smaller retailers
Small retailers, such as gourmet shops, will generally undertake their own purchasing, as the range of products they stock is integral to their own positioning.
Trade expos are a useful place to start looking for potential distributors and stockists. If you have some idea who your target audience might be, incorporate a drawcard in your expo plan, and mail out invitations to likely attendees before the expo.
Most smaller retailers are overstretched, and will expect you to chase them for re-stocking. The most effective approach is to make a personal visit to consolidate the relationship, check the shelves and re-stock on the spot. This method is still used today by very large suppliers such as Cadbury.
Larger retailers
Visit Supermarkets for more.
Small businesses face an uphill battle in accessing chain stores. Buyers prefer known suppliers, with a track record of delivering quality product on time, a national presence, and locally accessible distribution points. Buyers like suppliers with a large range of products, who can quickly fill extra shelf space if their products are popular. Additionally, the global trend is to reduce purchasing costs by reducing supplier numbers.
Larger retailers employ specialist buyers. Buyers have the ultimate say in whether your product will be purchased. They are bombarded with product deals, and it is not easy to capture their attention.
They favour products that
- have a large potential market and a wide appeal
- are supported by solid market research
- can be delivered in volume and consistently during the year
- are priced appropriately relative to their own market positioning
- have assured, consistent product quality
- are packaged in a way that is robust and readily displayed
- are shelf-stable
- have a well-defined brand message and promotional strategy
- give them an edge over their competition
Selling to retailers
1. The interview
- Prepare for the interview by reviewing your business and marketing plan. Have a range of samples ready, and be clear about the key target market.
- Be able to identify the key benefits to the consumer and the key differences from the competition.
- Research the retailer, understand their margins and make sure there is a fit between their target market and the target market for your product.
- Be ready to address the key question from the retailer or supermarket: ‘What is in it for me?’
2. Do a sales presentation
- Use the above information to go through the sales presentation. Quite often the retailer will come up with a reason why they can’t stock the product. Use your prior research and information in the sales folder, as well as incentives, to overcome the objections. Close the sale by asking a question such as ‘How many would you like to start with?’
3. After sales service
- This is extremely important to ensure the retailer gives your product the best chance (eg, good shelf position, encourages consumer trial). This is done via phone calls and visits where you will ensure the display is tidy and enticing. This is also a good time to organise tastings for staff and consumers.
How has the SA Food Centre helped others?
The case studies below show examples of assistance offered to South Australian food businesses.
Case Studies
Barossa Fine Foods
Richard Gunner Fine Foods
Article
Retailing Rewards
Roger Drake’s entry into the world of supermarket retailing was anything but encouraging.
Who can I contact?
The SA Food Centre can help your business develop relationships with retailers. In contacting us we can provide advice and assess your business needs.
- Page last modified: November 15, 2011, 5:51 pm
- Welcome URL is http://www.safoodcentre.com.au/
- This page: http://www.safoodcentre.com.au/customers/retail
