Focus on what really makes a difference
We try not to use too many sports analogies or stories in our SKUFood newsletter. I could not resist when last week the Toronto Maple Leafs were in the news for introducing a new captain. It got me thinking about whether this is something that will really make a difference, or one more decision to keep the fans engaged and on the edge of their seat for that next Stanley Cup win.
Full disclosure, growing up in Montreal in the 70’s, I am a Montreal Canadiens fan. Not someone who watches every game, but they would be my team.
The 57 year drought for Toronto winning it all is well documented. Every year will be ‘the year’ for Toronto. Watching and listening to Toronto fans is almost more entertaining than the hockey. They do have a very good team right now and probably should have done better than they did in the playoffs.
Meaningful change
Being the captain of an NHL hockey team is an honour for the player and comes with added responsibility. The captain in Toronto was John Tavares. Probably a good choice for the role and someone who was the best leader on the team. This summer, the leadership in the organization decided it was time to shift the honour of being captain to Auston Matthews. A great player who scores a lot of goals. Not sure he is a great leader, but we will see.
Toronto schedules a press conference and there is a lot of talk about improving results and how this change will be meaningful.
Yes the captain on a hockey team is important, but the sweater that gets the ‘C’ does not determine the outcome of many games. That is more about the performance of the players, the strength of the game plan and how they react under pressure.
Is this window dressing or meaningful change? If the goal of the Toronto Maple Leafs is to win the Stanley Cup they need a lot more change than who will be the captain.
The first ideas for change might not be the best
We work with many entrepreneurs who want to grow their sales. Probably a top objective in many businesses. Unfortunately, they focus on the wrong things to make this happen.
If a product is not performing it is interesting what people invest in.
I have heard people say ‘sales are not there, we should re design the website’. Perhaps your new expensive website will do a better job explaining your value proposition or drive a few more units through e commerce but will it really deliver more sales at retail? Probably not. You need a good website but if you already have one and sales are disappointing this is probably not the solution.
Another common one we hear is ‘we should re-design the packaging’. Yes, you need good packaging, but it is not too often consumers do not buy because they don’t like the packaging. Yes, you might sell some more if it is better but it is expensive and complicated to change so make sure you really need to do it.
Changing things like websites and packaging are tangible and they are projects you can tackle in your business. When it is done there is a sense of accomplishment. Like Toronto you can have a new conference to introduce the change.
Find the meaningful change in your business
If you are selling in retail there are some changes that will probably deliver much better results. They are boring and tedious but they will probably sell more.
1) What are your sales per point of distribution? Do you know how much you are selling per store? Once you understand this number it is your baseline to grow. Every time you make an investment in a promotion you should measure the results.
2) How is your in stock position? If it is not in the store, when a consumer wants to buy you are losing sales. This is boring work and it costs money. Every time you are out of stock you should be trying to figure out why. If you are doing direct store delivery you might need to visit stores more often or leave inventory out back. If you are through the warehouse it could be an ordering issue in the system. Regardless figure it out so you are in stock.
3) Is your trade spend plan effective? We know this industry has trained consumers to buy on special. Does not mean you need to be on special all the time but you will need to play the game. Do you have a plan in place, driven by what works for you? That also means ramping up inventory in time for increased sales and getting this out to stores.
4) Are you working on the relationship with your customers 52 weeks of the year? This is not something to be done only in meetings. You should be finding opportunities all the time to interact and provide value. This should lead to opportunities for sales and other events like store manager meetings to promote your products.
5) What type of relationship do you or your employees have with people working in the stores? They should understand your value proposition and be advocates for your products. This is earned over time and many store visits. It pays off when they recommend you or let you know if there is an issue.
Do you need a new captain or meaningful change?
I am sure the Toronto Maple Leafs will make other changes but it just got me thinking when they were all talking about how this will make the difference. A new website might make some difference in your business but there are other better areas to focus on. Perhaps not as exciting but they will deliver the results you need.
Peter
SKUFood Recipes for Success Podcast
The response to our SKUFood Recipe for Success podcast has been great. We want to thank everyone who has been with us as a guest. So many interesting conversations about our industry.
In this episode, we're delighted to sit down with Carly, a culinary innovator on a mission to elevate kitchen experiences through the power of mustard. As she embarked on her journey towards obtaining her Red Seal Certification, Carly discovered the transformative potential of mustard as a culinary secret weapon. With a simple spoonful, she realized how mustard could effortlessly elevate familiar dishes to new heights of flavor and complexity.
Drawing on her expertise as a trained chef, Carly has embarked on an entrepreneurial venture, carving out a niche in the local food market for high-quality mustard. Her creations not only cater to seasoned chefs but also invite enthusiasts of all cooking levels to experiment and explore the culinary magic of mustard. Join us as Carly shares her insights, experiences, and the delicious journey she's undertaken to fill the mustard gap in the food market, inspiring us all to embrace the simple yet profound impact of this versatile ingredient in our kitchens.
Loblaw to test No Name store
Loblaw have announced they will test 3 No Name stores. These small footprint, limited SKU, low capital investment stores will only carry No Name products.
Sounds a lot like a Lidl to me.
In one article they stated No Name products will be cheaper than anywhere else. This might cause some issues for their No Frills franchisees. It does reinforce the consideration to produce private label. It sounds like there will be little to zero national brand in these locations.
If you are in one of the markets where the new store is let us know if you like it.
