They all sell food & beverage, but they have their own way of doing it
Recently we have had the opportunity to work on a project that reminded me just how unique each retailer is. Yes, they are all selling the same products produced by our client, but they really do have their own processes and procedures to make it happen. We are fortunate in this project to be going through a similar task with every customer, so we can see how different they are.
Some have one person who will be your guide and others have several people on each call. Some have you do more of the work and others prefer to get the information and control the flow of data.
What this means for suppliers…
Learn about each one
You need to know each retailer will have their own way of doing business. Some have manuals for you to read and others will show you each step in the process to do business with them. Regardless, you need to be committed to learn how they want it done and deliver it.
We are big fans of bringing solutions. You might not know how to do each process with each retailer, but you need to be proactive and try to figure it out. Let them know you plan to do ABC and then let them confirm that is correct or they will tell you how it needs to be done differently.
You should try to understand how far out they want to be working. Even within some retailers one category manager will be further out than another. Keep track of this and make sure you are one or two steps ahead of them.
Part of the job of your sales team is to develop relationships with customers. Challenge them about what they know about each retailer and keep pushing them to get to know more. The better they understand them, the better they can service them.
Speak their language
Each retailer has their own terminology for the same things. I was always used to the Loblaw term of ‘in stores’ for in store specials. The definition being a temporarily reduced price to drive volume and perhaps warrant some over and above merchandising. If you are talking to Sobeys this is a ‘save cycle’ and if you are talking to Walmart it is a ‘roll back’. Essentially, all the same thing; a supplier funded temporary discount.
If you are talking to Costco they do not have customers, only members. They also do not have stores, they have warehouses.
Another unique feature for each retailer is their fiscal year. They have different year ends which means they operate with an internal calendar that does not follow the traditional January 1st-December 31st. Week 1 at Loblaw is different than week 1 at Walmart etc.
It is important to understand their language and keep track of the differences. You do not want to plan a promotion for week 40 on the calendar when it is really week 27 for Walmart.
You don’t know what to do
It is true if you are an expert at producing a product you might not be an expert at selling it. You do need to learn or get some help.
You can watch the category and track what competitors are doing. They might have more money to spend than you, but they are doing it for a reason. Look for patterns in terms of when they invest, how much and which tactics they use. Large consumer packaged goods companies invest a lot of dollars in temporary price reductions, but they also invest a lot to figure out what works. You can learn from them.
There are only so many tactics you can employ. You might just have to try some and see what delivers the best return. Any time we talk about trade spend we use the word investment. When you make an investment, you expect a return. Every time you invest in trade spend you should have a forecast and then measure the results. This can be a challenge, but it is so important. You have to learn every time you do something.
When you do have a win share the results with your customer. If they know you exceeded the sales projection they will be more likely to offer an opportunity again.
There are very few, if any products, that are successful sitting on the shelf at every day price for 52 weeks. They usually get delisted.
Watch the category, watch other categories with similar consumers, learn from what you see in other stores and build a plan. Measure the results and alter the plan based on performance. It might not be as much fun as product development but it will deliver results.
You need the resources to deal with them
Retailers continue to push more work onto suppliers. It is a reality, no different than booking an airline ticket or dealing with a bank. Suppliers need to have the resources within their business to do this work. It is not easy and takes a fair amount of time. It can be challenging because the production side of the business can point to a pallet of product as work done and a sense of accomplishment. In the sales department a spreadsheet with 57 columns of information that is completed and submitted to a retailer does not have the same visible proof of good work done. It all needs to be done, and done correctly.
Accept that they have their own way of doing it and put the resources in place to get the work done. If you don’t have the qualified people you might need to get some help. The most important thing is to understand them and treat each one like they are the only one.
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 privileged to sit down with Eric, a seasoned leader with four decades of experience in the food and beverage industry.
With thirty-three years on the retail side, Eric has honed his skills in distribution center operations, health and safety, process improvement, and more. His diverse expertise spans from quality assurance to procurement, bringing a wealth of knowledge to the table.
But Eric's journey doesn't stop there. For seven years, he's lent his talents to the supplier side, excelling in sales and marketing roles. His contributions extend beyond individual companies, as he's actively involved in industry organizations like the CPMA and CFIA advisory board, where he's made a lasting impact.
Currently the Director of Sales and Business Development at Algoma Orchards, Canada's largest independent apple grower, Eric continues to shape the future of the produce industry.
Join us as Eric shares his insights, lessons learned, and the secrets to cultivating success in this ever-evolving field. Whether you're a seasoned professional or just starting out, this episode is sure to leave you with a recipe for success.
Food service trends from Nestle
We are in the back half of 2024 but it never hurts to hear what people are saying about food industry trends. Especially if it is a global business with access to a lot of data like Nestle. It is also good these are created specifically for Canada.
We know trends can start in food service and migrate to retail. Food service has the ability to react quicker, create items and get very quick feedback from consumers.
I do have travel coming up to Calgary, Saskatoon, Winnipeg, Vancouver and Lethbridge so if you want to connect or have an even in any of these locations give me a call or send me an email.