Value propositions for customers
Your sales people should know this better than anyone
Last week we focused on your value proposition for consumers. Your sales people should be able to articulate this anywhere, anytime. A second value proposition your sales people should be very clear about, is your value proposition to your customers. They own the relationship with your customers (retailers and distributors).
Your customers have different needs than consumers. Some can be common but many are unique to retailers and distributors. Really this is the ‘why’ they should put it on the shelf.
Your sales people should be able to articulate the customer value proposition.
There are several components in a good customer value proposition:
1. Target store
2. Needs/wants
3. Product benefits to the retailer/distributor
4. Point of differentiation
Any shelf is not the right shelf
You have defined the target market consumer for your product in your consumer value proposition. Now you need to answer the question-where do they shop? We know people shop different stores but where are you most likely to find the people who are most likely to buy your product.
We often see small to medium sized businesses who are just happy to get their product into a store. We get it but often this can create more work than it resolves. When your product is in the wrong format, with consumers less likely to buy then it will not sell. Retailers will get frustrated and want to de-list it or you will have to spend a lot on trade spend for discounts and other incentives for consumers to buy.
Determine where you have the best chance and prioritize these retailers. You need to consider their position in the market, what they have on the shelf right now and your ability to get the product into their network or store. Once you find some good potential opportunities you can focus your efforts on these customers.
Needs/Wants
Retailers and distributors have specific needs. We will list some here for you to consider:
· Sales
· Food safety
· Third party audits
· Claims (Gluten free, Lactose free, organic, Non GMO)
· Shelf life
· Best before dates
· Service level
· Specials
· In store specials
· Meet or exceed product standards
· Private label
· Local food and beverage
· Store traffic
· The product story
· Healthy products
· UPC code/GS1
· Electronic data interchange (EDI)
· Competitive product cost
· Dedicated salesperson
· Sustainable packaging
This is just to get you thinking. You might have some that are specific to your category. You can’t win in every area so focus where you are strongest.
Product benefits to the retailer/distributor
This is one area where your customer value proposition should be very different from your consumer value proposition. Metrics such as incremental sales, service level over 98%, selling the targeted amount at regular price and delivering consumers to the store are all examples of benefits your customers will get excited about.
You might need 28g protein to get consumers to buy but retailers do not really care. They are more interested if it will sell at regular retail or perhaps deliver slightly more than the category margin. You really have to think about what is important to retailers for this segment. This can change from one customer to another. One retailer might be very focused on growing sales because they have had a few bad quarters and another might be more interested in service level. Part of the job of your salespeople is to figure out what is important to each customer. This can also change when you get a new category manager or buyer.
Point of differentiation
Retailers are not looking for ‘me too’ products that just cannibalize sales of existing items. They also are not interested in de-listing an existing item to replace it with the same product that delivers the same sales. One caveat to this is if the existing item has had service level issues or the supplier did not invest enough in trade spend. Both of these would lead to them looking for a replacement item.
Be objective about this and it is really unique for each retailer and based on what they offer in the category. If the category has a leading national brand, a second national brand and two private label SKUS there might be an opportunity for a product with compostable packaging or gluten free. If they already have these options in the category and that is your point of differentiation they probably will not list your product.
To create the customer value proposition we have modified the value proposition that Al Archibald shares in workshops we do:
For "target store" who "need/want statement", this”your product/brand name" delivers "key benefit to the retailer”. “Your product/brand name” is further protected by its “primary point of differentiation“ which makes it unique in the category.
There are many different versions of value propositions. Find the one that works for you. Your sales people should have a clear understanding of the components and review it a couple of times every year.
I do have travel coming up to Toronto, Edmonton and Guelph so if you want to connect or have an event in any of these locations give me a call or send me an email.
Peter
SKUFood Recipes for Success Podcast
In this episode of SKUFood Recipes for Success, we sit down with Jennifer Frame, a marketing and innovation strategist with more than 18 years of experience across retail, FMCG, luxury, and technology in both Canada and Europe.
Originally from Nova Scotia and now based in Geneva, Switzerland, Jennifer has built a career helping brands sharpen their positioning, clarify their growth strategy, and expand with confidence. Her experience spans global leaders like Procter & Gamble and Manor AG, as well as high-growth startups, giving her a unique perspective on what it truly takes to scale across markets.
As Co-Founder of Seajai Collective, Jennifer now helps Canadian companies enter the European market while supporting European businesses in expanding internationally. Her work focuses on strengthening brand, marketing, and commercial fundamentals before chasing growth. In our conversation, we explore what brands often overlook when entering new regions, the cultural and commercial nuances of European markets, and why successful expansion starts with strategic clarity, not just ambition.
This episode is a must-listen for founders and food brands considering export, international partnerships, or scaling beyond their home market — and for anyone who believes growth should be intentional, strategic, and built to last.
If you would like to be a guest send us a note. We are always working on the upcoming episodes.
Opportunity for Atlantic Food and Beverage
We are very excited to have the opportunity to work with Food and Beverage Atlantic to deliver “Sales & Marketing; Winning in Canadian and export markets”. Norm Purdy, Al Archibald and I will work together to deliver 6 weeks of great content to help businesses get to the next level.
We keep saying there has never been a better opportunity. Now is the time but you also need to have the right resources and processes in place. We have written a unique business case to illustrate the decision making and tools required for a successful launch into new markets.
Space is limited and filling up fast.
We talk about defining a Canadian food industry then this happens
With everything going on in the world there is a big opportunity for Canadian food and beverage at home and in export markets. We talk about the opportunity to define a Canadian food and beverage industry that is unique and desirable at home and around the world.
Then some processor in Quebec is found adding cane sugar to maple syrup. This creates serious doubt in the mind of consumers and customers. Canada is known for maple syrup and people should have confidence in the right oversight to ensure product is not adulterated. Disappointing and even the oversight in place seems weak when it comes to the consumer products.
No doubt it is tough to deliver a bottom line. One way to ruin the entire sector’s chance is to cheapen the product and put misleading labelling in the market. Hopefully industry and regulators rally together to ensure it does not happen again.
With the focus on Canadian food and beverage we wanted to share a program we have developed with Alain Bosse, the Kilted Chef. We partner to share insights about Canadian food and beverage at conferences and events. We talk about where products come from, share insights about some hidden gems and of course Chef Alain has great tips for using the products at home. This is designed to be entertaining and engaging. Not just for food industry audiences, it works for everyone.