Customer meetings
You need to prove you are different and that your product will sell
In person meetings are some of the most valuable time you get with your customers. Your sales people should have the ability to walk a potential customer through the differences your product brings to the category. There is no reason a retailer will make room for a ‘me too’ product. Your sales people should also be able to illustrate the sales plan you have in place to ensure your product sells. Often this will be their biggest concern. You need to prove you have the program in place to deliver the sales they want.
In person meetings should be a conversation and an opportunity to learn about your customers. Yes, your sales people need to explain how your product will perform and how your offering is different, but they also have to listen and negotiate the plan you have built.
SKUFood meeting agenda
Over the next few weeks, we will discuss the components of a meeting with a retailer. Think of your face-to-face meetings as a journey. You cannot cover everything in the first meeting. You should save a few facts, stories and opportunities for upcoming meetings. You cannot develop your relationship in one meeting.
When you are developing your presentation, it is important to keep in mind the purpose. The purpose of an initial meeting is to enlighten them about how your company and specifically your products will grow their sales and profits. The purpose of your meetings will change over time. You might need to negotiate a price increase or get a new line extension listed. Your approach needs to change to support your purpose.
Retailers need to see you as supporting their position in the market, driving traffic into the store and selling products. The purpose of the meeting is not to do a commercial for your business and educate them on all the great things you are doing. Category managers do not have time for a commercial about your business. We will dive into each segment of the meeting in upcoming newsletters. Our recommended format for a meeting is the following agenda:
1. Cover page
2. Agenda
3. Introduction
4. Point of differentiation
5. Sales plan
6. Costing
7. Sampling
8. Credibility
9. Conclusion
The following outlines the purpose and content suggestions for each section:
Point of differentiation
It is a lot of work and costs a lot of money for a retailer to list a new item. Setting up items takes time and people. There is a significant cost at store level when the existing line up must be changed to get the new products on the shelf. Consider the cost of paying people in 80 stores to take the items off the shelf to re-line a category.
It is true a lot of this work has been shifted to suppliers. You set up the items in the retailer’s portal. It does make more sense because you should have all the pertinent information. The challenge, if you do not so this work often, is that each retailer’s portal is unique and they are not the easiest things to navigate.
You might also be thinking about listing fees. This is really the origin of listing fees. Retailers decided there was a cost and they would charge for it to recoup the costs. Then they realized how valuable the shelf space is to suppliers and they started to charge more.
These are definitely factors in the decision but the reality is your customers need to understand how your product is different and what you bring to the category. As you walk them through the unique attributes show them how you reinforce this in your packaging and everywhere else in your communication.
They will be looking for tangible differences, not ‘it tastes great’ or ‘everyone loves it’. The differences also need to be attributes that resonate with your target market. If they are looking for more fibre, great. If it is something you want to see in the market that is not a point of differentiation retailers will get excited about.
This is a great opportunity to ask some questions. If you know the point of differentiation you bring is related to extending shelf life you can ask them, ‘are your customers looking for more time to use the products in ABC category?’ You know the answer will probably be ‘yes’ which provides and great opportunity for you to share how you have extended the best before date.
Sales plan
You need to prove to your customer you have a plan to ensure your product delivers great sales or at least the sales they expect. We often say to people, ‘the retailer is not your sales and marketing manager.’ They operate stores. Yes, they will come to you with opportunities (when you have a good relationship) but you need to build the plan.
You do not have to share everything with them but you do need to ensure they have the confidence you will be doing everything required to generate sales. Depending on the retailer, they will also want to see the level of trade spend you are planning for. Trade spend is the money you will invest with the retailer in ads, in store specials, loyalty programs and other initiatives. In most grocery categories retailers will expect a certain percentage of trade spend. They know what the big players are spending to generate their sales.
This is the opportunity to negotiate with your customer. You should have some initiatives in there that are unique to that retailer. The obvious choice is loyalty. They see these programs as ‘theirs’ and need to generate participation.
Don’t share all of your secrets. A simple chart with the months across the top and the different components of your plan down the left side. Put an X or a check mark in each month where you are planning to implement the corresponding initiative.
This is the best opportunity to gather one of the most crucial pieces of information from your customer. The sales they expect for your item, in their stores. We prefer to ask the question but also provide the answer. If your research tells you in this type of store you should be selling 12 units per store per week then share this with the retailer. You can ask the question, ‘based on our experience we should be selling 12 units per store per week. We have built a sales plan (or promotion plan) to deliver this level of sales, does this work for you in your stores?’ You need to know this number. This is the best time to ask for it.
Next week we will talk about cost of goods and sampling.
I do have travel coming up to Toronto, Guelph and Winnipeg 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 the co-founders of Saltwinds Coffee, Laura Richard and Brad Rideout, to explore how innovation, science, and entrepreneurship have come together to create one of Canada's most unique coffee brands. From their roots in New Brunswick to expanding into retail markets. Saltwinds has built their business by being different through its proprietary Ocean Air infusion process that brings a distinctive maritime element to every roast.
Laura and Brad share the story behind building Saltwinds Coffee, combining expertise in chemistry, product development, technology, and business growth to create a brand that stands out in a crowded category. They discuss the challenges and opportunities of bringing an innovative product to market, the importance of differentiation, and how they've translated a unique concept into an award-winning brand with national reach.
We also explore the balance between innovation and commercialization, the role of storytelling in building consumer connection, and what it takes to scale a premium food and beverage brand.
If you would like to be a guest send us a note. We are always working on the upcoming episodes.
The FCC Food & Beverage Summit is coming to Winnipeg on September 29 and you’re invited!
We’re bringing together food and beverage entrepreneurs, industry experts, retailers and more for a full day of insights, inspiration and connection. From industry-leading speakers to a marketplace showcasing incredible Canadian products, it’s your chance to learn what’s new, grow your network and take your business to the next level.
If you’re a food or beverage entrepreneur, you won’t want to miss it. Seats are limited. Reserve yours now!
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.