Retail Distribution - how it works
The retail trade, the store makes the decision on which "brands" or
products to carry in it's stores. This Brand decision is made at the specific
SKU (stock keeping unit) level. Retailers constantly make store by store changes
in the flavors, the colors and the sizes of products they carry based on sales
volume.
Balance inventory with consumer demand
Retailers as consumer focused businesses need to satisfy all of their
customers' needs. They hate to miss a sale. Retailers want consumers in their
stores to be able to find and but all their favorite products. However,
like every commercial enterprise to stay in business retailer must be concerned with
productivity and efficiency. Retailers measure efficiency
in sales dollars per linear foot of shelf space.
Stores use computer programs with scanner data to compare product units sold per
month with shelf space used. If a given Brand product (SKU- stock keeping unit) drops below a
certain dollar per linear foot of shelf space threshold it is
"discontinued". That
particular product (SKU) loses retail distribution.
Some store chains make this distribution decision across their entire chain.
It is often an "all or nothing" proposition; all the stores in a chain
carry the product or none carry it. Others retailers have geographic zones and only drop the product from stores in a certain
geographic area.
If shelf space is "Brand housing" - who has trouble
paying the rent?
Any Brand or product with retail distribution problems generally falls into
one of the following
categories.
It is a "Mature" brand - an older brand or product not as popular
as it once was
It is a New brand or new product being rolled out
It is a Regional brand- it sold only in certain parts of the country
Seasonal brands - or a seasonal product
It is an odd size, a good example are Food Service sizes these are the big sizes used by restaurants and cafeterias
BrandFinder provides information and marketing services to Brand
Marketers. These marketing efforts are designed to get specific local
retailers to carry the favorite Brands of specific consumers.
How
BrandFinder targeted email helps a retailer sell more from the same
shelf space.
A local retailer can "carry" and sell a
consumer's favorite brand without committing valuable shelf space for a
product which is infrequently purchased. To get a retailer to carry a
product a Brand marketer can guarantee the retailer the product sell
through to consumers. BrandFinder insures this guaranteed sell through
by sending timely, personalized email communication to consumers
instructing them to go to a specific retail store and asking at a
specific location inside the store for their favorite Brand.