From Our Print Edition

Every new item deserves a marketing plan, especially niche items without the big bucks. These items are key to differentiation and much more.

It’s not easy being a small brand, and retailers need to give them more serious consideration. They deserve it.

Almost four years ago a good friend of mine gave us his thoughts on this. He questioned if retailers were merchandising plant-based foods for profit, to satisfy consumer wants or to build loyalty. He went on to question if the consumer was buying products based on habit or what he called SWAG (scientific wild-ass guess) method.

BOTH SWAG AND HABIT

His conclusion was a little of both. He rightly pointed out that these new products were given shelf-talkers (sometimes), and little-to-no online education. He added that retailers just slapped a price on them without any fanfare about the product bene- fits and then exiled them to the bottom or top shelf, often with just one facing, and rarely any endcap or secondary display support.

What my friend was trying to call out was that new items that generate new sales and, in many cases, may represent the new trends that younger consumers are looking for (and even demanding) are given little fanfare, support or space. Rather it’s the big national brands with the marketing, merchandising dollars that get their items the primo shelf space and endcaps as that is the safe thing to do.

‘What did need to happen was working with and listening to both my customers and manufacturers. Just as with any business start-up, we needed a plan for investing time and effort into the item.’

So where are we today? Did we listen to my wise friend and take his counsel to heart? Sad to say, no. Even today the little guy continues to be the underdog when it comes to launching new items. Yes, a few retailers have “support new item day” and have supported some minority business ventures as well. But all in all, it’s business as usual.

In fact, walking the aisle nowadays, there are few if any new item tags. On retailer websites, showcasing opportunity for new items is all but dead. The small manufacturer must rely on word of mouth, a lucky article touting the benefits of their item or just pure luck. Asking for a display or demo is laughable as there is still no way to compete with the big guys. Yes, a few retailers have gone from burying the item on the top or bottom shelf, to “creating“ the one door section down from the 15-door pizza section, next to the one door ethnic/specialty door.

As a former buyer, I was in charge of a category, and with that came the expectation of sales and profit. Yes, I understood markdowns were bad and space was at a premium. Yes, I saw the big money offer for displays and ads. But what I also saw and more important listened to (including my friend’s wise words) was that as a buyer and retailer I was also the eyes and ears of my customer. Those customers expected me to be on top of trends (not fads) and not be afraid to fail and learn from what didn’t work and what did. Just taking on an item and thinking that it was going to rocket to the top by itself wasn’t going to happen.

What did need to happen was working with and listening to both my customers and manufacturers. Just as with any business start-up, we needed a plan for investing time and effort into the item. Because, when a new item is left alone, the odds of success (and sales and profits) are slim. If we were going to put in the item, we needed to put in the time and effort to help it succeed. Sure, not all items are going to be home runs whether they’re from a big or small manufacturer, but not giving them the same opportunity is a recipe for failure.

‘Sure, not all items are going to be home runs whether they’re from a big or small manufacturer, but not giving them the same opportunity is a recipe for failure.’

I found out that by taking chances on new items — items that were in the news, on customers’ minds and shopping lists — required having a structured plan to showcase them. It definitely paid off. In fact, “new” did create additional sales and profits, and helped make us their destination shopping spots. It opened up the door to more “little guys” to showcase their new items. And even in a few cases it allowed me to have two of them to partner up in promoting their products.

A PERSONAL CONNECTION

I’m sure we all have seen the yearly TV ad from American Express supporting small business week. Perhaps retailers could piggy back on this in-store and online by featuring items from small businesses, including local brands that they carry in their stores. American Express’s event is in May, but you don’t have to wait for that. You can create your own small business event whenever you want. Feature new items, include a few lines about the company and you have created a personal connection with your customer and manufacturer. This not only lets your customers know that you’re listening and caring about their needs, but at the same time gives a shot in the arm to the little guy who after all did listen and is taking the chance on success.

I couldn’t end this without giving credit where credit is due, to my friend and Editor Emeritus, Managing Partner of Frozen & Refrigerated Buyer, Mr. Warren Thayer.

Bob Anderson is the retired vp/gmm at Walmart, where he worked for 17 years. He can be reached at [email protected].