Re: [CH] $$$
peter g (peter.g@telus.net)
Sat, 12 May 2001 01:32:01 -0700
Peggy ,
Okay , you're post has been food for thought.
i think i'm gonna soften my stance on ($5- $9) 5-oz. hot sauces.
at the mega-grocery where i buy a favourite brand , i've watched the
"palette" of brands shrink as Grace Foods has aggressively marketed
their own varieties.
here's an example of how it might be done with a "brand X".
it's an insidious process when done correctly by a skilled sales
rep.
they start by re-arranging shelf stock ; putting their product at prime
height & increasing the number of brand X "facings" in that area.
( basically they shove the competition to the back, side, down etc.)
it's often done at the individual store level, sometimes with -
sometimes
without the knowledge & consent of the store manager or person
responsible for that shelving area. this way, when a consumer looks
at a shelf section, he's confronted with a "wall" of brand X near eye
level, and limited display of the competitors product, usually lower on
the shelf space.
next will come a very attractive price offer (usually with agreements
for display & advertising). the retailer stocks up at the low price.
the ad runs & sales are OK ... but hey, there's still lotsa this stuff
left.
better get it onto the shelf to move it. less space again for other
brands
once again (fewer spots on the shelf equal fewer sales).
the system works quite well, because the retailers own stats will show
that brand X has sold # cases more than brand Y consequently the
re-ordering process takes over ... guaranteeing high inventory levels,
which in turn guarantees prominent shelf position, which guarantees
higher sales volumes, which again justifies a larger order at wholesale.
(holy mackerel ... how'd i get going on this?!!)
it works folks.
the result of all this careful manipulation, over time, is that the
consumer (that's you & me) is often left with limited product choices.
the brand Y sales rep will be told "sorry, we've got enough sauce" .
the store might eventually stop carrying some brands.
we may actually begin to believe that we Prefer brand X !
and in the case of hot sauces, it can mean that sometimes the
bottles on the shelf are uh ... beyond their prime (old inventory).
so ... as i consider the difficulties faced by small producers in
competing with the big name brands; i realize that the "little guy"
doesn't have the economies of scale when it comes to production,
shipping & especially merchandising.
therefore ... for the sake of "product diversity" ... OK, variety;
a higher price at retail is justified. how high? is up to the consumer!
incidentally, for the past five years or so, i've done some shelf
re-arranging of my own. Every time i'm in that store, whether or not
buying hot sauces, i make Damned certain that my fave gets a few
additional "facings" in the right area !! guerrilla consumerism?
i call it "fighting fire with fire".
regards
peter g