Space Management
In the highly competitive world of fast moving consumer goods (FMCG’s), the battle for proper exposure to consumers has never been so intense. Fast moving consumer goods, or FMGC’s as they are commonly known, are products which are the common staples of everyday life, such as food items, toiletries, cleaning products, and beverages. For the purposes of this assignment, I will assume the role of the marketing manager of a manufacturer of toothpaste. The market for toothpaste is focused across the range of consumers, and includes both the low end and higher range of the consumer FMCG marketplace. The winners in the race to sell greater quantities of FMCG’s will inevitably be the manufacturers and distributors who are able to secure the largest quantity and highest quality shelf space in retail outlets, thereby gaining the greatest amount of mindspace in the mind of the consumer. Since the shelf space in a given retail outlet is owned entirely by the retailer, it is the manufacturer or distributor who is able to present the most compelling value proposition to the retailer who will ultimately gain control of the retailer’s shelf space. Accordingly, in order for our toothpaste manufacturer to be successful in the battle to control consumer mindspace, we must first be successful in his battle with the retailer to gain sufficient exposure to shelf space.
From the perspective of the retailer, the equation is simple. Shelf space is a resource, and it must be properly exploited in order to yield the highest return. This is known as space management, and while it seems to be a simple concept, it is ultimately the yardstick by which the retailer’s success will be measured. The retailer must carefully take...
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...r company has presented the retailer with a very compelling value proposition, which is in fact a win-win situation for all involved. The retailer will benefit from his perceived affinity with our quality brand, and his customers will remain loyal and shop at his store. The increasing popularity of our products through positive brand reinforcement and increased visibility will provide our company with the “power brand” status that we need in order to maintain our strategic relationships with retailers. Consumers benefit as their needs are met by the increased availability of our full range of products. It is the combination of modern marketing and proper space management that allows this type of situation to occur, creating value at all levels of the supply chain and ensuring that both our company and our strategic partners are maximizing their profit potential.
Persuasion has always played an intricate role, in many ways, when it comes to promotion of a Fortune 500 companies like C.V.S. corporation. With the largest pharmacy chain of over 7400 stores in United States; no wonder they are at the top five largest pharmacies in the United States based on revenue generated from prescription only. However it's not only prescription is sold in stores; there are assortment of general merchandise including food, sundries, beauty products as well as health products sold there. In one of the stores I visited for this paper, located at 39th and Main street, I noticed that the products were sold in minute quantities so as to reduce the price of the merchandise.
Having promotional activities such as discounts, free-shipping on online purchases, and bold advertisements are not sufficient to put A&F at the top of the iceberg. Several improvements to the brand as well as customer service have to be done. As keeping existing customers is cheaper than getting a new one, A&F needs to build brand resonance with its customers, whereby consumers can engage actively by investing time, money, and other resources, feel a sense of community as customers are made to feel affiliated with the brand, express attachment to the brand whereby consumers “love” A&F, and last but not least, convey behavioral loyalty through repeat purchases. Loyalty programs can be added to A&F’s plan in rebuilding its brand image, and
Another marketing strategy that Clorox is employing is consumer fragmentation. Through consumer fragmentation, the company is able to group its target consumers into groups that can be served with a particular advert or marketing approach. Clorox also intends to increase its brand investment behind superior products and more targeted 3D plans. The company appreciates the influence that media has on the purchasing decisions of consumers, it therefore wants to evolve its demand-creation model of 3Ds in the face of increased fragmentation of retailers and consumers. The three D’s of the model stand for desire, d...
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
Maxx benefits from chaos by picking up the pieces, merchandise at a discount, when other retail stores close, or have overruns, or unexpected changes in demand and in return pass these savings on to their customers who shop for value (Levine-Weinberg, 2016) This is the demand-side benefits of scale when the consumer rather pay less for name brand merchandise than to pay more for the same designer in the department store. The stores that where having difficulty in the retail market left themselves vulnerable by not defending their position and T.J. Maxx proactively attacks this opportunity with its purchasing power and passes the savings to its customers. This proactive process of attacking and defending is what Wee (2016) calls the holistic and balanced perspective of handling competition. Moreover, this business warfare strategy of attacking struggling competitors is called offensive marketing warfare strategy (Grewal, 2014).
He has worked with numerous of the Fortune Global 500 companies as a brand building expert. He has truly mastered consumers’ deepest desires by exploit hot spots in the human brains to compel them to purchase blindly and willingly. As a result, Martin has successfully help launched new products and brands. Martin created this book during the worst economic crisis since the Great Depression. Martin’s main purpose of this book was not getting us to stop purchasing, as that is nearly impossible. “The purpose is to educate and empower you to make smarter, sounder, more informed decisions about what we’re buying and why” (Lindstorm 8). By exposing marketing companies tricks and tactics, consumers would be equipped to battle the war on impulse purchasing in a time of
Armstrong, G, Adam, S, Denize, S, Kotler, P, 2010, Principles of Marketing 5th Edition, Pearson Australia Group, Frenchs Forest
12. Raman, K., and Naik, P.A., (2005), Integrated Marketing Communications in Retailing, [online] Available at: http://ramanassoc.com/yahoo_site_admin/assets/docs/IMC_in_Retailing.26100503.pdf, Accessed on: 1st April 2014
The A-Team has introduced a new product called Pepsi Platinum for the company, PepsiCo, in Phase Two. This dissertation will identify segmentation criteria that will impact PepsiCo target market selection. This dissertation will describe the organizational buyers and consumers of Pepsi Platinum and factors that influence their purchasing decisions and discuss how these factors will impact PepsiCo’s marketing strategy. Finally, this phase shall analyze current competitors and define the competitive landscape for Pepsi Platinum.
...e different supply chain mechanism ultimately helped Morrison to be strong and stable in replying the customer. In the following there have been some strategies that have been introduced in Morrison to survive and to make profit in the competitive market.
...nal supermarket retailers will reinvent themselves over a period of time, in order to attract and maintain a loyal customer base. New concepts, neighborhood marketing, and innovation will be the key to success over the next decade.” (Imlay, 2006) What is propose is that a smart mix of products, perhaps catering to demographic tastes and needs, may tempt the shopper not drive out to the big box store, but instead loyal to their local market.
The collaboration and carefully connected network was consistent with a culture that allowed the retail kingdom to remain flexible, profitable, and prosperous for two decades (Mehrmann, 2009). Their 4S business model – service, selection, savings and satisfaction where the customer has a choice of wide variety of merchandise, received 110% back if they found a better deal, 30-day money back guarantee and the customer service of high trained sales professional help the company establish a competitive advantage. Their point-of-sale systems facilitated quick transactions and took care of their inventory (Wells
[a] company may have a unique vision, a superior product, strong management and an efficient distribution system – yet if it is not able to convey the core benefits of the brand to its target audience it will ultimately fail. [5]
The shifting of the consumer’s taste of simple products to high quality branded products is not sudden. It grew out in the middle of the 20th century and the companies selling various products needed a new way to differentiate their products from the others giving it a unique identity.
The second problem was solved by the brand is a simplification of choice. Every day consumer is faced with many similar products, and he just physically does not have time to compare all the annotations, the percentage composition, indications and specifications (f...