Space Management

1036 Words5 Pages
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... ... middle of paper ... ...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.
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