I owned a Pepperidge Farm distribution franchise for four years, and I became very aware of the importance of grocery/convenience store real estate. It is remarkable how much difference both the products location, and amount of shelf space can make.
Chain stores make deals with distributors for preferential placement and shelf space. This takes place at a corporate level and is the same at each location. Usually the bakery that makes the store brand also has the front of the aisle. I had some success in increasing my shelf space by 30% in one store and my sales were also increased by 30%. With that increase I believe that I hit the sweet spot. Additional space would not have produced more sales at that point.
In chain stores I was able to set up special displays at alternate locations in support of promotions. Sometimes this worked out, but people are creatures of habit and they are used to looking for products in certain places.
Owning a business in distribution definitely gave me some insights into marketing.
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