Shopper Marketing - September 2017 - 9
deal of store-brand products. By focusing on
a limited number of branded products, these
hard discounters can move a great deal of
merchandise and secure volume discounts
You should walk any U.S. Lidl or Aldi store
and apply the "Four C's" of display effectiveness to see how the "limited number of
branded products" are being deployed. The
lone national brand is there to "Command"
shoppers' attention and "Connect" with them;
however, the plethora of lower-priced store
brands crowded all around it "Conveys" a different message and thus, "Closes" the sale.
Whether national brands will continue to
matter or not will depend on whether other
CPG companies choose to follow Kraft Heinz's
lead. The good news is that I detect a greater sense of urgency from industry suppliers
in addressing the complexity of this issue.
Flip, for example, to the Menasha "Editors'
Choice" blurb on page 72 of this issue: The
company's focus this year is on "collaborative
discussions" aimed at getting in-store considerations a better "seat at the planning table."
Likewise, Jon Kramer, WestRock's VP-Marketing, sent out a note the other day sounding a similar theme. CPGs, he warned, need
to "go much farther back through the supply
chain to areas such as product development,
portfolio planning, packaging strategy and
fulfillment and move the conversation away
from price and back toward brand-building
engagement. Transforming the supply chain
is a complex undertaking. It requires far great-
er internal alignment than has traditionally
been exercised at most CPGs, with all organizational functions working in tandem toward
common goals. It demands more strategic
collaboration with key retailers (who themselves might have to be re-evaluated). And it
will require assistance from third-party suppliers that have both the capabilities and the
desire to be full business partners rather than
just commodity service providers."
If you've never bothered to walk a "trade
show" before, I'd suggest now is the time - and
P2PX is the venue - to start realigning priorities. And lest you think this show is nothing but
corrugate floorstands, here's a small sampling
of concepts you'll find on the P2PX show floor:
Artificial Intelligence (AI) Retargeting Modules;
Lapsed Shopper Programs; "Intelligent Offers"
digital solutions; software platforms for optimizing social media campaigns; Retail Attachment Scorecards; and "Instore Vision" apps.
One last thing about the exhibitors at our
shows: You're working with brands you can
* According to Brandless.com, "BrandTax is the hidden
costs you pay for a national brand. We've been trained to
believe these costs increase quality, but they rarely do. We
estimate the average person pays at least 40% more for
products of comparable quality as ours. And sometimes
up to 370% more for beauty products like face cream.
We're here to eliminate BrandTax once and for all."
Bill Schober is editorial
director of the Path to Purchase
Institute. He can be reached via
phone: (773) 992-4430 or email:
SEPTEMBER 2017 SHOPPER MARKETING y