“Segmentation: Retailers cannot segment consumers to the degree that manufacturers do and, as a consequence, must favour broader rather than pointed positionings.” — Greg Thain Copy Share Image
“shelfspace was also a powerful generator of mindspace. Seeing a product regularly increased its presence in consumers’ minds, and improved its image… — Greg Thain Copy Share Image
“Tesco’s Clubcard, which we shall discuss in more detail later, enabled Tesco to identify over 5000 customer needs segments with each receiving… — Greg Thain Copy Share Image
“As retailers have become competitors of manufacturers in many product categories, they reserve more shelfspace for their private label brands and dominate… — Greg Thain Copy Share Image
“The retailer features them in advertising to generate store traffic, but once the shopper is in the store the retailer has every… — Greg Thain Copy Share Image
“Importance of price: Price is imperative for FMCG retailers, much more so than for manufacturers. Retailers must constantly keep their real prices competitive… — Greg Thain Copy Share Image
“Relative to manufacturers, retailers have huge fixed costs and miniscule margins: this makes their profits more susceptible to small changes in volume… — Greg Thain Copy Share Image
“Once an expectation of promotions is established, retailers are motivated to buy as much of their turnover as possible during promotions, often… — Greg Thain Copy Share Image
“The ideal category offers alternatives in all major segments, covers a range of price points and optimises impulse buying. Since retailers focus… — Greg Thain Copy Share Image
“If the manufacturer can convince the retailer that delisting will hurt consumer satisfaction and possibly lead to store switching, then that will… — Greg Thain Copy Share Image
“The aim is to find socially and legally acceptable ways of allowing price-sensitive shoppers to pay less, while leaving the less-price-sensitive customers… — Greg Thain Copy Share Image
“The premium private label strategy is only possible when manufacturers have allowed a quality–value gap to open. This happens when manufacturers’ either… — Greg Thain Copy Share Image
“Thanks to the success of private label strategies (see Chapter 9), five of the top eight FMCG manufacturers in the world are… — Greg Thain Copy Share Image
“There are some FMCG categories where retailers are destined to control mindspace. These are the low-technology, low-image, low-novelty areas. Retailers are likely… — Greg Thain Copy Share Image
“Retailers, in general, welcome brand proliferation from manufacturers but are increasingly wary of SKU proliferation within brands. While the number of brands… — Greg Thain Copy Share Image
“Manufacturers must seek to widen their distribution and proactively embrace new customers and distribution channels, be it hard discounters such as Aldi,… — Greg Thain Copy Share Image
“What they didn’t own was the mindspace and shelfspace Cadbury had painstakingly built up over 180 years, especially in emerging markets like… — Greg Thain Copy Share Image
“If competitors are determined to grow in a static market, they may start to break the orderly market rules. Producing copies of rivals’… — Greg Thain Copy Share Image
“This is because the quality and innovation of retailer brands is limited to what they can negotiate from manufacturers. For products that… — Greg Thain Copy Share Image
“gaining shelfspace has become a more strategic challenge for manufacturers. Shelfspace has to be won by planning product offerings to satisfy not… — Greg Thain Copy Share Image
“No matter how large and enlightened retailers become, they remain generalists, and there are things that are difficult for them to do… — Greg Thain Copy Share Image
“The retail name is seen as one brand with extensions in many fields. There may be a linking theme across products, often… — Greg Thain Copy Share Image
“The sales potential of generics was always going to be limited by their poor quality – imagined or real – when compared… — Greg Thain Copy Share Image
“The retailer is interested in the consumers’ behaviour in each of the two or three hundred categories it offers, but owing to… — Greg Thain Copy Share Image
“Marketing support: Marketing targeted at the consumer is likely to improve rotation, and may affect margins. This is why promotional support directed… — Greg Thain Copy Share Image
“Since the retailers have the data, and since both benefit from its analysis, but only the manufacturer has the specialisation to make… — Greg Thain Copy Share Image
“Direct consumer contact is an advantage for retailers, as 70% of shoppers make purchase decisions in stores and are thus open to… — Greg Thain Copy Share Image
“With the exception of hard discounters, retailers have to cultivate a mainstream brand proposition for their chains; they have to be attractive… — Greg Thain Copy Share Image
“This shows that price is imperative for all FMCG retailers. They must always do two things well: Be genuinely price competitive on… — Greg Thain Copy Share Image
“The number of facings, depth of inventory, position compared to flow of traffic and the position within the store affect the amount… — Greg Thain Copy Share Image
“P&G excel at proactively managing their product ranges, as they have a history of divesting commodity-type brands, like Crisco and Oxydol, brands… — Greg Thain Copy Share Image
“Segmentation is really about meeting some needs very strongly, even at the expense of others, which a retailer cannot afford to do.… — Greg Thain Copy Share Image
“A similar situation exists for impulse categories that are mostly only considered if the consumer notices them. This is often the case… — Greg Thain Copy Share Image
“retailers use a master brand model, supporting one brand, the chain, whereas manufacturers primarily use a product brand model supporting a wide… — Greg Thain Copy Share Image
“Procter & Gamble, America’s largest FMCG company, announced the acquisition of Gillette. Both companies had decades of success developing technologically advanced products… — Greg Thain Copy Share Image
“New brands often gain sales through launch promotion, but find that repeat purchases dwindle, not through technical failure but through lack of… — Greg Thain Copy Share Image
“Price plays a larger role in the positioning of stores than it does in the positioning of brands. Price rarely provides a… — Greg Thain Copy Share Image
“Presence elasticity is higher for new products because manufacturers will be spending fortunes to encourage trial, and the interest and satisfaction that… — Greg Thain Copy Share Image
“When a manufacturer has supply issues and leaves a retailer out of stock, the impact on the retailer is greater than it… — Greg Thain Copy Share Image
“Generics were not created to be a differential advantage against other retailers but to help the retailer control the manufacturer, and they… — Greg Thain Copy Share Image
“Marketing aims/image: A retailer that has positioning aims (e.g. trying to improve its image with respect to healthy food or trying to upstage wholesaler… — Greg Thain Copy Share
“Every dominant brand (such as those listed in Table 5.1) has had to reinvest in mindspace every year to keep its position. However, things… — Greg Thain Copy Share
“consolidation, coupled with a desire among the survivors to restore normal profit levels, helps to usher in an era of orderly competition based on… — Greg Thain Copy Share
“If the manufacturer can convince the retailer that delisting will hurt consumer satisfaction and possibly lead to store switching, then that will be second… — Greg Thain Copy Share
“As retailers have become competitors of manufacturers in many product categories, they reserve more shelfspace for their private label brands and dominate advertising spending… — Greg Thain Copy Share
“High fixed costs mean that high volumes are an ever-essential objective. One” — Greg Thain Copy Share
“Importance of price: Price is imperative for FMCG retailers, much more so than for manufacturers. Retailers must constantly keep their real prices competitive and put… — Greg Thain Copy Share
“Hoping to create a little prestige, some retailers develop and advertise premium clothes sub-brands. In 2006, Myer, one of Australia’s largest retailers, launched a… — Greg Thain Copy Share
“The shift of power to retailers is not an inevitable phenomenon: technological changes and associated innovative ideas have been instrumental in moving power and… — Greg Thain Copy Share
“Because retail brands are barely differentiated, they are relatively fragile when compared to the largest manufacturer brands, despite having, in general, much higher awareness… — Greg Thain Copy Share
“There are some FMCG categories where retailers are destined to control mindspace. These are the low-technology, low-image, low-novelty areas. Retailers are likely to be… — Greg Thain Copy Share
“In markets where consumers are sensitive to quality differences (e.g. washing powder, instant coffee, sanitary protection) the share for generics and copycats usually plateaus… — Greg Thain Copy Share
“Direct consumer contact is an advantage for retailers, as 70% of shoppers make purchase decisions in stores and are thus open to last-minute persuasion. The” — Greg Thain Copy Share
“Fresh produce and other ‘destination’ products can create a sustainable differential advantage, as they have the potential for deciding the destination of the shopper.… — Greg Thain Copy Share
“PRIVATE LABEL IS booming. In Europe and the United States during the period 2000–2010, private label was responsible for the majority of the growth… — Greg Thain Copy Share