“To get the most benefit from a segmentation strategy, marketers must focus on why consumers buy, not what they buy or who… — Greg Thain Copy Share Image
“Understanding consumer attitudes and behaviour in a category is an asset of the manufacturer and a source of power in the battle… — Greg Thain Copy Share Image
“Where the shopper’s appetite for variety, choice and novelty are greater, the specialisation of manufacturers into product categories gives them the critical… — Greg Thain Copy Share Image
“The common approach for manufacturers to the art of segmentation is to slice and dice a large target market into subgroups of… — Greg Thain Copy Share Image
“Based on our research, anything less than 1000 SKUs or more than 40 000 in a store can present more negatives than positives… — Greg Thain Copy Share Image
“Retailers want brands to be interchangeable and thus substitutable; otherwise, they are weakened in negotiations if the brand is so unique and… — Greg Thain Copy Share Image
“In contrast, a manufacturer will usually make better margins on its biggest products and be constantly looking to rationalise its tail of… — Greg Thain Copy Share Image
“A manufacturer taking a category-based view understands the role of the category within different chains and store formats, as different retailers have… — 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
“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
“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
“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
“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
“These fundamental differences in financial structure affect the way retailers think and operate, which is a source of friction between them and… — Greg Thain Copy Share Image
“Price-matching tactics can also curb the price-cutting zeal of the competition and restore order and profits. In one example, Big Star, a… — 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
“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
“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
“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
“retailers can sometimes focus on their competition so much that they are often less astute when buying (i.e. their competitive effort is… — Greg Thain Copy Share Image
“Two changes have weakened manufacturers’ hold over shelfspace. Independent stores, who were heavily influenced by the manufacturers, have declined dramatically in the… — Greg Thain Copy Share Image
“shoppers were choosing on the basis of price alone – the brands were completely substitutable. To escape this death spiral, P&G decided… — Greg Thain Copy Share Image
“Consumers can now scan the code on the product when they are running low, and it will be ordered and delivered within… — Greg Thain Copy Share Image
“The benefit of the retailer master brand model is that $202 million is a colossal amount of advertising for one brand in… — Greg Thain Copy Share Image
“Shelfspace, number of facings, position, local promotion, advertising, information from scanning data and choice of new products are all key assets for… — Greg Thain Copy Share Image
“If you want to open a car repair business, you can build awareness and trust through local advertising and word of mouth,… — Greg Thain Copy Share Image
“One retailer told us that, as a rule of thumb, sales of a brand will be reduced by two-thirds if it is… — Greg Thain Copy Share Image
“While much has changed over time in the relationship between retailers and manufacturers, one thing that has not changed is that they… — Greg Thain Copy Share Image
“PRIVATE LABEL IS booming. In Europe and the United States during the period 2000–2010, private label was responsible for the majority of… — Greg Thain Copy Share Image
“Two brands of toothpaste can sell alongside each other on a shelf, and consolidating them into one brand would make few savings… — Greg Thain Copy Share Image
“Trying to win mindspace from established brands in low-interest product fields simply by communicating to the consumer is a hit-and-miss affair, to… — Greg Thain Copy Share Image
“Although private label shoppers benefit from not having to pay for flashy advertising, private labels miss out on a key brand role:… — Greg Thain Copy Share Image
“Enrolling card holders gives a retailer the chance to find out more about its customer base (where they live, family composition, family… — Greg Thain Copy Share Image
“if management is under pressure to deliver profits in the short term, quick-response promotions are a more attractive investment than design improvements.… — Greg Thain Copy Share Image
“Retailers have to generate increased sales in each location to justify the investment, and every manufacturer has to demonstrate how their brands… — Greg Thain Copy Share Image
“In addition to price and terms of payment, the retailer faces a number of non-price costs. All the actions from loading delivery… — Greg Thain Copy Share Image
“manufacturers do play a role in category planning because they can synthesise their experiences across the different chains they serve, both nationally… — Greg Thain Copy Share Image
“Smaller players, who recognise they cannot call themselves category captains, have to take a different approach. Some of them aim to have… — Greg Thain Copy Share Image
“Maximise efficiency by limiting and simplifying the range of products handled: This objective usually works against the other objectives, but limiting customers… — 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
