Managing your retailers
- 1. PharmaSim MANAGING YOUR RETAILERS Consumer Product & Brand Management Marketing 3349
- 2. Push vs Pull Strategy Retailers are the focus of a Push strategy, bypassed in a Pull strategy Managing Your Retailers STRATEGY Manufacturer Consumer Retailer PULL PUSH
- 3. Managing Your Retailers WHAT RETAILERS DO FOR YOU Distribution Shelf Space Quantity Quality Retail Price Discounts Cooperative Advertising Displays
- 4. Managing Your Retailers RETAILER DIFFERENCES MEDIUM Most Grocery Most Chain Drug Some Mass Merch Medium orders Value turnover and allowances, some merchandising support LARGE Most Mass Merch Most Wholesale Some Grocery & Drug Larger orders Focus on turnover and allowances SMALL Most Independent Drug Most Convenience “ Mom and Pop” Grocery Smallest orders Value merchandising support
- 5. Managing Your Retailers MARKETING MIX Your marketing mix decisions affect retailers’ incentive to “push” your products Manufacturer PRICE PROMOTION Place Product Retailer Margins Merchandising Turnover Demand
- 6. Managing Your Retailers PRICE Suggested Retail Price – affects demand and retailer margins Volume Discount – affects retailer margins Promotional Allowance – performance includes price reduction
- 7. Managing Your Retailers TRADE PROMOTIONS Promotion Allowance Co-op Advertising Point of Purchase Promotional Spending Product Sales Co-op Ad? Promo Allowance? Point of Purchase?
- 8. Managing Your Retailers SALES FORCE Number and distribution of sales people affects retailer response Merchandisers are valued differentially by different retailers Detailers only affect retailers by stimulating demand Sales Force Channel Sales Distribution Channel B Distribution Channel A Merchandisers
- 9. Managing Your Retailers MEASURING SUCCESS Trade Rating - Product Promotion Report % Participation - Product Promotion Report Sales - Income Statement and Product Contribution Reports Income - Income Statement
- 10. Managing Your Retailers OTHER INFORMATION How are trade promotions affecting my costs? - Product Contribution Reports What are my competitiors doing? - Sales Force Report; Promotion Report; Operating Statistics How are my competitors doing? - Operating Statistics; Shelf Space Reports What are the distribution trends? - Channel Share Report; Marketing Update
- 11. Managing Your Retailers SUMMARY Marketing mix decisions affect not only consumers but retailers as well: Margins Merchandising Provide retailers with incentives to “push” your product to consumers Turnover Demand