De-positioning the competition off the shelf
The article in the WSJ Retailers Cut Back on Variety, Once the Spice of Marketing (dated June 26th, 2009) speaks to one of the most important shifts sweeping the consumer packaged goods industry today. And this trend is not just limited to the CPG industry but applies to many other industries as well in which cash-strapped retailers are cutting inventories sharply.
We believe this places an even larger imperative for companies to develop their market share winning strategies. In many cases, marketers have no choice. They have to either de-position their competition off the shelves or they may find the same being done to them. For many #1 brands this presents an opportunity to eliminate small, slower-moving competitive SKU’s off the shelf thereby adding share points to their leading brands. In the case of #2 and #3 brands, they have to develop a strong shopper-centric rationale for retention of their shelf space. What marketers need is an in-depth understanding of the shifts in shopper attitudes and behaviors and a clear strategy on how to capitalize on that shift that will benefit them as well as the retailer. With this story, articulated from a retailer’s perspective and using retailer-specific metrics, manufacturer’s can then build a case for protecting and growing the category at the retail account. The timing on such an initiative could not be more urgent. Not only is the future growth of many companies in jeopardy but also the threat to current share and profitability.
