Do you
have a product to sell to retail? If you
are a consumer products company, an inventor, an entrepreneur, one of your end
goals is to successfully sell your products into and through retail stores –
either brick and mortar or online. Whether
your goal is to sell your produce regionally, nationally or globally, you must
convince a buyer to stock your product.
Many
companies believe that a new product is so great that every retail buyer will
want their product. They may or may not
be right. I have talked with a number of
product developers who have a “If we build it, retailers will buy it”
attitude. If your company name is
Procter & Gamble, Nike, Apple, or Samsung, you are probably right. If your brand or company is not number one in
your market segment, you may have more challenges and competition to earn your
spot on the retail shelf. Mintel’s Global
New Product Database
currently adds over 20,000 new products a month, worldwide. Are you ready to
compete with these products for retail distribution?
I have
participated in many new product pitches, and have seen the sales presentations
for many others. Not all products
equally excite a retail buyer. But, even
a great product may not reach the shelf if the sell-in presentation does not
provide the needed information to meet the buyer’s needs. The following checklist should help you
prepare for your next new product presentation.
_____ Know your market – Shoppers, consumers and competitors. Know who buys products in your category and
why. Who are you targeting for your new
product? Who is the end consumer? Who are your future key competitors? Is it your own products or competitive
brands? If you have a product ready to
launch, all of these should be well known to you by now. Visit and audit stores to learn the market
and retailers.
_____ Know your value proposition – Know what is unique and valuable
about your product – to retailers, to their shoppers and to their end
consumers. Why does your product truly
belong on their retail shelves? What should
it replace? What data / insights can you
bring to back up that pitch? You will
need your reason for being (value proposition) and several supporting data points
to justify it (reasons to believe).
_____ Know your target retailers – First of all, learn whom you need to
sell to. Without their name, it will be
difficult to get an appointment. If it is a new buyer to you, can you get a
referral from someone you know? You will
need to know the retailer well. What is
important to them in the buying decision?
Learn everything you can before setting up an appointment. Make visits
to multiple stores before you pitch a retailer. How do they differentiate
themselves in the market? How do they
merchandise your category? What products
do they sell at what price? How do they
promote? Be prepared to talk about how your product will fit in their store.
_____ Show proof – Get quick wins early.
Success can accelerate if you can point to others already buying your
product. Create an early success story
with 1-2 retailers. Bring your story and
your numbers to prove your results to others.
Today, data sells new products more than relationships. Bring research and test market data to help
your sales pitch resonate.
_____ Where to sell – Don’t sell your largest target customer first, but
do not be afraid to sell to large customers early once you have a solid sales
story to tell.
_____ Bring a brand to sell, not just a product – Buyers and shoppers
connect with brands, not just products.
Be prepared to talk about your brand and your plans to build your brand
in the future.
_____ Intellectual property – Do not present your product before you have
protected your intellectual property.
Have you filed at least a provisional patent? Have you trademarked your
brand? Do not discuss your product or
brand before you are protected.
_____ Sell sheet – Your sell sheet is a front and back selling tool that
lists everything the buyer needs to know to buy your product from you. It should include:
· Brand logo
– establish the brand for this product
· Product photo – a great photo of what your product looks like inside and outside of
the package
· Product specifications – all product dimensions, packaging dimensions, product,
package and pallet weight, shipping configuration, boxes per case, cases per
pallet.
· Product availability date – when your product will be available to ship
· UPC code and case codes – for the retailer to enter into their system
· Merchandising information / suggestions – use a separate sheet if you are
offering pre-packed shippers
· Information on how to place the order – Are orders placed on your
website, through EDI, etc.?
· Company and contact information – to reach you after the meeting
· Marketing calendar – show your launch support – this can be on a different
sheet if room is needed for the above
_____ Product samples in finished retail packaging – Bring, and be
prepared to leave, product samples that are production samples that are ready
to sell. Buyers may express interest in
a prototype, but they place orders for finished product that is ready to
ship. This means final packaging and
product. Your commercial production line
may not yet be commissioned, but you cannot show one product and ship a
retailer something different once they order it.
_____ End-user Endorsements –
Test your product with target consumers.
Show the test results and quotes from consumers about what they like
about your product.
_____ Cost information – Be prepared with the wholesale cost to the
retailer, distributor costs if there is a distributor needed, and the
manufacturer’s suggested retail pricing (MSRP)
_____ Website / social media – Have your website ready to share in a
sell-in meeting. Social media can be
launched when new products are on the shelf, but be prepared to share your
digital marketing plan.
_____ Other marketing support – Reach out to media to see if you can get
some early PR support. If your marketing
budget is small, PR may be your best friend.
An in-store pre-packed shipper can also provide a second point of
distribution or a way to gain initial trial and sales before getting a
permanent spot on shelf. If you will be
supporting the launch with advertising or promotion, bring a marketing calendar
to show how you will be supporting the product in market.
_____ Make sure you are ready for success – Know how much volume you can
produce AND finance in the first year.
Many new companies fail from not being able to fulfill early large
orders. Others fail from not having the
finances lined up to cover costs while waiting to get paid for early orders.
_____ Attend the key trade shows – If you cannot get in to see all of the
key buyers or cannot afford to travel to many retailers, go where the key
buyers go. Do not waste money on trade
shows that are not important to your key buyers. Do your research. Know which trade shows are important to your
category buyers and for new product launches.
Buy a booth and prepare an engaging display to capture the attention of
potential buyers. Be ready to sell.
_____ Listen to feedback – Some buyers may give you good coaching and the
opportunity to come back with a revised product if they find your initial
product falls short of their needs. This
feedback may open opportunities for a revised product and provide ideas for
product improvements to create version 2.0.
In short,
do your homework and be prepared before you make the sales appointment. You often get only one chance to sell a new
product into a retailer. Hopefully this
list will help you get ready to sell your product to retail.
This
blog was originally posted by GrowthSpring Group on the MENG Blend website.
David Lund is the founder and president of GrowthSpring Group – a unique a strategic growth and marketing innovation firm that works with clients to accelerate success by helping them identify and launch new growth initiatives. www.GrowthSpringGroup.com
David Lund is the founder and president of GrowthSpring Group – a unique a strategic growth and marketing innovation firm that works with clients to accelerate success by helping them identify and launch new growth initiatives. www.GrowthSpringGroup.com