Are you ready to sell your product to retail?

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

How to build lasting brand relationships in a digital-connection culture

Digital communication continues to change relationships – with people and brands.  

How people engage with communication differs for Millennials, Generation X, and Baby Boomers.  Do you use your phone to tweet, Snapchat, text, post, email, or call?  Communication is now less face-to-face; it is more device-to-device. If person-to-person communication has become this diverse, how is your brand communicating?  How is it engaging people?  How are you developing lasting brand relationships?

The world is moving to a digital-connection culture.  People connect with more online friends, followers, colleagues and contacts than they connect with people they know in person.  We know far more about the likes and beliefs of online friends than we do with the people we work with each day.  Friends of friends may want to add you as their friend, or they may follow you, but they may never meet you in person.  More and more, we are moving from live, personal relationships to a digital-connection culture. 

In a world where the number of digital relationships increases faster than live ones, brand referrals are changing. Seeing that a friend “likes” a brand is less likely to influence you than spending time together talking about a brand.  Multiple research studies show that people trust friends and family for brand referrals much more than brand advertising.  How consumers learn about brands from digital friends will continue to evolve.  As communication evolves, brands will need to identify new ways to connect, gain trust and build relationships.  Brand teams must find new ways to engage consumers directly.

Beyond digital advertising and story telling

The advertising world continues to evolve.  The world of digital has continued to fragment advertising options.  You can buy digital ads any number of ways, but often the click through and conversion rates can be very low.  If you are a big company, with big budgets, you can afford to analyze “big data” to find the big trends and targeting data.  For organizations that are not as “big”, a different approach is needed. 

This is one reason many organizations are moving from an advertising strategy to a story telling or content strategy.  People do not want to be “talked at” by brands.  They value brands that understand them.  They value brands that:

• Are authentic
• Listen to me
• Understand me
• Make my life better
• Share information that is helpful to me
• Develop a valued relationship with me

Brands developing a content or story telling strategy are off to a great start.  But how we develop that content or stories can make a difference.  Telling stories is not enough.  Telling stories alone is one-way communication. We need to communicate our stories and content in an interactive way that builds brand relationships. 

Developing lasting interpersonal relationships takes both listening and sharing of stories and experiences.  If we want to develop relationships with consumers, it is helpful to

• Understand what your consumers want and need
• Ask for and listen to their feedback
• Share stories of how your brand has delighted others like them
• Share stories on how the brand could help them
• Ensure your content is relevant and helpful so consumers will take time to engage

How can your brand develop relationships in this connection culture?

Let me suggest a different way to think about communicating with your target consumer.  We know that to be an effective marketer, you have to know who your target consumer is and what do they want/need from you.  If you want to be effective in developing relationships in the digital world, you will need to connect in a way that will develop experience and trust with your target consumers.  Consumers are using Match.com and other services to find an ideal mate.  Help them find their brand match by sharing with them the right things about your brand.

If you want to start a relationship with someone you meet, there are steps to do that.  I believe these same steps can be applied to build a dating relationship between your brand and your target consumers.  So…if you were to approach new consumers as you would a dating relationship, what might that look like?

Be prepared to answer these questions

Here are some of the questions that your target consumer will go through in any new brand relationship – either consciously or not.  If you prepare to provide relevant content and stories for the early interactions (or “dates”) in your relationship, you will be more successful in creating brand connections and relationships.  The following questions are familiar in any new relationship.  How and where does your brand provide the answers to these questions today?

• Who are you? Who is your brand, what does it stand for, what does it offer, why is it unique?
• Do you understand me? Does your communication to current and target consumers show that you understand who they are, what they want and need and what is important to them?
• Why are you the right one for me? In a world of many choices, why should your brand come into their life? What do you have to offer that others do not? Do you satisfy their wants and needs? Is your brand worth the time and money a consumer invests in you?
• Why should I trust you? Give them reasons to believe and trust you.  Is your communication and content believable?  Do you consistently deliver what you promise?
• Do I want to be seen with you? Do they feel good when others see them use your brand or are they embarrassed?
• Does being with you truly make my life better? After time together, does your brand truly make an ongoing or lasting difference in your consumer’s life?  Do you at least make their a little better?  Can you become a brand they do not want to live without?
• Am I ready to have a long-term relationship with you?  Do you provide a solution that fits well into your consumers’ lives?  Can they stop searching for a solution and bring you into their life for years.  Answering the questions above will help answer this question.

This approach may seem silly, but if you can get consumers to engage in your brand and believe that you deliver well against all of these questions, it is likely that you will develop loyal customers.

Enhance current customer relationships and create new ones

Start with making sure you have the right target consumer.  Just as some people are a better fit for a relationship with another.  Your brand will be the right fit for the right target.  No brand is the perfect fit for everyone.  Know who you fit with and why.  Strengthen your relationship with customers who fit and reach out to new consumers who fit your “ideal consumer” profile. 

Create and distribute your communication and content in places that your target consumer is likely to frequent.  You don’t hang out in a bar if the type of person you want to date does not go to bars. Don’t spend a lot of time and money to advertise or distribute content in places where your target is not.

Ensure your communication and online content strategy is relevant by addressing the relationship questions above.  You will start to attract and engage new consumers.  Over time you will build lasting relationships with your current customers, target consumers and perhaps event their followers, friends and fans.

This blog was originally posted by GrowthSpring Group on the MENG Blend website.

GrowthSpring Group is a unique strategic growth and marketing innovation firm that helps clients accelerate sales and profit growth. We help you identify and implement new business insights, opportunities, winning strategies and plans.  www.GrowthSpringGroup.com

Do You Know Where Your Marketing Funnel Is Leaking – And How To Stop It?

Your sales and marketing funnel can be like a pair of pants with a hole in the pocket.  You don’t notice the hole at first.  You notice it, however, when you start losing things out the hole, like small coins.  While you hate to lose any money, it gets really frustrating (and more costly) when the hole grows large enough that you lose your keys or something else really valuable.

Putting your budget dollars into a leaky sales and marketing funnel is very much like putting money in a pocket with a hole in it.  You will inevitably lose some of your money, but you may not know how much.

Finding Those Sales and Marketing Funnel Leaks

The problem is all sales and marketing funnels leak.  Whether you are marketing for B2B sales leads, selling consumer products in store or online, driving diners to a restaurant, or recruiting new students to your university, your marketing and sales funnel is leaking.  The leaks in your marketing funnel cost you money—and potential customers.  The good news is that if you know where it’s leaking, you can take appropriate steps to help stop the leaks or at least minimize their impact.

A thorough analysis of your marketing and sales analytics can reveal where your funnel is leaking.  The first challenge is to find and understand the leaks.  The next challenge is to identify how to stop or reduce the leaks.  How many people who see your ads and read your emails actually visit your store or website?  How many of those who reach your website ask for information or make a purchase?  How many people leave a store without buying what they came in to buy?  It’s critically important to know what is and is not working within each step of your marketing and selling funnel.  More importantly, you need to understand how your customers are making decisions at each step in their purchase decision journey.

It is critical to understand your sales and marketing funnel and your customers’ purchase decision process in order to optimize your market effectiveness and marketing ROI. 

• You need to identify your Points of Loss (POL)—where you are losing people at each step in your funnel.

• You also need to understand your Points of Influence (POI)—the key points in the decision process where you can win or lose the engagement of your potential customers as they move towards making a purchase decision.  These are the points in the decision process where your potential customers seek information on what they want to buy.  You need to understand what these POI’s are and who/what is influencing them at each one. 

POL’s and POI’s are your key leverage points in making your marketing and sales process much more productive. 

Adding More Sales Productivity to Your Marketing Funnel

There are three key ways to build sales productivity in your current marketing and selling funnel:

• Put more total people in the funnel.  Your funnel still leaks, but more people in should mean more people out.  If only 1-5% of the people at the top of your funnel actually buy from you or sign up for your services, you need to first focus on improving your funnel rather than putting more people into it.

• Put more of the right people in the funnel.  You hope to attract and sell more of your target audience.  But, if you don’t clearly understand why they are choosing you, this approach will not be fully effective.

• Retain more of the right people in the funnel.  By slowing or stopping the leaks in your funnel, you will optimize your efforts to attract and retain more target customers.  This is usually a much more productive near-term effort versus just spending more on ads or offering promotions.

Our work with clients shows that the leaks in a funnel can happen for very different reasons.  Some can be as simple as the wrong web link was attached to an ad or email, sending the right person to the wrong place on your website.  They don’t find what they want, get frustrated, and leave your website.

Other leaks come from only communicating the features of a product or service but not the most relevant benefits.  Often, a leak comes from not providing the key information a target customer wants to learn prior to deciding where to shop and what to buy.  While these leaks sound like marketing fundamentals, they happen frequently in different stages of marketing funnels.

Shoppers stay in the funnels that best fit their shopping process and POI’s.  Companies who best understand how their customers shop and make purchase decisions and can align their marketing funnel with customer information needs will boost their funnel productivity, sales, and marketing ROI.  If your competition understands your customers’ shopping and decision process better than you do, your marketing funnel will become less effective and you will lose share to your competitors.

Unfortunately, today’s lean marketing and very busy staffs often don’t have enough time to invest in understanding their Points of Loss and Points of Influence.  Whether your internal team does this work or you get outside help, your marketing will be much more productive if you take time to understand why each of your key marketing initiatives may or may not be working effectively in your marketing funnel process.

Are programs ineffective because your funnel process is leaking or are you just not effectively engaging your target customers?  Once you better understand your Points of Loss (POL) and your Points of Influence (POI), you can more effectively focus your efforts and marketing investments in the right place.  Once your sales and marketing funnel works well and you know how to best engage and sell your target customer, you will accelerate your market success!

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This blog was originally posted by GrowthSpring Group on the MENG Blend website.

GrowthSpring Group is a unique strategic growth and marketing innovation firm that helps clients accelerate sales and profit growth. We help you identify and implement new business insights, opportunities, winning strategies and plans. 

www.GrowthSpringGroup.com