The benefits of a strong collaborative manufacturer/retailer relationship

Selling in the natural channel means wanting more; greater transparency, simple easy to read and understand labeling, high quality ingredients, a commitment to fair trade, a high degree of integrity in the way we conduct ourselves, and a commitment to sustainability. 

The level of innovation and creativity that companies put into their brands, their packaging, the company name, and the products they sell is impressive. The harsh reality is that consumers won’t buy what they can’t find. Companies need to put an equal amount of effort, passion, and enthusiasm toward their efforts with the retailer. 

This then begs the question why wouldn’t you put the same passion and energy into growing your business as you put into your products? 

Most companies say that they want more sales. While some companies don’t know where to find solutions, others make excuses like “It’s worked in the past” or “Everyone else is doing it this way”. 

If you continue doing what you’ve always done the results will always be the same. 

Are you happy with your sales growth? Do you have full distribution of all of your key items? Are you happy with the return you get for each promotion? If you can’t answer these questions with an emphatic yes then it’s time to re-think your go-to-market strategy. 

There are a lot of great resources available to help you. But not all resources are created equal. You would never ask someone earning $30,000 a year how to make $1 million. The same holds true for business. Use resources with proven track records of sustainable sales growth with proven brands. Look for resources that offer a different or unique perspective. You need to look beyond the one-size-fits all strategies and find an expert with a proven track record and with broad experience.   

The competitive landscape requires manufacturers and retailers to be more strategic as they work together. The old way of selling, relationship selling (retail buying decisions based on gut and friendships), is changing to a more fact-based selling approach (sales pitches that include basic facts about the category). 

The next logical evolution in the process is to become a category expert and to help educate the retailer on how to best grow sales and be competitive. This requires that manufacturers take a more active role in the retailer selling process. Retailers today need to understand category trends, who shops the category, why they shop the category, when they shop the category, and where they shop the category. Retailers need to develop assortment, pricing, and promotional strategies that encourage customers to shop their store. They need to know how to properly merchandise their categories. Consumers don’t like being forced to hunt for items. 

Consumers want convenience, quality products, knowledgeable and helpful store employees, categories that are easy to shop, fast checkouts, and a good value for the price. Manufacturers able to provide these valuable insights will gain a significant competitive advantage – one that the retailer will certainly reward. 

Empowering Brands | Raising The Bar

Don’t miss out on all of these FREE RESOURCES (strategic downloadable guides, podcast episodes, list of questions you need to know the answers to, weekly newsletter, articles, tips of the week, and online courses to learn how to get your brand on the shelf, expand distribution and understand what retailers REALLY want.

All tools that you can use, AT NO CHARGE TO YOU, to save you valuable time and money and grow your sales today!

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By |2018-12-05T09:49:14+00:00November 26th, 2018|Sales Funnel Magnification|

About the Author:

Daniel Lohman, CPSA is Strategic Advisor in the CPG and Organic Industry. His company, Category Management Solutions (CMS4CPG LLC), provides innovative ideas, actionable insights and strategic solutions for companies interested in gaining a significant competitive advantage. He assists companies in expanding their retail distribution and improving their merchandising. His extensive knowledge and expertise reaches far beyond traditional category management and has earned him recognition throughout the industry as an expert, speaker, trainer and thought leader. Daniel can be reached at Dan@CMS4CPG.com. Connect with me on LinkedIn.

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