Keep It Simple – Make it Clear
It became evident at a recent seminar hosted by distributor J. T. Davenport that manufacturers are not communicating the importance and effectiveness of displays and other merchandising vehicles very well. It was interesting that many of the retailers present, although generally in favor of off-shelf displays, weren’t quite sure whether they really ‘worked’ or not. There was also the impression that floor displays were ‘only’ for special promotions.
I know there’s great research available that
shows the effectiveness and best uses of displays and other ways of
merchandising, and I encourage manufacturers to share that information on a
regular basis with the retail and wholesale community. Providing the tools
for success is absolutely essential.
Manufacturers also are investing more money in the
point-of-purchase materials than ever before, so it just makes sense to
communicate the effectiveness of what is available and to communicate
clearly and frequently why retailers should be enthusiastic about using
what’s offered.
Displays and other materials destined for use at retail
must be user-friendly. As one retailer commented,
“Manufacturers need to know that most of us are not origami
experts.” Point taken.
Shopping vs. buying
One of the sessions at the National Confectioners Association State of the Industry Conference in
early March will be titled, “Where Are Consumers Shopping for
Confectionery and Why?” It’s a good question, especially
because I’m one of the panelists for that session! Your input and
thoughts would be appreciated.
Consumers buy candy in many locations. But where do
they ‘shop’ for confectionery i.e. as a destination? At retail
confectioners’ shops — where much of the product sold is made
right on site, you can smell the chocolate when you walk in and it’s
difficult to leave empty-handed. Such shops have a distinct advantage as a
destination for confectionery buying. They are also the ideal place to shop
for gifts. Unfortunately, not every neighborhood has a local confectionery
store.
Looking forward
Chocolate will still be very hot in 2007.
Consumers are becoming connoisseurs of chocolate, so make the most of the
trend. The dark, organic, single-origin, high cocoa content products will
be available from even more manufacturers.
It’s time for non-chocolate manufacturers
to do a better job of taking advantage of the premium trend. There’s
room at the top in the category. It’s really isn’t just about
price.
‘Added Value’ products will be a
growth category. Energy, calcium, vitamin C and more will increasingly show
up in candy and gum products. ‘Energy’ is on its way to
becoming a major category, and gum and candy won’t be left out.
There will be some truly ‘new’
products from major manufacturers — as opposed to just line
extensions and leveraging of brand equity.
There’s room at the top for
self-consumption luxury items. Great products don’t need to be for
gifting. Ferrero and Lindt have proven that. Consumers want affordable
luxury. Let’s give it to them.
Do stay alert. Manufacturers can take nothing for
granted. Retailers need to crunch the numbers well and be sure they know
their customer base. The importance of justifying and proving the value of
the confectionery and gum categories is ongoing. There are other categories
looking to take over shelf space (smokeless tobacco in convenience stores,
for example), so pay attention.
Best wishes for a Happy New
Year and a successful 2007.