Candy Merchandising 101: Pay Attention!
Mary Ellen Kuhn
We’ve all heard the admonition,
“Don’t sweat the small stuff.” As a guiding principle for
life, I’m inclined to agree with this recommendation. Life is way too
short to let a dented fender, computer crash, or a bad cup of coffee ruin
one’s day (a fact that I fervently hope to remember the next time
such a calamity does indeed befall me).
When it comes to merchandising the candy category,
however, this advice just doesn’t cut it. Effective candy
merchandising is all about sweating the small stuff! And what better time
to home in on that reality than in our annual Candy Category Handbook
issue, Confectioner’s once-a-year, category-by-category focus on
“Candy Marketing and Merchandising 101.” In that spirit, some
back-to-basics recommendations follow.
Plan-o-gram it! The first syllable in this word says
so much. Whatever the class of trade, it’s critical to calculate the
best-selling, most profitable items and to develop a shelf-by-shelf plan for
positioning them most effectively in the store. Plan-o-grams should not be
limited to the candy gondola; they can be invaluable at the front end and
in the seasonal aisle as well. Needless to say, keep the plan-o-grams
contemporary and ensure that resets are done on time.
Control out-of-stocks. As an industry, we place
so much emphasis on developing creative new products and generating
incremental sales via great promotions, but what about all the sales that
are lost to out-of-stocks? It’s hard to come by statistics for the
candy business, but the loss to the consumer packaged goods industry has
been calculated at $6 billion annually.
To that end, don’t automatically assume that
automatic replenishment is getting it right. It’s a valuable
retailing tool, but certainly not error-proof. Front-end merchandising
expert Cameron Cloeter of Impulse Marketing Co., Long Valley, N.J., points
out that automatic replenishment tends to work better with slower-moving
SKUs. In a busy front-end environment with multiple checkouts, the
likelihood of errors in controlling out-of-stocks/managing inventory
increases dramatically. So much so, Cloeter reports, that some retailers
are discontinuing the use of automatic replenishment at the front end. So
monitor this closely.
Take a field trip. True, it’s hard to find
the time for store checks, but there’s no substitute for watching the
consumer where she shops. And a store visit also provides a great
opportunity to assess store-level execution of programs planned at
headquarters, not to mention getting some input from the front lines of
retailing.
Here’s the bottom line. Doing a great job with
the candy category in the store requires attention to detail. A lot of it!
It’s not always easy or fun, but for those who seek to earn an A+ in
“Candy Merchandising 101,” it’s a course requirement.