Deloitte Export Hub “Why is it so necessary to understand your potential clients?
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Bayer is decision maker • Buyer is not a customer but understands customer’s needs. Buying is not shopping. • Buyer competes with other retail specialists, understands and develops unique advantages. • Buyer holds and promotes corporate values and chooses each product in accordance with them. • Selecting a product buyer makes a choice about future sales, profits, corporate image, etc. • Selecting a partner buyer makes a choice about future success of his category performance.
Will I succeed with this supplier? Is this supplier reliable? Do we share same values? Is he ready to change? Does he aim to win-win result? Do I trust him?
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Product Selection Criteria • Quality - ingredients, their origin, production technology, shelf life, additional benefits (suitable for particular diet, natural, organic, sustainable, enriched, kosher, etc.), guaranty, risk of claims. • Quality standards and safety certificates • Organoleptics - color, aroma, taste, texture, clearness, matching consumer's preferences. • Packaging - appearance, size, clear naming, clear product info, storing convenience, convenience after opening, suitability for layout and merchandising, ability for utilization, sustainability. • Innovation and uniqueness. • Price - does it corresponds to retailer's price policy, is it the best price on the market, value for money? • Marketing - what is marketing contribution? • Sales forecast - how much I can sell? how much will I gain? (margin, customer turnover) • Image - will it make my shelf more attractive? will it help to build the right
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image?
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Partner Selection Criteria • Reliability - financial stability, business growth. • Proactive mindset, integrity, and transparency. • Readiness for a win-win business relationship. • Highest criteria of product quality and safety. • Innovative production technology. • Flexibility in technology, product ingredients, taste, packaging, marketing. • Accordance to logistic requirements. • Do I negotiate with decision maker? Is the supplier’s decision-making process clear?
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Category Role
• Destination category is critical for the key customer. Usually, has wide and deep assortment. A category in which retailer perceived as a market leader. • Preferred category is a category of essential goods which customers regularly buy in a significant amount. Price as a primary competitive advantage. • Convenience category has a moderate importance for the customer, is necessary for one-stop shopping. Regular prices and average margins. • Seasonal category shows seasonal peak sales
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Finding New Place in the Category
Take your TOP 10 products and match them to Retailer needs
Define the gaps on the Retailer shelf and match them with your assortment
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Store Visit - Critical Source of Information • General impression – look and feel. • Who is the main customer? Customer groups? Age? Income? How much time do customers spend in the store? • Which role plays the category for the retailer? • Price policy in the category. It depends on the general marketing strategy and particular category role. • Promotional activity - quantity of promotions at the moment, type of promotions, discount
level.
• Own brand importance and its price positioning. • Core brand in the category (benchmark).
Who is my competitor? Where is my place on this shelf? Which product can be replaced by mine and why? What are my competitive advantages on this particular shelf? © 2018 Limited Liability Company “Deloitte & Touche”
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Sample: info on single retailer target
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POS Research Point of sale
• It is recommended to invest in POS data to understand the category dynamics in each market. This way, an analysis can be made to establish potential (total market and per retailer), market leaders and followers, strong and weak competitors, distribution levels, etc. • In order to break into a certain category, data analysis is crucial in preparing a business offer to a retailer. • When listed, a periodic purchase of scanning data is recommended to follow performance and category developments. Top line Nielsen scanning data starts at a rate of Euro 2.500 and increases when more in-depth data is required. © 2018 Limited Liability Company “Deloitte & Touche”
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Product Range (Example)
• No own brand in 4 sub-categories • No best price in 3 sub-categories • Just 1 brand presented in beer mixes © 2018 Limited Liability Company “Deloitte & Touche”
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Product Range
Width and Depth
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SubCategories
Price and Promotion
Innovation
Leader, Follower, Own brand, Best price, etc.
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Checklist • Product is understandable for local consumers. • Product fits quality criteria of retailer • Product is one of my best sellers • Product is innovative/traditional/organic/has health benefits (or other clear differentiation) • Product is competitive (compare with market leaders) • I can offer the best price/quality balance • Product is strategic for my company and will not be changed or discontinued in coming months.
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Step by Step Preparation • Make a research about the potential client - online, market data providers, store visit, etc. • Study retailer’s assortment, your product range and choose the strongest product. • Find all possible points of common interest. • Build you own vision of your product place and strategy on the retailer’s shelf. • Prepare to sell this concept to your potential partner.
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Meeting with Buyer • Tell the company story - frankly, transparently, passionately. • Show the deep understanding of your strategy, production, and product
itself
• Present the product properly – samples • Present the product advantages for consumer • …and for the retailer • Show your flexibility and readiness to change • Know your next steps
Be prepared for decision making!
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Vienna Trade Fair 2017
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Rewe Group “Ukraine Supplier Day” 2018
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Go Global with Rewe event in Kyiv 2018
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Consumer preferences in Austria • Preference for high quality foods • Sales of organic products account for about 7 percent of retail sales (highest in EU) • The traditional Austrian diet is rich and based
on meat, flour, and vegetables.
• Cakes and bakery products are important parts of the
diet.
• Increasing interest in healthy lifestyles • GMO food products have a very negative image among the Austrian
public.
• High awareness of environmental issues (“Pro Planet” brand in REWE) • Urban population growing, which boosts demand for international food • Cheese consumption, which is already high, continues to rise. This is particularly true for semi-hard and fresh cheeses. • With fruit juices, tartness (higher acidity) is preferred over sweeter
products.
• Jams and marmalade are more appealing to Austrians if fruit pieces are included and if they are not too sweet. • Cereals sell better if they are crunchy. *Exporter Guide Austria 2016 by USDA Foreign Agricultural service © 2018 Limited Liability Company “Deloitte & Touche”
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Consumer research Data tracked
•
Household composition
•
Social class
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Buying habits/ trends
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Cooking habits
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Eating habits
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Taste preferences
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Health & Wellbeing
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Social conscience
•
Internet habits
•
Use of labels
•
Buying local
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