Rn june shs interview

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Retail News Interview

Breaking Brands

David O’Neill, Managing Director, SHS Sales & Marketing Ireland, discusses the buoyancy of the FMCG sector, the importance of brands to Irish consumers and the various elements needed to ‘break’ a brand in Ireland.

SHS Sales & Marketing Ireland has more than 35 years’ experience of growing brands across a range of categories. Through the harsh trading conditions of the last five years, they have remained a dominant player in the delivery of outsourcing, sales, distribution, and business support services. Indeed, more and more businesses are turning to companies like SHS to gain an edge and capitalise on their channel expertise and proven ability to improve brand performance.

David O’Neill, MD, SHS Sales & Marketing Ireland, discusses some of the big issues facing Ireland’s FMCG market in 2014 and beyond.

Do you think that the Government is doing enough in terms of helping Ireland’s FMCG market?

The sector can be impacted upon by such a wide range of government policies or by various taxes, depending on the nature of the product and where it is being produced, stored and packaged; even how it is being transported and the extent of the distribution network that is being utilised will have an impact. What I can say is that Government is aware of the scale of the FMCG market; there are individuals and organisations directly linked with the FMCG sector who are regularly lobbying elected representatives on a wide variety of issues, to ensure that policies take account of the challenges within the sector.

Have we bottomed out? Are we starting to see a resurgent FMCG market? Why do you think this is?

There is no doubt Irish consumers are becoming more shrewd in their shopping habits but the sector is buoyant. With convenience buying, for example, shoppers are no longer simply top-up shopping. They expect to see leading brands across all store formats and at competitive price points. This trend has prompted retailers and suppliers alike to revisit how they can maximise value and develop promotions which satisfy bargain hunters, without impacting heavily on already tight margins such as ‘Big Night In’.

The rise of discounter stores in Ireland has also increased the pressure. Aldi and Lidl, for example, now control over 15% share of the Irish market, more than twice their share of the UK market, according to Kantar data. The reality is that local brand owners and distributors have not yet forged the same trading relationships with these accounts and in many instances are likely to find it difficult to do so.

How can we improve consumer confidence to ensure Irish consumers start to spend again?

Although there are signs that the economy is in recovery, continued instability is driving consumer spend into discounters such as Aldi, with shopper behaviour towards

‘deal-hunting’ becoming the norm.

In parallel to this, shoppers are increasingly demanding ‘value’, which isn’t necessarily just about price, but also about accessing the brands and pack sizes shoppers wish to purchase when they want to buy them. However, where retailers are able to offer value and service for customers, these trends are having a positive impact on the convenience channel, which has seen growth in the last year. This growth is anticipated to continue.

The SHS Group has been in business since 1975, so presumably your longevity stands you in good stead when dealing with the inevitable ups and downs of the market?

The art of good business, it is said, is to be a good middleman. While that may ring true for others, the SHS Group has rewritten the rulebook for getting top brands into the hands of eager consumers. Founded in 1975, the Belfast-based firm set out its ambition from day one to become a major player in the FMCG market. A string of deals with some major brands such as Colgate-Palmolive and Jordans Cereals quickly underlined the sales and marketing company’s potential to be much more than a middle cog between the producers and end-users.

Today, the SHS Group commands a turnover in the region of £400m; employs more than 700 staff across the UK and Ireland and enjoys regular placing on The Sunday Times Fast

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Retail News Interview Track list of top performing companies, all achieved while remaining a family owned business with its roots firmly in Belfast.

What advantages does being part of the SHS Group bring to your business?

Being part of a Group that is both a brand owner and sales & marketing specialist gives SHS Sales & Marketing a unique perspective, particularly in recognising and adapting to changing trends. Buyers and brand owners recognise the value of the unique service and solutions that we provide and how we can help forge relationships with key decision-makers and generate reliable market insight.

What does SHS offer clients that sets it apart from competitors?

In tough times, brand owners are working harder to secure shelf space and deliver greater value in already

“Whether you believe we are seeing the green shoots of recovery or that the worst is still to come, brands with a great story to tell and who continue to invest in the Irish FMCG sector through tough times will always emerge the stronger.” competitive channels. To gain an edge, many are collaborating with specialists such as SHS Sales & Marketing Ireland, which provides outsourcing, sales, distribution and business support. We not only allow brands to tap into our wealth of resources and experience, but also to access established relationships with buyers and retailers. SHS Sales & Marketing are also able to utilise our business support expertise to manage all the functional elements, such as finance and credit control, to ensure excellent customer service. Our strategy relies on a deep understanding of consumer

trends and ensuring brand visibility is fully optimised with effective instore ranging, merchandising and compliance checking.

We carefully evaluate market changes and shifts and respond strongly to position brands in the right way and in the right places so they reach their target audiences.

We know the pressures in the FMCG sector.

That’s why we invest time, working closely with brand owners in developing bespoke solutions that generate results and value for money.

Considering the growth of private label in the last few years, can brands be brought SHS Sales & Marketing manages a wide portfolio of brands including Bottlegreen, which is owned by its parent company. back to a position of make your business more efficient and real strength in the keep you informed of key promotions, market? in order to stay competitive and drive Private label will always have a place sales. Keeping your brand visible onin the consumer’s basket but equally, shelf in the multiples and convenience brands will continue to grow from stores around the country takes time strength to strength, driven primarily and effort and many brands simply through the high levels of investment don’t have the capabilities to achieve carried our by the brand owners to this. Many brand owners choose to ensure the consumer is receiving a collaborate with sales and marketing quality trusted brand at a fair price specialists to outsource their sales, SHS Sales & Marketing manages a wide portfolio of brands in the household, healthcare, grocery, soft drinks and alcohol categories – including brands owned by its parent company such as WKD, Shloer, Bottlegreen and Cara matches. It is also one of the few Irish companies that can offer a full British Isles solution, enabling brands to grow across markets rather than just within categories and channels. The company’s strong performance in Ireland has seen it grow its portfolio of well-known client brands, including Askeys, Cricket, Deep Heat, J&J, Jordans, Juvela, Mars Consumer Drinks, Orangina, Snapple, Ryvita, Savlon, Tommee Tippee, Twinings and many more.

What is involved in breaking a brand in the Irish market?

Looking at the Irish FMCG sector, the market is highly fragmented. Building a relationship with a professional distribution and marketing agency such as SHS Sales & Marketing can

The incredibly popular Cara matches from Maguire & Paterson, an important part of the SHS Sales & Marketing brand family.

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Retail News Interview distribution and marketing functions to a company that has the experience of dealing with similar brands in a changing marketplace.

Is advertising still as important as it has been traditionally in reaching consumers? Why? Advertising undoubtedly has an important role to play in reaching consumers but it is only one part of the marketing mix. Effective marketing strategies are underpinned by a great brand story that can be told across many platforms.

How big a role does/can the internet play in marketing a brand to consumers?

Online retailing is a growing channel and brands need to fully maximise the opportunities the internet offers for them. There has also been a growing recognition of the impact which social media can have on marketing a brand – though brands are very conscious of the need to ensure that the marketing tool is purpose fit for the channel. Material developed for one channel may not always be appropriate for another. We believe in communications planned and executed in such a way that a brand’s story is told simultaneously and seamlessly

through digital and traditional channels.

How crucial is the relationship with retailers?

The key benefit for any brand in working with a sales and marketing agency is in gaining access to front line sales, along with channel and commercial expertise that has been developed from working across a variety of categories and customers.

From a customer’s perspective, engaging with an agency such as SHS Sales & Marketing gives them expert access to a range of leading brands, along with key channel and shopper insights that can help them plan their range, merchandising and promotional offering most effectively in order to maximise their sales opportunity. SHS Sales & Marketing staff work with retailers every day, so they understand the needs, challenges and opportunities faced by retailers and can share experiences with brand owners who in turn are able to respond to those needs in order to drive retailer satisfaction.

How do you ensure this relationship is maintained?

SHS Sales & Marketing Ireland works with some of the biggest global brands

The hugely popular WKD brand, part of the SHS Sales & Marketing portfolio.

and we therefore demand the best people to work with them. We firmly believe it’s our people that make the difference and in an ever-changing and demanding business environment, these values provide the focus we need to sustain a culture of high performance and delivery from our team to ensure we remain one of the leading sales and marketing companies in Ireland.

How important is innovation and new product development to the FMCG market?

Innovation is crucial in any market and the FMCG sector is no exception.

SHS Sales & Marketing plays a central role in supporting innovation and adds real value for brand owners by cutting through multiple streams of data and acting as a trusted advisor. At both a brand owner and customer level, SHS Sales & Marketing can find the right evidence to help demonstrate the opportunities and benefits of stocking certain products. By ensuring our advisors are open to relevant, compelling and timely insight means that we are able to respond quickly and effectively to changes in shopper behaviour on behalf of brand-owners.

Have you any new product launches in the pipeline?

SHS Sales & Marketing invests considerable time and money attending global trade fairs in order to understand future consumer trends, while also taking time to source new products or brands for our Irish retailers/consumers. SHS Sales & Marketing have a number of exciting product/new business launches in the pipeline, details of which will be unveiled over the coming months.

How do you think the FMCG market in Ireland will perform over the coming year?

We know the FMCG sector is experiencing significant pressure: that’s why we invest time working closely with brand owners in developing bespoke solutions for our retailers that generate results and value for money. Last year, a number of retail channels experienced considerable growth. If similar growth can be achieved in the coming year, this is positive news for the FMCG market in Ireland. Whether you believe we are seeing the green shoots of recovery or that the worst is still to come, brands with a great story to tell and who continue to invest in the Irish FMCG sector through tough times will always emerge the stronger.