The New Distribution Strategies Your Product Will Need To Succeed
Amazing changes in the retail marketplace over the last 15 years has created new different obstacles to successfullylaunch a new product.Marketing romantics muse glowingly about the old days when there were supposedly multiple placement opportunities in every level of retail. True there were. But on closer inspection there are as many options now if not more.
People and organizations are not usually open to change. Change is hard requires a different thought process imagination flexibility. In the 1980s there was a seemingly endless array of local regional and national store chains including department stores drug discount food hardware and mass merchandisers. Most are now gone. They did not change.
WT Grant Montgomery Ward Venture AyrWay Gold Circle Hills SuperX Bambergers B. Altman Bonwit Teller and Wannamakers are only a tiny sampling of strong store brands that no longer exist. The new big box chains that have taken their place feature massive purchasing merchandising and logistic assets. Certainly WalMart Home Depot Macys Walgreen and Kroger have earned their collective perches as dominating chains in their categories.
The question for small businesses and entrepreneurs is how to successfully place product in these retail behemoths. And if they cant be penetrated what other options are available. The difficulties of selling a short line or a single item to WalMart are daunting but can be overcome.
To successfully sell the big boys you have to adjust change your terms and conditions to fit theirs. The key to the modern big box success is based on huge sales volumes lowest price available and logistics that enable everfaster deployment of inventory and resources. Software for shipping and receiving is as important as product features and benefits. You have to have the capacity to participate in these advanced control systems.
The internet and electronic media have created whole new sales opportunities that did not exist a generation ago. If Ebay counted all of the independent contractors they serve as employees they would be the worlds largest employer. Over 700000 entities now sell product through this vast democratic web community. Many make a fulltime living from Ebay sales. This is an internet department store with an auction format. And there are dozens of other targeted webbased sites seeking inventory to sell as well.
Home Shopping Network ANC Shop at Home and QVC are simply electronic department stores and each has a huge appetite for new products. Every year these cable television retailers search locally and through onair solicitations for fresh creative new products that can be demonstrated in this powerful sales venue. A product that sells successfully on HSN will soon be in demand on traditional retail shelves.
Years ago late night infomercials were the frequent butt of comic skits. Today major companies such as Proctor Gamble General Motors and Estee Lauder utilize this sales venue. Hundreds of products are launched in short format infomercials each year and many succeed. These spots can be produced at amazingly affordable prices and test media buys mitigate financial risk. Most big box stores feature an area displaying the “As Seen on TV” logo. It is much easier to penetrate the bureaucratic maze of a national chain with a bit of proven sales success in hand.
Much as TV infomercials have revolutionizedproduct marketing an even less expensive strategy can be undertaken utilizing print media. Main stream newspapers magazines and print supplements increasingly sell print Advertorials. An Advertorial is an article that reads and appears to be noncommercial but contains a specific product message. These have been extremely powerfulguerilla marketing tools inexpensive easy to monitor and strong revenue generators.
There are many other potential avenues to pursue in order to create sales traction for a product. Publicity campaigns have the advantage of being free specialty catalogs remittance envelopes commission sales coverage and a customized website with an online payperclick program are just a few.
The old days and stores are gone. We only have the new days and a whole raft of new opportunities to utilize. Maybe Lowes is not the place to launch your product. Successful pursuit of a guerilla option will enable a product to develop a sales base sales traction and growth. This will level the negotiating field when the big box presentation is made.
About the writer:nbsp;nbsp;Geoff Ficke has been a serial entrepreneur for almost 50 years. As a small boy earning his spending money doing odd jobs in the neighborhood he learned the value of selling himself offering service and value for money.
After putting himself through the University of Kentucky B.A. Broadcast Journalism 1969 and serving in the United States Marine Corp Mr. Ficke commenced a career in the cosmetic industry. After rising to National Sales Manager for Vidal Sassoon Hair Care at age 28 he then launched a number of ventures including Rubigo Cosmetics Parfums Pierre Wulff Paris Le Bain Couture and Fashion Fragrance.
Geoff Ficke and his consulting firm Duquesa Marketing Inc. www.duquesamarketing.com has assisted businesses large and small domestic and international entrepreneurs inventors and students in new product development capital formation licensing marketing sales and business plans and successful implementation of his customized strategies. He is a Senior Fellow at the Page Center for Entrepreneurial Studies Business School Miami University Oxford Ohio.
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