I remember a trade visit in a supermarket in a new market, time ago.
The sales rep told me that the key SKU in there were bottles.
Really? I asked, while picking a can and a bottle from the shelf:
The bottle was full of dust.
The can was clean.
After looking at the other brands, I told him that I was pretty sure that it was cans and not bottles.
Often we overcomplicate commercial strategies.
I've sat in hundreds of meetings having marketing vs sales debates on segmentation and which brands and packs to list where.
The ultimate truth check is the market test.
It could or could not work.
Wrong objectives lead to wrong decisions.
Distributing a premium brand in a mainstream venue means putting the brand in front of people that do not want to buy.
If you see a dusty SKU on the shelf, it probably should not have been there in the first place.
It could be that:
- the brand is wrong
- the price is wrong
- the SKU is wrong
It could be various reasons but the market never lies.
If the brand sells, it could be that it was just because of a price promo.
Remember to check the value chain of that SKU.
You might find a surprise.
You are losing money for each one you sold.
Unfortunately the promo will carry on until the last one sold.
Unclear in house, unclear in market.