Viewpoint


Promoting Reasons to Buy


Howard Becker, Divisional Director at CJ Contact Solutions discusses the challenge facing new Fast Moving Consumer Goods (FMCG) launches.


The current economic struggles are hardly the best conditions for launching new products, especially in the FMCG sector. Therefore it perhaps comes as little surprise that big­budget new


launches are now far less commonplace, with FMCG manufacturers instead resorting to spin­off lines to drive growth. But, with budgets tight and slowing topline growth, there is less money around to support even these kinds of new line launches. There is no doubt that the point­of­


purchase will remain a critical component to building loyalty for new brand extensions. In my mind, however,


improving communication with retailers themselves could arguably prove an equally effective way to build sales growth as the grocery sector continues to evolve. As shoppers begin to change the way


they buy ­ favouring multiple weekly visits to smaller stores for ‘top­up’ shops ­ FMCG brands are paying much closer attention to the fast­growing convenience sector. According to the latest IGD research, symbol group convenience retailers such as Nisa, Londis and Costcutter are enjoying the fastest growth in the grocery sector. This, though, is a sector where localised competition over range selection decisions is fierce, meaning FMCG brands face a far tougher task securing valuable shelf space for their latest product lines. The jury is always going to be out over the precise way to overcome the barriers they face, but I have a challenge for the major brands


that should hopefully guide them in the right direction. Given the growing importance of the convenience sector, better connection with store managers should be placed firmly at the heart of future launch strategies. Some brand owners, such as Dairy Crest,


are leaps ahead of most and already rising to this challenge. They are strong advocates of product innovation, having recently launched a new Cathedral City sub­brand to drive consumption of its Cheddar as a snack for adults. By also embracing innovative new approaches in the world of field marketing, they are driving new line launches into convenience retailer estates more rapidly and cost effectively. Most importantly, they are demonstrating their understanding of how to influence individual stores through the use of smart data – with the brand, its field marketing agency and data specialist SalesOut™ tracking vital sales information to secure retailer support and firm orders for new lines. Here’s hoping more FMCG


manufacturers continue to give new launches a stronger voice by promoting reasons to buy to retailers, just as effectively as they do to shoppers.


Contact:


CJ Contact Solutions T: +44 (0) 800 009 4189 www.cjcontactsolutions.co.uk


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