NEXT LEVEL ASSORTMENT: Targeting Incremental Sales
November 6, 2018 | ISRAEL J. RODRIGUEZ, JR.
The fastest way to maximize category growth is to add highly incremental products. How much incremental sales new products add is a function of volume and how they drive new or more usage occasions or new shoppers. Pulling either lever grows the category faster. That’s why retailers tell us they’re more focused than ever on identifying products that help them attract and retain incremental shoppers, trips and usage occasions.
“Having the right products is one of the best ways to target and attract different segments of shoppers. We need assortments that best reflect what we’re trying to accomplish.”
“Targeting this new shopper group… can attract and build our shopper base.”
Source: Edgewood confidential trade probes with leading FDMC retailers
In today’s increasingly fragmented marketplace, brands with historically wide appeal are being picked apart at the fringes by niche players. Upstarts are finding success by effectively targeting unique and emerging consumer segments in ways that may start small, but build into a solid base that’s highly ‘incremental’. As such, retailers have become far more inquisitive about brands’ consumer positioning, their level of investment and precision with which they target shoppers to drive growth. Retailers tell us they readily welcome insights and support to target and market to shoppers more effectively.
One area that’s frustrating retailers is when they don’t get the insights or marketing support from manufacturers they want. Retailers invite insights and support to identify WHO their most attractive shopper targets are and HOW to pursue them.
“(We’d like) more shopper studies. We have been seeking this for very long time, but most vendors think it's not a relevant issue. I beg to differ...”
“Knowing these facts are one thing but knowing how to use them is more important. Without this, any knowledge they provide is just information. Implementation is critical to brand success”