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Unread 7th Jan 2017, 10:54 PM   #1
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In-Store Customer Redirection
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Hi Guys,

Let me explain the situation I'm facing.
I work in a F&B distributor for a wide range of healthy and natural drinks.
We distribute to one of the largest hypermarkets in my country.
There are very high fees for renting a space in the chiller where we display a particular brand.
Now after calculating the year expenses and revenue for only that one brand, it seems like we have made a yearly loss of $7,000 only because of the chiller situation, needless to say that customers usually don't buy it to drink it instantly, but they use it later so there is no dire need of selling it chilled in the hypermarket.

Now what I want to do is give up that chiller space which costs around $25,000 per year and somehow redirect customers who used to buy from chiller to the shelf space.

My question is how to do it? How to inform customers that products are only available now at the shelf?

I do have a team of promoters, design and printing agency.
Should i put some wobbler, design on floor, send the promoters to stand next to chiller?

What do you guys think?
Will appreciate if you brainstorm together, maybe we can come up with some new ideas and pick the most effective one.

Thanks in Advance.
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Unread 8th Jan 2017, 12:36 AM   #2
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Re: In-Store Customer Redirection
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Originally Posted by sherifazmy View Post

Hi Guys,

Let me explain the situation I'm facing.
I work in a F&B distributor for a wide range of healthy and natural drinks.
We distribute to one of the largest hypermarkets in my country.
There are very high fees for renting a space in the chiller where we display a particular brand.
Now after calculating the year expenses and revenue for only that one brand, it seems like we have made a yearly loss of $7,000 only because of the chiller situation, needless to say that customers usually don't buy it to drink it instantly, but they use it later so there is no dire need of selling it chilled in the hypermarket.

Now what I want to do is give up that chiller space which costs around $25,000 per year and somehow redirect customers who used to buy from chiller to the shelf space.

My question is how to do it? How to inform customers that products are only available now at the shelf?

I do have a team of promoters, design and printing agency.
Should i put some wobbler, design on floor, send the promoters to stand next to chiller?

What do you guys think?
Will appreciate if you brainstorm together, maybe we can come up with some new ideas and pick the most effective one.

Thanks in Advance.





That high cooler cost reminds me of a brilliant yet simple idea that the founder of 5-hour ENERGY drink (Manoj Bhargava) used to cut that cost down by a huge percentage and remove the competition factor.

Create a product that doesn't need to be cool, and place the product at the checkout counter.







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Unread 8th Jan 2017, 02:57 AM   #3
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Re: In-Store Customer Redirection
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Originally Posted by yukon View Post

That high cooler cost reminds me of a brilliant yet simple idea that the founder of 5-hour ENERGY drink (Manoj Bhargava) used to cut that cost down by a huge percentage and remove the competition factor.

Create a product that doesn't need to be cool, and place the product at the checkout counter.






Manoj Bhargava (Founder, 5-Hour ENERGY) - TIECon 2013 (HD) - YouTube
Well Thanks for the good idea, but it only works if you're the manufacturer, we are only distributors so we can't make our own products.

Although we are already cutting down the chiller cost, but we need some sort of redirection to shelf.
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Unread 8th Jan 2017, 03:51 AM   #4
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Re: In-Store Customer Redirection
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Originally Posted by sherifazmy View Post

Well Thanks for the good idea, but it only works if you're the manufacturer, we are only distributors so we can't make our own products.

Although we are already cutting down the chiller cost, but we need some sort of redirection to shelf.


You're contradicting yourself.

If it's going on a shelf instead of the cooler why not put it on a shelf at the cash register where everyone will see it? That was the whole point of the video.

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Unread 8th Jan 2017, 04:05 AM   #5
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The design on the floor won't work that good. The promoters will cost you money.

I would suggest you replace the chiller with coupons. Add them either where the chiller stands or somewhere near the shelf, but be sure that they are seen by customers. Your customers will get the same product for less money, plus you will get rid of the rent you pay for space.

I would suggest you do the same online: at the coupons add a web address or create a website that will target local audiences, and offer there coupons of all the products you sell.

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Unread 8th Jan 2017, 09:13 AM   #6
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Re: In-Store Customer Redirection
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I primarily agree with markhimeb.

A couple years ago we had a very similar situation with a client.

The solution that worked best for us was to create promotional signage with instantly redeemable coupons attached. The signs directed visitors to the new location of the beverages (in this case it was isle 9 of the store)

We placed one promotion near the entrance of the shop (were everyone walking in would see it) - one next to the coolers (where people were used to finding the drinks) - and another at each end of the isle.

To make a long story, short... It worked pretty well. We helped eliminate the expensive rental cost from the cooler section, and the coupons also helped increase sales (I guess most people still love a bargain).

I hope this helps you sherifazmy. At any rate, please let us know what you eventually end up testing (using?) because I'm always interested in hearing about what does, or doesn't work.Thanks.

All the best,
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Unread 8th Jan 2017, 10:11 PM   #7
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Originally Posted by yukon View Post

You're contradicting yourself.

If it's going on a shelf instead of the cooler why not put it on a shelf at the cash register where everyone will see it? That was the whole point of the video.
It's a hypermarket not a supermarket, they have rules and regulations,
you can't just go make a custom shelf for your products and add it at the register, doesn't work that way. There is a shelf space where you products will be displayed according to its category.
That't why the redirection is needed.
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Unread 9th Jan 2017, 05:50 AM   #8
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Re: In-Store Customer Redirection
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Originally Posted by sherifazmy View Post

There are very high fees for renting a space in the chiller where we display a particular brand.
Now after calculating the year expenses and revenue for only that one brand, it seems like we have made a yearly loss of $7,000 only because of the chiller situation, needless to say that customers usually don't buy it to drink it instantly, but they use it later so there is no dire need of selling it chilled in the hypermarket.
I know when I'm buyng a single beverage from a chiller it is because I'm going to consume that drink pretty much immediately or at least part of that drink in the very near future.

What makes you think the buyer is not consuming immediately?

Are the "hot" buyers the same people who buy the beverage cold?

All the re-direction, floor stickers, decals, wobblers etc are good ideas but why not try increasing the price so you are making a profit?

How much of a price increase would it take?

What future business could you be sacrificing because the person buying from the fridge is thirsty and prepared to try a new beverage that they later buy a four or six pack or even a carton from the shelf?

Those would be the sort of questions I'd be asking and testing before removing the product from the chilled section.

Also how hard is it to get positioning in the chiller? If you give up the space and the shelf sales drop will you be able to go back to the position you once had?

This is why I'd increase the price and also make an offer on the chilled product to get some redemption on the hot product.

If the redemption was issued my means of answering a survey online where you asked whether the cold buyer buys hot product then you might get some answers to help you decide.

Best regards,

Ozi

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Unread 9th Jan 2017, 07:52 AM   #9
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If it's a hypermarket does that mean it sells in bulk? like multi-packs? If so then I'd say the chiller is a waste of money, if I want a multi-pack I go to the shelf only, but if I'm looking for a single I'd go to the chiller.
It depends on how it's packaged and sold.

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Unread 10th Jan 2017, 11:18 AM   #10
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Re: In-Store Customer Redirection
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are they buying multi packs or single packages? If its single packages/cans i'd stay in the chiller and see what you can do to make it profitable. maybe raising prices is the simple answer.

competing in retail is tough, distributors and retailers have single digit margins generally. retail is almost a real estate play as they charge for shelf space in their stores and try to make margin off vendors rather than at the consumer sale.

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Unread 10th Jan 2017, 03:35 PM   #11
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Being that it's a "natural" drink, is it supposed to stay chilled for shelf life?

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