Tag Archives: trade marketing

8 Trends that define the New Retail Industry

One of the industries that contributes most to the internal economy of a country and that employs thousands of people, without a doubt, is retail.

Retail stores, in their various formats, are not only an important source of work, but also a sector that makes available to the consumer hundreds of products that are promoted through different marketing strategies.

According to the National Association of Self-Service Stores (ANTAD), its retail chains contribute 3.4 percent of Mexico’s gross domestic product (GDP), with a total of 51,709 establishments, divided into three retailer formats.

Regarding the sales generated by retailers in our country, data from Planet Retail and Deloitte indicate that in 2016 the sum for this concept reached up to 464,940 million dollars, an amount that at the end of this year could reach 490,390 million; and for 2018 estimates of that firm suggest that net sales by retailers in Mexico would reach little more than 517 billion dollars.

What trends will define the retail sector?

The emergence of the Internet and the improvement of processes in logistics, distribution and customer service through the use of new technologies were some of the factors that have been transforming the retail industry worldwide, and that will surely continue to influence in coming years.

But just as the arrival of the network and the optimization of the operation of the retail sector have changed the industry, there are a number of trends that in the remainder of the year and the following may be glimpsed, such as:

  • Analysis of location of categories and proximity marketing: the first point refers to a more exhaustive work of analysis of purchasing habits, as well as the existing rotation in each category, to then find a way to redirect the shopper towards certain areas of the POS, which is accompanied by that type of marketing that will try to know with certainty which departments of the retailer are more traveled, why, and based on it create strategies that maximize their profitability.
  • Automated stock management: both on the shelf and in the warehouse, the correct and updated management at all times of the stock level in the store will help the retailer and manufacturers to have enough product quantity, and thereby prevent the customer from desisting to buy by not finding their products.
  • Shelves monitoring: Modelez marketing director, Luis Lazcano pointed out that each brand and store must have full control of the shelf, in terms of availability, since within a category the competition is constant and it is right there where the decision of purchase is given, so having an adequate supply will prevent a certain brand from being left behind.
  • Sustainable packaging with double use: for the new consumer a packaging with a real added value is one that not only looks good and motivates the purchase for its appearance, but also that which is produced with environmentally friendly materials, which does not require of high energy expenditure during its manufacturing process, and that has a second use.
  • Application of disruptive technologies in PDV: interactive testers, augmented and virtual reality, use of tablets to consult information about products, dynamics that start in an establishment and end with a publication in social media, are some examples of applications of new technologies that maximize the purchase experience, and this drives more purchases in a single visit.
  • Models of predictive analysis: as suggested by its name, this type of models allow the retailer to predict purchasing habits, consumption, frequency of visits, interests and tastes that it will have, to then go one step ahead of the target and offer products and services that he will need.
  • Real omnication: that is, the retailer will allow the customer to make purchases online within the PDV, it will offer an efficient online store where you can buy something and pay it in the establishment if you wish, with specific promotions for each channel that, together, give the shopper a range of purchase possibilities, as well as a pleasant experience.
  • Geomarketing strategies: as with Waze, for example, the retail sector will keep this trend so that through an SMS or suggestion within the application can know where there are retail stores near the customer, and with this the retailer knows what so often the consumer passes by, if he went to his PDV and locate potential customers.

 

Written by Lizbeth Serrano, taken from Informa BTL

3 KEYS TO THE COMMUNICATION OF THE BRAND IN THE POS

Usually when we are in a point of sale of a retail store we can find different elements that the brands use to communicate with us the consumers.

Nothing is casual in a retailer. All aspects add to the communication of brands and stores, an experience designed with the intention of influencing purchase decisions.

For this reason, signage, light, advertising, POP material, furniture, among other factors, are of great importance to position a product at the point of sale.

The communication of the marks at the point of sale

An effective point of sale should be visually appealing. For this, it is necessary to design an image that impacts the view of the consumer. This can be done through animation. In other words, elements that add a differential value to the product in its category. POP material, for example, as you know has different types, which will indicate the product category in some way, try to influence the purchase of the product and, above all, to inform the promotions that the brand handles. In a way, all of this helps improve brand communication, and also improves product turnover and increases sales.

In the following example you can see how the brand communicates with consumers. It is a brand specialized in accumulators for cars. The first element that we can observe is a signage that aims to inform the characteristics of the product that is put on sale. On the other hand, it supports the sales work of the vendors, since all data explain how to choose an accumulator.

Finally, another element that adds to the communication of the brand is the use of the catalog. As you can see POP material at the point of sale tells the consumer to locate the make, model and year of your vehicle; then asks you to identify the application code that corresponds to your car; to finish, it asks the consumer to look for the code in the front label of the accumulator or in his case ask the manager.

The catalog is a relevant element, as it describes the most important aspects of the product being offered. Obviously, their function is to give the most outstanding information, which will influence the decision to buy the consumer, since without the catalog the consumer could make a purchase decision according to their needs.

Written by Guillero Cortés , taken from Informa BTL

3 ESSENTIAL PACKAGING FUNCTIONS

A good packaging we can distinguish it through the quality in which the product is delivered. All at some point we have enjoyed a product with an excellent quality, that is, that still retains its qualities as flavor, aroma, consistency, etc .; and if we analyze this aspect from this first contact (consumer-packaging) we have an experience with the brand.

And when opening the packaging this experience may be satisfactory or on the contrary, you may come to think that the purchase was a bad idea. In this sense, when a product is opened its quality can be judged from the packaging, since it is a differential value of a brand.

Beers, for example, generally only show a label with the brand logo. This allows them to offer a simple yet forceful message to their consumers. On the other hand, the brands that offer products such as cookies, biscuits, etc., have more impressive messages in the packaging of the product, since they seek to capture the attention of their target consumers: children. Therefore, the use of animated characters and, above all, promotions. As we know, brands temporarily launch promotions for their consumers to win other products of the category of the brand, among others.

However, beyond the messages that we can find in the packaging, what is its function? Here are some of them:

Contain

This is the separation of the product from the environment, this allows consumers to manipulate the product without having to touch it directly.

To Protect

Another function of the packaging is the following: protect. In this case, the packaging keeps the product from factors that can alter its natural state or composition.

Keep

On the other hand, the packaging should allow storing and preserving food for periods of time. This factor may vary due to its characteristics.

Written by Guillero Cortés , taken from Informa BTL

3 WAYS TO SEDUCE THE CUSTOMER IN THE POS

As we have pointed out on a number of occasions, customers have modified their consumption habits in such a way that large and small retailers have had to change their way of operating and selling in order to have optimal reach with their consumers and retain them.

This work of change and adaptation by the retailer has been at a different pace, depending on the brand and resources available, but there is no doubt that the changes will continue to be presented, motivated to a large extent by the technological innovations that Over time have also modified the habits of life and consumption of people.

Given this scenario, retailers must raise their commitment to manufacturers to boost their sales and at the same time meet specific needs of customers.

According to the Real Institute of Spain, 77 percent of the people who go to a point of sale usually go there, which is an opportunity for retailers to maintain, and even raise that percentage and retain loyalty To the shopper.

In order to seduce the client and maintain their loyalty, these three ways to do so will guide you.

See fingering as an ally, not as an enemy

The influence of the Internet, the digital platform and the increase in online shopping are undeniable and indissoluble of a consumer who communicates, is informed and consumed through mobile devices, and always seeks to be connected.

Conceiving the digitization as an ally for your retailer will bring you multiple benefits not only to your processes of operation, logistics, optimization of inventories, management of personnel or added value in sales floor with the use of disruptive technologies, but also the impact you will generate In your target will be immediate, positive and valued that hardly look towards another point of sale.

Analyze buying processes and consumption habits of your shopper

This analysis will allow you to identify areas of opportunity, as well as successes and mistakes so you can continue or modify them in time, as well as valuable information on customer purchasing habits and consumer habits that will serve as a basis for the development and Implementation of marketing strategies that surprise the shopper at Point of Sale.

Bet on multichannel

As we said at the beginning of the text, today’s consumer, called millennial, generation Z, generation X, among others, is intimately linked to the use of mobile devices that are already an extension of themselves and are an essential part of their day to day.

Faced with such a reality, it is necessary for retailers to put everything within their reach and invest in being a multi-channel sales outlet that facilitates the circulation of information about their promotions, offers, novelties, launches or product data that, based on their Habits of consumption, may be of interest to you.

You must be aware that the target is multichannel, so as a retailer you must also be immersed in the same dynamic.

Written by Lizbeth Serrano , extracted from Informa BTL

THE IMPORTANCE OF FURNITURE AT THE POINT OF SALE

The Point of Sale is the point of contact of the consumer with the brands or products for their purchase. Also, there are a number of elements that influence the buying decisions of the shoppers.

According to Ana Ramírez, Director of Marketing at Sam’s Club Mexico, about 80 percent of the purchase decisions are made at the Point of Sale. Also, a factor that influences the purchasing decisions is the furniture.

 Before choosing a furniture
 
The furniture serves for the presentation, service and sale of the articles. For this reason, it is essential to choose carefully the ideal for a Point of Sale and to choose the best consider the following points:

  • Point of Sale Image
    The furniture plays an important role in informing the customer about the type of store in which it is located.

 

  • The cost
    Because you will realize a considerable investment in BTL within a retailer, it is important that you choose the right furniture for your product, since it will provide a series of qualities that will help the product to communicate a better message, that is, it will influence The decision of purchase of the consumer.

 

  • Presentation
    Likewise, the furniture works as physical support for the presentation of the products within the retailer, and as previously mentioned, it favors their display at the Point of Sale.

An Important Element for Promotion

In the same way, they serve to expose elements of promotion in the Point of Sale for the manufacturers and distributors. For example:

  • Exhibitors

They are furniture designed to show products and advertising associated with the products displayed.

  • Display

These are small holders that show the items for sale.

  • Poster

They are the most important element in the Point of Sale and thanks to that they can adopt different forms are a key factor to attract the attention of consumers.

Written by Guillermo Cortés, extracted from Informa BTL

WHAT IS TRADE MARKETING?

In my masters classes, in meetings of friends and even in my house they ask me: What is Trade Marketing? … What exactly do you do? And they ask me so intensely that it’s like they told me … What the fuck is TRADE MARKETING !!! Then let’s go to the universal source of knowledge in these times, Wikipedia … Ok No! But let’s see what it says.

 
Trade marketing is a branch of marketing or marketing that deals with and is concerned with increasing the demand for the product by the wholesale, retailer, or distributor level rather than at the consumer level.

All this is not without reason, but when in the text indicates that it is done at the level of the distributor refers to that we do it from the Point of Sale or Distribution Channel.

The Trade Marketing consists simply of applying the marketing actions in the Point of Sale, from there we started in 3.2,2 … Go!

Trade Marketing emerged as a response to the massive arrival in the market of products, many of which became a failure and ended up disappearing within a few months. The manufacturers suffered because they invested heavily in the development and commercialization of these products and did not recover, the distributors had problems to achieve a fast turnover and adequate profitability in the Point of Sale.

Then we discovered that the channels acquired more power in the negotiation and the margins were compromised.

#DatoTrade Today, 80% of the Purchase Decisions are taken at the Point of Sale, so the objective of the Trade Marketing is to attract the public to that Point of Sale and manage the ease of access of that public to the product or service that We offer improved margins in the channel.

Trade Marketing is important for two reasons:

  • Close the Circle of Sale, that is, of all the communication you saw in the media, with Trade Marketing you end up convincing and you make the decision to buy that product or service.
  • It creates Long Breath Relations, that is to say, that the channel is affected directly because we will be the first mark positioned in his mind but mainly in his heart, ALWAYS.

The main challenges of Trade Marketing are:

  • Monetize, that the products that are visible in the POS are the most profitable for both the manufacturer and the channel.
  • Long Term Vision, always be attentive to our channel so that the relationship that was created lasts as long as possible and have a proactive action for it.
  • Look after the brand in the POS, take care of our brand, keep it well positioned in the gondola or counter, with a correct pricing, a good assortment, a good offer, ensure that our value proposition is better than the competition. .
  • Identify and develop opportunities, be aware of our channel, its needs and create actions that give value to our product or service.

When we talk about Trade Marketing within the Marketing Mix or the 4Ps of Marketing, we talk mainly about the PLAZA P, and when we talk about square we talk about where our product is located and what is the route that it takes to reach the final consumer, so that We must know the various intermediaries that exist. There may be a direct distribution such as the outlets (from the manufacturer to the final consumer) or with some or some intermediaries such as the markets to finally reach the final consumer.

The Trade Marketing is a very rich area that of a time to this part has taken an important protagonism by the relation that has with diverse areas in the commerce, beyond the already known that are with the manufacturer and the channel, besides we have to The agency and the competition. Trade Marketing has to satisfy diverse needs of actors with different priorities.

The Manufacturer or Company must present solutions and must be immersed in various areas of the same, such as marketing, sales, finance, HR, systems, production, etc.

The Channel or Store should treat it in a special way, make it unique and that should be translated into facts, with special programs that give value to our brand and be the first in your heart.

The Agency must be trained, cared for, it must be known that it is the visible part of the manufacturer, they must be flexible, agile and with quality of service. The feeling of “belonging” can make the difference between doing a good execution and a magnificent execution.

The Competition must know, know who you compete with and who does not, and be able to anticipate their movements in the POS.

Now if you know that Fuck is the Trade Marketing … this is a very broad topic and I am sure that in a second part we can know in more detail this beautiful space of commerce and good relations with our channel.

I leave a sentence to reflect:

“Do not answer where your company wants to sell today, ask yourself how the shopper will buy tomorrow.”

By César Díaz, Consultant in Street Marketing, Specialist in TRADE MARKETING, taken from Hablemos de Marketing.