GTR: Cracking The Retailer Code In 1 Simple Chart

Warning : This Newsletter Contains Emotive Language..... For Good Reason...

It has been busy start to 2022 and we have been working super hard for our clients as they increase the work they do with us. We have also started work on a cross category project for a retailer which is super exciting. Fascinating insights coming from the project.

With talk of TFWA Singapore, countries opening up and travel is slowly returning, I thought I would write about the Retailer / Brand dynamic. For as long as I can remember, the topics of discussion at the trade shows have been the same - they revolve around needing to be more collaborative, open and share data. It can feel like groundhog day sometimes.

Now, I decided to write this because I have spent almost 8 years working for a duty free retailer working in cross functional roles. I have also seen how many brands operate, the different styles and cultures that are presented and seen the direct impact that has within a retailer.

I have seen a group executives from a brand file into a retailer with a game plan, attack and walk away with the outcome they needed..... but they were disliked by the retailer.

I have seen a softly softly approach taken and it was more successful however, they fell at the final hurdle down to one simple thing.

I have seen brands confused because they were unable to get traction with the retailer or they respond with "They just won't listen".

Sound familiar?

How To Get Traction With A Travel Retailer

I have created a simple chart below to demonstrate how to get traction. Yes.... it is emotive language - Love / Hate, Need / Want. It is emotive language because it is the simplest form and needs to hit home.

First, you need to understand how the retailer views your organisation. Just because you get on well, doesn't mean the Retailer loves you. Don't be fooled!

You might get on with your in-laws but as soon as they leave you might mutter "thank god they have gone"..... that might be want the retailer says about your organisation.

So let's take a closer look at this perception map below....

What Is The Retailer View Of Your Business?

In short, you are always going to get further if you are in the Love / Want quadrant than the Need / Hate quadrant.

NEED / WANT

The chart is split into Need / Want (Does the retailer NEED your product or do they WANT your product?). There is a big difference. Is your brand an essential part of their product category. Think Duracell Batteries.... it is an anchor brand, a signpost. If you are going to have Batteries, you are going to NEED Duracell there. A WANTED brand is where the shopper is looking out for your brand and everyone wants you in their stores.

LOVE / HATE

The Other split is Love / Hate - it is super simple. Does the Retailer enjoy working with you? Or do they need to tolerate you? Simple. Once again, I cannot stress enough... do not assume that retailers love your brand. What you think they think and what they actually think are often very different.

The Quadrant Explained

Let's start off with NEED / HATE. It is best to assume you are in this square because it will absolutely sharpen your focus on moving out of it. This is where the retailer needs your product but they hate working with your organisation. The supplier can demonstrate high pressure tactics, bullying, cajoling, lack of professionalism etc. It may just be that the supplier doesn't listen or does not make things easy. You are also likely to have #samesame products that will dilute the category, affect the mix and lower the retailers sales and profitability (more on this in a later newsletter).

If you are only about winning and getting one over on the retailer, you will never reach your full potential. It is short termism.

Next, NEED / LOVE. This is where the product is essential to the portfolio. The retailer on the whole enjoys working with you but they have an unease that this dynamic can change at any time. Trust needs to be built over time and as a supplier, you may be tested. Be patient.

To get out of this square, show TRUE partnership and work with them in a way that demonstrate a deep understanding of and a deep empathy with the retailer's business.

Next is WANT / HATE. This is where the supplier has a brand that the retailer wants in their stores because it is 'on trend' or they think it will drive traffic..... but the supplier tries to call the shots, be demanding on position in store, pricing etc. The retailer may concede to demands but you can be sure that they will get payback at some point.... and it won't be nice.

A wanted brand opens the door, it is how you behave once your are in will make all the difference.

Now.. The Magic Square.... LOVE / WANT. This is where the supplier has a brand that the retailer wants AND the supplier is a joy to work with. Being a joy to work with opens up all sorts of opportunities / access to new projects / data / partnerships and more. You might assume that you are here..... sorry to disappoint, you are probably not. You do not need to have a new brand to be wanted. Being seen to be innovative, creative and trying to engage the shopper.

To get into this square, you need to think, walk and talk like a retailer. You need to 'Get it' and so many fall short.

How Do You Move Towards the LOVE / WANT Square?

Well, there are a number of things that need that can be done to help you move towards that square including:

1. Think & behave like a retailer
2. Speak their language (adopt their terminology), not yours
3. Know the difference between Pax driven sales and SPP driven sales. If you don't, a sharp commercial team will pull you apart.
4. Embrace and understand THEIR metrics and not yours
5. Pitch your products in a way that shows your aim is grow the pie and not steal share from your competitor
6. Get into stores, be visible, talk to shoppers
7. Actively sell on the shop floor (particularly Christmas week!! and even if it is another brand's products. Trust me, this will win you brownie points! It is a marathon, not a sprint)
8. Be kind, be helpful. Good manners make a massive difference
9. If you want more data, you are going to need to show up with accurate reporting of their data. If you are don't respect it and work with it properly, why the hell would they give you more?? (drop me a line for a virtual coffee and I can give you some pointers).
10. Understand that they have SO MANY opportunities for you to get into that square... it just requires a different perspective.

Reset Your View Of The World

Does the above work? Absolutely! I have gone to meet retailers with brands (more as an observer and support) and I have observed retailers put their "walls up". It is about this time I start talking (no... I am not Harry Potter speaking Parseltongue!) and the walls come down... quickly.... and progress is made.... because I speak their language.

If you are sometimes frustrated with a retailer and you want things to move forward, try some of the techniques above. Assume that you NOT in that LOVE / WANT golden square, because very few really make it in and even less stay in there.

You might read the above and think it is over simplistic.... maybe it is... but sometimes it is the simple ideas that make the biggest impact. If you have any questions, drop me a line at kevin.brocklebank@oneredkite.com.

As ever, thank you for reading, reacting, commenting and sharing.

Have a great week.

Kevin

I am the Founder and Managing Director of One Red Kite. We support our clients with Data Management, Analysis, Dashboarding & Reporting, Category Management, Bespoke Mystery Shopping and Recruitment. We proudly support our clients to deliver better.