Insight into Marketing to Trade

Rineanna

I'm trying to better understand how the process of organisations marketing to supermarket chains, smaller convenience stores works.

I have no visibility myself into how companies launching new brands into supermarkets,cash and carries, etc actually go about getting their product listed, and I was wondering does anyone have the time to write a few sentences on how the process works, or know of any sites which describe it?

I'm talking about organisations like, say, P&G, Unilever, etc who are adding a new brand to their product line and want to get it into Supermarkets and convenience stores. Do they target the Supermarket's Purchasing Dept with information about the discounts, in-store promos, etc? And do they just target Cash and Carries for the smaller retail chains?

Any insight would be appreciated just to get a picture of what happens on a tangible level.

I've come across the term in-store activation, but a couple of sites are making it out to be similar to POS support; can anyone briefly clarify?

growler

The big fmcg manufacturers don't really have too much of a problem getting shelf space in the supermarkets as they will already have existing relationships with the category buying teams, who look after what products go on the "dishwasher tablets" shelf etc. although given the huge power of the big chains they get squeezed on margins as you have to convince the supermarkets to give up proven profitable shelf space for a new product. Usually they'll agree to trial a new product in X% of store or in a region to assess potential sales and then roll out. Alternatively, if a national launch supported by big TV ad campaigns you'll get more supermarket buy in (sometimes you may see exclusively available at sainsburys type ads) and commitment to devoting shelf space to a new product.

Most of the wholesalers don't suffer from the same degree of space / profit pressure as the supermarkets do, again their willingness to devote space to your new product will be a function of demand, advertising, margins, existing goodwill / relationships.