Question

Topic: Strategy

Retailer Engagement/loyalty Program

Posted by Anonymous on 8/8/2007 at 1:51 AM ET 250 Points
Hi all,

I've recently joined an ad agency after serving a Web Studio. I'm working on one of the big Tobacco company account and the first project I'm handling is retail engagement program.

I need to develop a retail engagement program with the following Generic ovjectives:
- to establish and maintain long term sustainable relations with the retailers
-to differentiate itself from the competition – among tobacco companies as well as other FMCG companies

Currently all companies pay for placement, shelf share, Availability, etc to retailers. This is a very common practise among Tobacco companies here. Companies habituate retailer to build relations based on rewarding.

Due to tough competition, we are thinking of implemeting adequate program for top retailer in order to ensure competitiveness and sustainability in retail universe.

First we are planning to develop the progam for top 15% retailers only and later for others.

The desired outcome of the program would be innately focused on business area, employing the rational reasons for retailers working with my client and presenting them as real business partners and experts in retail while providing the personal 'ego" component whereever applicable and fit-for-purpose.

Due to dark market secnario, we cannot go for the following:
- no promotion activities to consumers in Gro/Co
- no distribution of tobacco branded incentives to consumers
- no lottery/prize draw

I've few ideas of launching a Retailer club where bith informative and entertaining activies will take place. Also implemeting retail advocay program, even providing them experienced shop assistants who could concentrate on selling client's product as well other consumer goods.

I would highly appreciate if I could get some ideas from you experts..

Regards,
Kaustubh
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RESPONSES

  • Posted by steven.alker on 8/8/2007 at 7:16 AM Member
    Not for points!

    Offer them a prize of a free week as a voluntary worker on a Cancer ward, so that they can see the effects of their sales success at first hand.

    Sorry, but I’ve turned down tobacco related work on principal and I smoke. Wish I didn’t.

    Best wishes all the same, I hope that you’ll get some good ideas from this site, though not from me!

    Steve Alker
    (Personal entry, not reflecting the views of either of my companies)
  • Posted by Mushfique Manzoor on 8/15/2007 at 5:58 AM Accepted
    Hi Kaustubh

    with my experience from tobacco industry, i understand your difficulties in the dark markets which is same here in Banglaedesh.

    some ideas for you to take..

    1. you can undertake a Retailer Education Program, in which you (your clients Tobacco Giant, is it BAT?) will teach the top 15% retailers on efficient ways of shelf management, stock-keeping, inventory management, customer interaction etc. This will create a bond with the retailers as they are benefitted from you will give you a subconscious advantage for your brand presence in trade level in terms of shelf space, pack facing and merchandising.

    2. involve the retailers in the CSR activity of your client. in Bangladesh BAT is engaged in tree plantation drive to make the country green and it involves the trade in this activity. you might also try this.

    3. you can also undertake some business enhancement programs for some of this retail shops who trades in music as well like installing CD trial stations (where the buyer can listen to music putting a headphone before buying the CD) along with merchandising. as the business of the retailer will increase he will be more inclined towards your clients.

    hope this helps.. if you need further help drop me a mail (from my profile). btw, are u based in Kazakhstan?

    cheers!
  • Posted by Mushfique Manzoor on 8/15/2007 at 6:28 AM Accepted
    Hi there

    i forgot to mention that since you have restriction in Grocery and Convenience channels, you should focus on HORECA and Key Account as well as alternative channels.

    4. you can teach the self-service stores on category management and shelf and display management.

    cheers!
  • Posted by Mushfique Manzoor on 8/21/2007 at 11:05 AM Member
    Hi Kaustubh

    yes, the situation is similar here, competition always paid more money and the trade got habituated in that.

    now, you can get my email address from my profile, just click on it.

    cheers!
  • Posted on 9/25/2008 at 3:19 AM Member
    Hi Kastubh, im working on something similar and need your help, can you write to me at nish.dube@gmail.com
    thanks
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