Question

Topic: Other

Market Share In Supermarket

Posted by Anonymous on 5/23/2011 at 3:08 PM ET 125 Points
Hi all,

I need your help please to know what are the ways to increase our market share in supermarket channel to be near to the market share for this channel from total sales in market. To make it simple, our market share in total food products is as follow: Retailers - 60%, Wholesalers - 30%, Supermarket - 10%. While Supermarket channel is contributing 50% market share from whole market.
The question is how can I make my total sales in SM channel contribute near to 30-50% from total sales? Is it possible?

Your feedback will be highly appreciated

Thanks

RAMO
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RESPONSES

  • Posted by mvaede on 5/23/2011 at 5:14 PM Accepted
    Wondering why you want SM market share to equal sales share ? Is it because of cost of sales or higher margins ??

    When you talk about "whole market" do you mean your addressable market or total market (country, region, world)

    One way to increase your sales to Supermarkets, would be white label products i.e. your product sold under the label of the Supermarket.

    If your marketing budget allows, increase amount spent in Supermarkets : end of aisle, in store demonstration

    Another way would be to do specific competitions only available in specific stores (can be copied to several SM, but one by one, to avoid conflict, confusion in the market and to analyze what worked and what didn't)

    Maybe your food products go well together with another food product or drink or special equipment. Do a bundle with that company, both of you spend money to promote the benefits of the bundle and the SM will enjoy the increased sales.

    If this is purely a theoretical exercise, the lower all of your sales to match the desired figures and if your production cost are fully flexible, our gross margin should either go up or at least stay the same and let your company remain profitable with less overall sales.

    Mikael
    B2B Marketing
  • Posted on 5/24/2011 at 10:07 AM Moderator
    You asked:

    The question is how can I make my total sales in SM channel contribute near to 30-50% from total sales? Is it possible?

    Response:

    If you increase your price dramatically in the other channels, then you will either (a) make a lot more money, or (b) lose a lot of volume so that the share in SM channel approaches the 30-50% you seek.

    If the result is (a), then you can use that money to promote aggressively in SMs and grow your share the old-fashioned way -- through well-conceived promotions.
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