Irina Rodionova: It is not necessary to go to negotiations with a retail chain, as to war
Irina Rodionova noted: Own trade mark, in addition to reliable, long-term contracts and minimizing marketing costs, reduces the cost of a kilogram of manufactured products by increasing production volume.
‘This is the "magic key" that opens the door to increasing the marginality and profitability of any business, to the return on investment. Currently, if we do not invest in the development of production, we will not be competitive and will not be able to produce an interesting product,’ the expert stressed, listing the myths and mistakes that many manufacturers, who want to start cooperation with a large retailer, have. Among them are:
Mistake 1. Wrong choice of the proposed product.
‘Very often we hear the erroneous opinion of manufacturers that own trade mark is the cheapest product. This is a very serious misconception. Remember that we usually develop a product in different price segments and to make a product that meets the requirements of customers in the right segment is the task that we set for you.’
Mistake 2. Building an assortment matrix on the principle of "like everyone else".
‘The range with which you enter the market determines the future of the manufacturing company. It is much more expensive to redo the assortment matrix than to make it correct from the very beginning. The food market is a very rich market, but it is constantly developing, there is always room for new products and projects. The assortment matrix should be well balanced, meet the requirements of the price segment, the requirements of customers.’
Mistake 3. Lack of constructive dialogue with category managers.
‘It is not necessary to go to negotiations with the retail chain as if it were a war — it is not a war. You don't need to protect the interests of your companies like your homeland — they need to be protected in a different way. Category retail chain managers are responsible for building an assortment matrix — this is not just a purchaser, it is also a marketer who studies the consumer. Only communication and interaction, building partnerships will give a result that will lead both sides to success.’
Mistake 4. Inability to present the company and the product properly.
‘To answer a simple question from us — how does your product range differ? The answer "quality at a reasonable price" is not suitable. When you come with even the most ordinary product, you need to know how it can interest the buyer. The quality of your service is also important to us: well-organized logistics, compliance with our product quality requirements, ability to follow the technical map, etc.’
Mistake 5. Offering a product without relying on the end user.
‘You can offer products from the basic range, but please think about what consumers want: they are different in each retail chain. Do not be afraid to work with us through own trade mark, because then we will definitely tell you what our customers want, we are very seriously studying the needs of our customers.’
Mistake 6. Decline in quality after signing the contract
‘Some manufacturers first show a product of good quality, and then relax — you must not! Very often, we all have sample libraries and quality services, we hand over products for examination, and therefore - please be honest! We don't want the lowest price from you — we want the price that our customer is willing to pay for a particular product.’
Mistake 7. Lack of a marketing strategy for the company.
‘If you come and don't know how to develop a product on the shelf, we're not so interested in working with you. I always tell our partners: as soon as you come to our shelf, you stop being just our supplier - you become a partner. This is not only our shelf, but also your shelf, because the buyer comes to us to buy YOUR product.’
‘Remember that we are just as interested in the best product as you are,’ Irina Rodionova summed up her speech.