Wednesday, April 18, 2012
Tuesday, April 03, 2012
new article - introduction, all comments welcome
Whilst Napoleon once famously described the UK as a nation of shopkeepers, these days it’s not so much a nation as four major players that dominate the retail landscape. With many manufacturers losing their shirts - and their souls – when negotiating with big retail why are more and more brands;
Dealing directly with the devil
Stroll innocently down the aisles of any large high street retailer and your gaze is constantly being tugged at. Enticing special offers at knee height - the most common in-store eye-level – tempt you with seductive discounts. Stop to peruse a shelving unit and an intuitive understanding of the “good, better, best” ranging of products will gradually dawn upon you: Prices rise with their height on the fixture. Reach out to select a product (conveniently located at shoulder height) and it will inevitably be better than the cheapest equivalent and cheaper than the most expensive offering. As you drop the item into your basket you congratulate yourself on the successful selection of the best value product, blissfully unaware of the years of consumer research; the intense negotiation over positioning, promotions, cost and margin; and the many arguments over delivery and logistics that have gone into helping you make your informed choice.
If you see someone suspicious muttering to themselves and maybe taking discreet pictures on their mobile in the middle of the supermarket the chances are that person works in licensing. Unless they’re on discount, licensed products will generally be in the middle of the ‘better’ section, at shoulder height, where the bulk of the sales and the margin are. If your muttering stranger is a real licensing maven they will even be able to tell you if the branded products are licensed directly by the retailer and therefore not available elsewhere.