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We've made it into the supermarket!

4 parts, about 20 minutes. Your work saves itself in this browser.

Before you start: what you need to know

Trade marketing is about selling through other people's stores, like supermarkets. People in this role negotiate with the chain's buyer, choose where and how to sit on the shelf, prepare promotions and check store by store whether the product sells.

  1. The shelf

    In the store people decide in a few seconds. The best spot is at eye level, in the aisle where people look for that type of product. Extra display stands (near the checkouts, at the end of an aisle) help at the right moments.

    For exampleAn artisan jam sells more at eye level, next to the other organic jams, than on the bottom shelf.

  2. Sell-in and sell-out

    Sell-in is how much we sell to the supermarket (the packs delivered). Sell-out is how much the supermarket sells to customers. To stay on the shelf sell-out counts: if products don't move, the buyer removes them.

    For exampleWe deliver 10 jars of jam to 20 stores: sell-in 200. If customers buy 150 in a month, the average sell-out is 150 ÷ 20 = 7.5 per store.

  3. Store margin

    The supermarket pays us a sell price and resells at a higher price. The difference is its margin: the store needs to earn too, otherwise it won't keep us.

    For exampleJam sold to the store at €3.00, sold on at €4.50: the supermarket earns €1.50 per jar.

  4. Compliant promotions

    A good promotion is simple, true and time-limited. You can't say "the lowest price" without checking it, and a free gift can't be exchanged for personal data without freely given consent.

    For example"2 jars for €8 instead of €9, from 1 to 15 March" is clear and verifiable.

Done reading, start part 1
1

Where do we put it?

Before you answer

For each spot imagine a person looking for tea: do they see it straight away? Is it in the aisle where they'd look? Is it the right time? A spot that's free but far from the aisle or hidden down low doesn't help sell.

For exampleJam next to the detergents: there's space, but nobody looks for breakfast there.

The buyer (who buys products for the chain) offers us a few spots. Which do you choose and which do you avoid?

ItemChooseAvoid
Eye-level shelf, in the tea and herbal tea aisle
Next to other brands' organic teas, where organic shoppers look for them
Bottom shelf, near the floor
At the end of the detergent aisle, because there's free space
A small display stand near the checkouts in October, with the Evening Herbal Teas

Why it matters. Shelf position changes sales a lot: eye level, the aisle where people look, and extra space (display stands) at the right time. Space is negotiated with the buyer.

2

Read the numbers

Before you answer

Follow the formulas written next to each field. Sell-in = stores × packs delivered. Store margin = shelf price − sell price. Sell-out per store = total sold ÷ number of stores.

For example20 stores × 10 jars = 200. Shelf €4.50, sell price €3.00: €1.50. 150 sold ÷ 20 stores = 7.5.

Using the data on the card, do the maths for the first month.

Why it matters. Sell-in is how much we sell to the supermarket, sell-out is how much the supermarket sells to customers. If sell-out is low, the buyer removes the product and gives the space to another.

3

Choose the promotion

Before you answer

Check each promotion with four questions: is it true? Does it have a limited duration? Is it sustainable for us and for the store? Does it follow the rules on claims and personal data? One no is enough to discard it.

For example"60% off forever" makes us lose money; "The cheapest in Italy" without checking is misleading.

The buyer asks us for a promotion for November. Which do you propose?

Choose the promotion

Why it matters. A good promotion has a real benefit, a limited duration and a margin that holds up. Unverified claims are misleading practices (consumer protection law), and pre-ticked consent isn't valid under the GDPR.

4

What do you do in the 10 stores where it doesn't sell?

Before you answer

There can be more than one right answer. First you understand why it isn't selling (is the product really on the shelf? where?), then you act where needed. Sending more stock, selling off cheap or inventing reviews doesn't solve the problem and can be unfair.

For exampleIf jam doesn't sell in 5 stores, you go and look: often it's ended up in the back or on the wrong shelf.

Choose all the useful actions, and only those.

What do you do in the 10 stores where it doesn't sell?

Why it matters. Trade marketing works in stores: it checks the display, reads the data with the buyer and invests where needed. Pushing more stock into stores without getting customers to buy only creates returns and unsold stock.

1 of 5

Your Trade marketing exercise

Giorgio has written to you: We've made it into the supermarket!. You'll solve it in 4 parts, in about 20 minutes.