Discover the shocking truth about how big brands are impacting category profitability in the retail industry. In this video, we delve into the world of category management and explore the strategies that big brands use to dominate the market, often at the expense of smaller businesses. We'll examine the importance of brand awareness, brand management, and brand building in maintaining a competitive edge, as well as the role of business intelligence, consumer behavior, and customer retention in driving sales. By leveraging data analytics and marketing strategy, companies can gain valuable insights into customer experience management, merchandising, and strategic planning. However, big brands often prioritize their own brand positioning over category insights, leading to a decline in overall category profitability. As an entrepreneur or small business owner in the FMCG industry, it's essential to understand the category management process and develop effective merchandising tactics to stay ahead of the competition. By analyzing trade insights and developing a strong positioning statement, you can create a successful brand strategy that resonates with your target audience and drives customer journey engagement. Tune in to learn more about the impact of big brands on category profitability and how you can adapt your strategy to thrive in this competitive landscape.
Most of the industry worships one number: velocity – units per store per week. If you’re a small natural brand, that’s usually the metric used against you.
Here’s what doesn’t get talked about enough: small natural better-for-you brands often drive more profitable sales contribution and profitable category growth than the big, fast-moving brands. Without them, many categories would be flat or declining.
Let me explain. Shoppers today are more health conscious and as a result they carefully read labels and they pay close attention to what they put into their bodies. Food is medicine continues to be a growing trend. Therefore health conscious shoppers are less price sensitive and they will pay a premium for products that have the attributes they are looking for like less sugar, higher protein, organic, gluten-free, plant based, etc. Those brands contribute more profitable dollars to the category - their contribution. This is what the retailers take to the bank.
Conversely, big brands lacking those attributes tend to drive sales with deep discounts effectively commoditizing their brands and the categories as a result. Those brands pull profitable dollars from the categories and provide no real unique value the retailer. Their customers chase price and are not loyal to any one retailer.
Natural better-for-you brands often bringing in the most loyal shoppers, the biggest baskets, and the true innovation shoppers are looking for today. But if you’re only judged on velocity, you look like you’re underperforming. Let’s change that conversation.
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