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5 steps to proactively managing your new item launch at shelf

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Jon Walker

479-877-0277

jwalker@shelflevelretail.com

www.shelflevelretail.com

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Out-of-stocks are detrimental to a CPG company's operations, financial performance, customer and consumer satisfaction and loyalty, and brand image. It's critical to the bottom line that companies prioritize effective supply chain processes , inventory, and shelf level product maintanence.

In this blog, we will discuss a proactive 5 step solution to managing a new item that has been recently introduced, We provide an extremely cost effective approach with proven ROI on every program. This process can be deployed at any retailer that provides store-by-store, day-by-day sales visiblity.

Step 1: Deploy our Retail Call Specialist to make certain that your product is cut-in to the Planogram.

Many suppliers make the mistake of launching a new item with expectations that the retailers will take care of making sure the product makes it to the shelf.

The reality is that in most larger retailers, only about 50% of the stores will be complete the cut-in in 2 weeks. Speed is critical for New Item launches because you are typically racing against a 90 day timeframe to be successful. Everyday that passes without product on shelf decreases your chance of making it through the critical test period.

Solution: We recommend that the supplier pulls a report identifying all stores showing "0" sales two weeks after product has hit the store.

Shelf Level Retail then deploys our Pay for Performance "0" Sales Call Center solution within 24 hours of data receipt, via our Retail Call Specialists. We remind the department manager of the planogram set date, and ask for their support in setting the product. We only bill for activated stores.

On average, we activate 50 - 80% of the stores within two weeks.

Step 2: Utilize our Retail Call Specialist on second round attempt to activate stubborn stores

Two weeks after our first round of calls, there will be a subset of stores that have not yet activated.

Solution: We recommend to make another round of calls, reminding the store that we are still not seeing sales.

On average, we activate 75 - 95% of the zero sales stores with two rounds of calls from our Retail Specialists. Again, we only bill for activated stores.

Step 3: Deploy merchandisers to remaining non-selling locations

We know from experience, that we could call some locations until we were blue in the face and still not get the product placed. After discussing the issue with the manager twice and still not getting the results, its time to take more aggressive measures.

Solution: We recommend deploying Shelf Level Retail Solutions Representatives to locate the product in the backroom and place on shelf.

By following steps 1 and 2, you may need to actually only deploy to less than 5% of the zero sales stores.

This process typically results in savings of 60% or more versus traditional retail service.

Step 4: Deploy our Retail Call Specialist for maintanence every 6 weeks on "0" sales items.

Things change at store level. It is important to constantly monitor sales and inventory levels. The bottom line is that if your product goes 6 weeks without a sale, that typically signifies that you have an issue.

Those issues could be one or more of the following:

Product not on shelf
Shelf tag missing
Incorrect planogram placement
Incorrect inventory counts in system due to shrink and product is not replenishing.

Solution: We recommend that the supplier pulls a report identiftying all stores showing "0" sales every 6 weeks.

Shelf Level Retail then deploys our Pay for Performance "0" Sales Call Center solution within 24 hours of data receipt, via our Retail Call Specialists. We address the "0" sales issue with the department manager and ask for their support in correcting the issue. We also ask them to confirm inventory counts and make necessary adjustments. We only bill for activated stores.

By being proactive and addressing "0" sales on a regular basis, many of our clients experience "0" sales in less than 5% of their stores with regular maintanence.

Step 5: Deploy our Digital Sampling Program to drive consumer trial and increase your Ecommerce Star Ratings

Its difficult to drive trial on new products. It can be very expensive to run instore demonstrations. Retailers are using review ratings as a way to measure consumer interest in a product more than ever! Shoppers are using the internet to look at user reviews before purchasing a product more than ever!

Solution: Through the Shelf Level mobile app, our Digital Sampling program mobilizes real shoppers to buy, try, write positive reviews about your product for specific retailers. An alternative to traditional product demonstrations, Digital Sampling drives product trial and awareness and generates positive reviews for your products

How it works:

Select targeted consumers; Demographic/Geographic targeting
Deploy consumers to specific stores, have them purchase online, or send them a sample kit.
Product Trial at Home
Consumer answers questionnaire and provides online feedback
Consumer is directed to go online and post a positive retailer online product review

Benefits of our program

Solve "0" sales issues immediately! This is the fastest, most cost effective solution. 100% ROI through Pay for Performance!
Our experienced 35-seat call center is located in Arkansas.
Programs can launch with 24 hours of lead-time.
Proactively manage your product at shelf level.
Drive Trial on new items!

Our state of the art software provides the following benefits for our Retail Call Specialists:

Autodialing & appointment setting
Store specific data based script
Open ended commentary data capture
Store history and manager profile data capture
Store performance history

How effective is our Out of Stock Solution?

Here are results from some recent projects:

Shampoo- 589 of 829 (72%) points of distribution activated within 14 days. $17,854 in POS in activated stores during same timeframe.

Salad Dressing- 2,432 of 3,315 (74%) points of distribution activated within 14 days. $27,897 in POS in activated stores during same timeframe.

Vitamins- 69 of 102 (68%) points of distribution activated within 14 days. $2,542 in POS in activated stores during same timeframe.

· Motor Oil - 1167 of 2389 (49%) points of distribution activated within 14 days. $17,845 in POS in activated stores during same timeframe

Try it for free! 50 store free test on "0" sales to all new clients

Click to email me to set-up an appointment.

Lets talk!

Jon Walker

479-877-0277

jwalker@shelflevelretail.com

www.shelflevelretail.com

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