Marker products are products by which customers evaluate the price level at the point of sale and the fullness of the assortment matrix in the product category.
Goods-markers are one of the most popular and advertised goods, they are found on almost all shelves, the manufacturer invests large budgets in their promotion, almost all retail representatives want to put it on their shelves.
But the problem is that the markup on such goods approaches zero, or even becomes negative for the sake of the “positive” reputation of their outlet and the preservation of the customer base.
Most often, such marker products are found in the open spaces of highly competitive markets, for example, in grocery retail, household chemicals and cosmetics stores, pet supplies, and pharmacy chains.
And the directors of sales and marketing are faced with the task of maintaining markup levels and maintaining the profit margins of outlets.
Solutions
Replacing popular marker products with private label products
Private label is a trademark or brand of a retailer (Own Trademark), under which goods produced by its order are sold. As a rule, they are distinguished by a lower price compared to branded products due to lower advertising and marketing costs. In Europe, the share of private labels on store shelves reaches 30-40%. In Russia, this direction is still developing, in some networks the share of private labels reaches 20%.
Additional sales to goods-markers.
Loyalty Culture can identify TOP products that are bought with a marker product. The sales manager will offer them to customers, the merchandiser will put them next to the promotional shelf, and they will be recommended in the online store.
In the Loyalty Culture marketing process automation platform, it is quite easy to implement these tasks. Let's analyze the real chain of interaction.
For private label products
At the very beginning, we make personal mailing lists that help to acquaint customers with private label products.
Data on gender, age and social characteristics will help to divide the audience into groups and tailor advertising texts, videos and communication channels for each target audience.
For example, for the older generation, you can focus on comparing product characteristics and working out the “fear of everything new” barrier, and for young people, focus on the “hype” from everything new.
Further, sales are analyzed and those customers who bought or viewed in the online store, or read promotional mail for the product category of interest to us, are selected.
Then we make a personal newsletter about increased bonuses when buying private label goods.
Often, large networks conduct advertising campaigns in which they promote products with zero or negative markups in order to increase customer traffic, and in retail outlets, sales managers redirect customers to purchase private label products.
For Marker Products
Theory
The system of analytics of the product range and consumer behavior allows you to identify TOP products that are most often bought with a marker product.
Thus, the Loyalty Culture system will help to create a list of the most popular products that the sales manager will offer to customers. The merchandiser will put the same goods next to the promotional shelf and the same goods will appear next to the sales card as recommended in the online store.
Practice
Have you noticed, for example, in an FMCG store that related products will never be on different shelves at different ends of the trading floor?
Let's take for example the most reverent topic "Children". Many retailers know that a parent with a child almost never leaves without a purchase.
Even for elementary diapers, you can sell a lot of things, because they can be bought by both young girls for children and grandmothers.
for children: cereals, napkins, bottles, creams for irritation, etc.;
mothers can be offered sedatives or teas;
grandmothers: cookies, vitamins, household goods, or all of the above.
This is how marketers use the Loyalty Culture platform to drive traffic to marker products with zero or negative markups to maintain profit margins, increase store traffic, promote private label products, and maintain store reputation.
Applying the described mechanics, the average customer check increases from 10 to 60%, the number of lines in the check increases by 1-3, and the markup level is maintained.
If you want to grow and take your trading to a higher level, then we are ready to help you with this, contact us in any convenient way: by email office@loycult.com or call +7 (495) 12-88-901, +7 (3412) 901-907 and we will tell you about the methods of promotion of goods-markers / private labels and organizing up-selling in your business.