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Manufacturers urged to consider consultants BUSINESS SESSION 1:
SAN DIEGO — “Niche manufacturers are an important part of NACDS Marketplace, but these smaller companies typically are new to the industry and have a great deal to learn when it comes to successfully bringing their products to market.
Looking to help inform these fledgling companies on the critical role of a sales and marketing consultant, a panel comprised of representatives, suppliers and one retailer gathered for an insightful discussion at NACDS Marketplace:”
“It is estimated that each year more than 30,000 new items are introduced into the packaged goods world. But the reality is that many of these items do not achieve success due to a lack of understanding of the commercialization process.”
“A manufacturer may come up with a great product, but if it’s not prepared and doesn’t have a sufficient marketing plan in place, the product is likely to never see the light of the shelf.”
“Smaller manufacturers aren’t the only ones facing hurdles. Fearful of being stuck with a surplus of product they can’t sell, retailers are growing increasingly cautious about whom they do business with and what they will demand of prospective clients.”
“We expect manufacturers to be involved every step of the way,” said panelist Tracy Blais, divisional merchandise manager of consumer health care for CVS Caremark. This is why it is becoming increasingly important that niche players work with a sales and marketing consultant.”
“Many small start-ups have an entrepreneurial spirit, but things may get harder and we are there to help you,” Treat the consultant like a member of your team.”
A Dozen most common mistakes that will hurt your new product's chances for success right from the get-go!
By David Biernbaum
Avoid: 1.Failing to spend enough time researching the business idea to see if it's viable.
2.Miscalculating market size, timing, ease of entry and potential market share.
3.Underestimating financial requirements and timing.
4.Hiring for convenience rather than skill requirements. Caution: Friends and relatives might be less expensive but they probably do not have the right expertise to help you in a very complex CPG enviornment.
5.Hiring random brokers for accounts “here and there” without a national plan. Use a master broker, hands-on consultant, or experienced VP Sales in the CPG industry.
6.Overprojecting sales volume and timing.
7.Starting out on your own without a CPG retail expert with comprehensive expertise and experience. Relying strictly on your product knowledge and your other business experience is not going to work out to well for most. This is a specialized field.
8. Approaching the Retailer without the ability to explain your research, marketing plans, and business proposals. To do so is just asking for trouble (i.e., pay with scan.)
9.Seeking confirmation of your actions rather than seeking the truth.
10.Underestimating (or not knowing) the true costs of doing business with chain retailers.
11.Making your initial sales call with a retailer without taking with you a retail expert or someone with extensive accounts knowledge.
12.Lacking simplicity in your vision. What’s in it for the retailer? What’s in it for your consumer? And how is this new or different enough from what’s already out there?