Highlighting Different Retail Channels As The Sector Matures To Meet Consumer Demand
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1 Highlighting Different Retail Channels As The Sector Matures To Meet Consumer Demand Recognising the importance of various retail channels and the opportunity each present Uncovering the tactics used to introduce new products and how these lead to a successful launch Appreciating cross-sector retail channels used and how these can be adopted for E-Cigarettes & E-Liquids Reviewing return on investment through traditional marketing channels, what works best?
2 Varied Retail Channel Online Wholesale Independents / CTN / Forecourts / Pharmacy Supermarkets / Multiples Unconventional Retail
3 Online Positives Customer availability Any consumer Variety for consumer Various price points Easy to explain features and benefits / video content Negatives 1000s of competitors SEO takes time No ad words No Ebay / Amazon No service In today s tech world, we live online. E-commerce websites are a must, however not always the most effective route to market.
4 Wholesale Positives 1000s of potential retailers Great for new products in existing brands POS marketing use is strong Get to areas of the market you may not be able to service directly Negatives No control over the end seller or user Hard to gauge size of the distribution network Hard to stand out from the competition Tough to launch new brands Launching a new brand into wholesale is tough due to established brands and substantial competition. With a recognised brand there are great opportunities for wholesalers to push new products.
5 Independents / CTN / Forecourts / Pharmacy Positives 1000s of potential outlets Distress purchases may increase retail value Opportunities for new product with existing brands Consumer shopping trends are strong in independent retailers Negatives Retail space is often limited Lots of legwork for smaller orders Difficult to find the right pricing point, to not undercut wholesalers Reps are expensive but necessary to get the best return This sector offers a little and often approach to sales with strong customer loyalty, especially in independent retails and CTNs.
6 Supermarkets / Multiple retailers Positives 1000s of outlets Repeat customers week on week Great kudos for brands Fantastic brand awareness and visibility Negatives Limited space / display solutions Marketing support Takes time (usually a long time) to gain traction Category importance is sometimes overlooked on a to ratio vs cigarettes To gain listings in the multiple retailers is an amazing feeling and great as a brand building exercise. However the volume of sales is often lower than you would expect from so much visibility.
7 Unconventional Retail Channels Positives Untapped markets Any smokers are the target audience Limited competition Negatives May take some convincing on the value of the category Difficult to gain display space Results can be hit or miss Expect random results - Had unbelievable success and volumes for our brands through areas such as discount retail, however the gambles don t always pay off such as Rymans / Robert Dyas.
8 Conclusion If you think there is an opportunity, or gap in the market you re probably right! Analyse the risk & reward in this industry it may be well worth it My opinion I d rather try something and fail than not try at all!
9 Successful launches of new products There is constant innovation in the industry Consider carefully the target audience for the product Ask why will THIS product stand out? Consider product extension strategies
10 Innovation in the industry and the target audience New developments every day Who are they aimed at? Who are your target routes to market? What are your existing routes to market? Price Product Place Promotion Packaging Are you competitive? Is the value for money enough for someone to risk their cash? What makes it better than existing products? Repeat business? Where to sell? Why would someone sell it? With TPD much tougher to promote the why to buy? Does exactly what it says on the tin! Clear concise info
11 Product Extension Strategies Positives Easy Option Colour Style Packaging Flavours Negatives Cannibalisation of existing range Fringe products are not always as popular as the core The demand is clear in e-liquid and e-cigarette terms. People want options in flavour, strength, colour and style. MY ADVICE: Be subtly different and keep it interesting!
12 Conclusion You can have the best product in the world, but is you cant get someone to buy it don t bother! Make sure you have you customer / target market clear before investing heavily in R&D or stock. It may be a game-changing product if you cant find a market the only game it will change will be your own time and money.
13 Existing product / existing channels Low risk Predictable returns Planning and forecasting is fairly easy Growing market means growing business Existing product / existing channels Solid sales story Consumer awareness of product or brand Channel may not work Forecastable risk Questionable rewards New product / existing channels New product / new channels Strong brand will bring reward Credibility with channel and consumer Planning and forecasting is fairly easy Growing market means growing business The next big thing? The next big flop? High risk possibly higher reward
14 What does it all boil down to? Start with the end in mind Who is the end consumer? Do they shop there? Does your POS and packaging appeal to them? Can they afford your product? Any retailer in the UK can sell vaping products Don t be put off by trying something or somewhere new. It might be the best thing you ever did!
15 THANK YOU!
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