Media Release March 2007
Traditional market research has overlooked the importance of trading partners and the supply chain, according to Norrelle Goldring, Principal of ShopAbility.
‘In recent times there has been a huge focus on consumer and shopper research, which is a good thing, but in the last 12 months more companies have been ramping up their focus on trade, ’ Norrelle says. ‘The thing is, if you don’t know how your staff, trading partners and supply chain experience working with you, or your competitors, you’re missing a big opportunity to optimise sales.‘Companies are also seeking route to market intelligence – who is who in the zoo and how they operate – to ensure they are not behind the 8-ball.’Norrelle has worked with major global and national companies including Coca Cola, Nestle, Goodman Fielder, Selleys, Orica Mining and Diageo.
‘Trade research results in some of the most profound “A-HA” moments. One company we worked with came to the realisation that their trading partners saw them as monopolistic bullies, and they would switch alliance if they had another option.
‘That kind of insight is priceless – because defining the problem enables us to implement the improvements that can protect a company when the monopoly ends and a second player enters the market,’ she says.
‘Another company we worked with discovered that their biggest trading issues were centred around delivery in full and on time (DIFOT), rather than trading terms, price points or consumer promotions.’
‘Sometimes the simplest initiatives can improve relations dramatically, and have a significant impact on bottom line sales.’
Norrelle says good trade research should result in recommendations about:
- The biggest ‘fix now’ areas for your business that, if solved, will increase sales the fastest and most dramatically
- Supply chain: best practice warehousing, distribution, delivery and sales service arrangements according to what your trading partners say they want
- Sales team structures and servicing improvements: frequency, territories, what the other guys are offering that you aren’t
- How to optimise your category’s sales within its role to the retailer
- Incentive schemes – retailers, sales staff
- Internal and retail training requirements
- Incremental shopper behaviour insights.
‘I think we will see an increasing focus on trade research in the future – if you don’t know what they think of you, then you may not only miss the problem but the solution as well.’
