So, you’ve looked through Caito Foods’ extensive product offerings, and have chosen to bring in a handful of new items. Or, maybe, a new item catches your eye as you visit a competitor, and you find it in your Order Guide and bring it in.
Fast forward to several days later, and those new items are beginning to “collect dust”—simply not selling and not worthy of a second chance. Or are they?
The process of introducing a new item to your customers should be a planned effort that doesn’t stop with finding a location on your department and placing a sign. Not unlike adding a menu item at a restaurant, a new item in your Produce Department should be accompanied with a marketing strategy that creates an opportunity for success. Once again using the restaurant example, one important early step would be sampling that new menu addition, and asking for candid feedback about its taste profile and value. In like fashion, adding a new citrus item, for example, should start with a sampling effort that allows your customers to experience the taste and other characteristics of that item. Sumo Mandarins are the perfect example of an item that needs to be introduced to your customers before you can hope to sell them at the level they deserve. At first glance, a Sumo is a bumpy, loose-skinned citrus item that has limited “curb appeal.” Add a pretty high retail price, and you are two-thirds of the way towards a “strikeout”. But, peel a Sumo and let the customer taste this incredible fruit—suddenly, all else is forgotten because the taste is overwhelmingly wonderful. The only question from your customer becomes: “Where are these? I want to buy a bag full!”
MERCHANDISING TIP OF THE WEEK. The decision to add a new item to your Produce Department offerings should be a well thought out process that is accompanied with a plan for success. But sometimes we encounter an item, whether newly added or one we have carried for a while, that simply isn’t selling. Our first reaction, understandably, is to eliminate the item and replace it with a new, more exciting one. But before we make that decision, we need to make certain we have given the item every opportunity to succeed. Maybe one of the reasons listed below can explain why that item isn’t selling.
Our customer doesn’t understand what it is. Your customer sees a new item and stops to take a second glance. At this time, some “marketing” needs to happen to put the customer in a place where he/she might consider a purchase. That can be accomplished by “telling a story”...either directly through conversant/informed associates, through eye-catching, colorful signage or by a staffed sampling effort that combines the attributes of all those approaches. Perfect example—14oz. Mann’s Cauliettes Cauliflower Crumbles. Rice cauliflower—cauliflower that is processed/reduced to the size and consistency of white rice—has a near cult following at retail. Google “rice cauliflower” and experience the countless recipes ands nutritional benefits. Trader Joe’s, literally, cannot keep this item on their shelves. But your customers do not know that until you tell them...or show them!
We’re offering it at the wrong price. There are two significant ways a price can be wrong: in comparison to other Retailers, or at a level that doesn’t represent a value. This second criteria is more important because, in reality, most customers do not know what your competitor charges for the vast majority of items you carry. But they do know what represents a value to them. A $3.99/lb. bunch of asparagus might be the price that achieves the proper percentage of profit but, you must recognize, is a pretty large expenditure for a customer to serve a vegetable side dish. Better to reduce the SRP, make a few points less, and “feed your customers”, which might keep them from shopping elsewhere.
We’re offering it in the wrong location. One of the most frequently poorly located vegetable sub-categories is the complete line of Mann’s cut vegetables. These items need to be displayed near other value-added vegetables—like the complete Garden Highway tray overwrap line of vegetable side dishes. In the “Value-added Vegetable” category, side dishes (like those Mann’s products) represent 57% of sales within that category. To place those items in the midst of the salad section, for example, is allowing your customers to overlook them.
It has an appearance problem. As Phil Caito wisely pointed out, “customers buy with their eyes”, so the appearance of your product is vitally important. Do not, for the sake of product rotation, cover beautiful product with marginal. Best example, a banana display that sprinkles spotted bananas over the entire display for a “clean up”. Better to “tote” those spotted bananas up and separate.
It has a bad taste profile. When bringing in a new item—whenever possible—give it a taste-test. Do that before committing to a large quantity for a massive display. Variety melons are an excellent example of the importance of this. Can you explain the taste difference between a Crenshaw and a Santa Claus melon?
There are too many other similar items in the category. The question then becomes: do you expand categories or fine-tune categories? Do you introduce a new fresh juice item in the midst of 35 other juices—or highlight it on an endcap display? One reason you might not be selling that new juice is that it is lost in a myriad of other offerings.
We are using boring signage...or maybe no sign at all. Are you highlighting a new item with a sign announcing its availability? Is there a story to tell—a reason your customer might want to consider that item? Use great, eye-catching signs to bring the attention you need to a new item. Let your customer know why you have brought this item aboard and the advantages of them buying it.
New items should be introduced with an effective marketing strategy. Merely finding a place to put a new offering is not enough to create sales. Sample—tell the story—price at a value—fine-tune your categories. Sales will naturally follow your efforts! Happy Selling!!
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