Sunday 15 July 2018

Thinking About Details For Shopping Today

Some Growing Challenges In Fundamental Aspects Of

How retailers and brands can avoid the race to the bottom in online pricing

How price competition drives down price Retailers can sell to consumers at higher prices because the products can’t be found anywhere else, which means brands can offer their exclusive products to the retailers at a healthy margin also. 3. Online-optimized packaging: Consumer-friendly packaging is a way for brands to boost sales online. If a granola bar brand offers 10-bar packs at the supermarket and jumbo 24- or 48-bar packs at price clubs such as Sam’s Club or Costco, they might consider drumming up online sales with smaller delivery-friendly 4-bar packs. 4. Surgical marketing:Instead of spending money on expensive above-the-line advertising (e.g., TV commercials) or traditional marketing programs, brands can be much more surgical and measured on investing marketing dollars to drive awareness and conversion for more profitable products through new digital advertising vehicles like Amazon Marketing Services. 5. Bundling:By understanding unit-level contribution profits and identifying product affinity relationships through real-time market insights, brands can quickly bundle the unprofitable products with their more profitable products. 6. MAP monitoring and enforcement actions:In addition to having a strong MAP policy and having it part of any retail-wholesale agreement, brands must also actively monitor and enforce policies when there are violations. While these discussions have to be navigated skillfully, brands that are armed with real-time monitoring and data will have a much better opportunity to negotiate with and change the behavior of violating retailers.

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