More Related Content Similar to Pitching a Retail Buyer -litt2021 (20) Pitching a Retail Buyer -litt20211. Marketing Essentials
2021
Professor Steven Litt
@StrategySteven
Ready to be a Marketing professional?
B2B: Pitching a Retail Buyer
©2021 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
2. Note:
There are many fine sources that cover:
Sales Need Recognition, Steps in the Sales process,
Trust-based sales, Active Listening, Handling Objections,
Sales follow-up, achieving Customer Delight, etc.
You are urged to make use of those sources!
This deck, however, covers only a few
‘front-line practical’ tips
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
3. ‘front-line practical’ tips
Buyer or ‘Category Manager in a Retail chain is a demanding role.
Are you preparing to call upon one?
Presumably you are a supplier - ie a
1. Wholesaler,
2. Rep/Broker,
3. Manufacturer, or
4. Entrepreneur
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
4. Preparing to call on a Buyer?
Are you with a….
1. Wholesaler?
2. Rep/Broker agency?
3. Manufacturer? or are you an
4. Entrepreneur?
If you’re at a Wholesaler or Rep/Broker agency, you likely have access
to all the expertise you need, inhouse! Wholesalers and Reps/Brokers
succeed because they know their Buyers inside & out.
Too often, however, Manufacturers and Entrepreneurs demonstrate
ignorance of a Buyer’s perspective/needs.
This can be a costly error! (ie a failed call, burning a bridge with a
high-fit customer)
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
5. Practical tips for dealing with a Buyer
A. How does a Buyer view the world?
B. What is Important to them?
C. What are some of their biggest fears?
D. What might sway a Buyer?
E. How do I stay ‘current’ on all the above?
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
6. Practical tips for dealing with a Buyer
A. How does a Buyer view the world?
A Buyer’s world is chaotic. Their Office is filled with newly pitched category
entries, private label mockups, merchandising racks, header cards, shelf
coupon dispensers, and more. And their Inbox? Even more chaotic!
From outside the firm (wholesalers manufacturers, reps/brokers, an
Entrepreneurs, Merchandising firms,…) → Pitches, proposals & requests!
From inside the firm: warehousing, merchandising setup staffers,
coop/flyer group, Accounting/ Finance, senior management,…
The Good News?
From outside the firm, a Buyer has access to (almost too many!) ideas,
opportunities, updates,…
And from inside the firm: terrific data on the store’s shoppers eg frequency
of shopping, average purchase $, other items in their shopping basket, % of
stock sold at regular price vs feature price,…
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
7. Practical tips for dealing with a Buyer
A. How does a Buyer view the world? (cont’d)
Buyer’s world: the data, info, proposals, requests can be overwhelming.
The Buyer’s role requires superb organizational skills, time management
& priority-setting skills, administrative patience,….
Are all Buyers adept at all these skills? NO!
One way to address this reality? → Show them respect!
Another? Help them where they’re not strong; offer to add
your skill sets, ie…→work the ‘win-wins’!
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
8. Practical tips for dealing with a Buyer
B. What is Important to a Buyer?
There is no one answer! For some, it will be their career. For others, a ‘life balance’ ie
sanity or lifestyle. Some will be competing with an colleague; others will be seeking a
way to please a certain manager ‘across the firm’ or at a more senior role.
A ‘rising star’ might seek a ‘star achievement’ to make their mark, and a shot at a
level-up role. (eg in some banners, a role on a key ‘Acid Test’ desk, such as Frozen Food).
If they’re mid or late career, they may be making ‘safer’ more conservative choices.
What metrics are often used as Performance Objectives for a Buyer?
Category Sales & Margins.
Turns (Inventory Turnover ie Stock Turns)
Cost of Returns- Damaged Goods, Obsolete Items.
‘Extra Funds’ from Suppliers (coop ad money, volume rebate, price discounts, display fees,
charity donations, etc).
Sales, Margin & New Product targets for Private Label
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
9. Practical tips for dealing with a Buyer
C. Fears? What keeps a Buyer up at night? Some worst-case scenarios:
1. Return/QA scenario that impacts consumer or shopper safety & trust eg salads that
are tainted; a new display rack that injures a shopper, etc
2. Category review forced from above, that shrinks a section, forces a major realignment
(creates chaos, heightens an already-insane workload, causes a loss of face)
3. A supply shortage eg an outbreak of BSE leas to new cross border supply constraints;
the supply of eg dog biscuits (containing beef) is interrupted.
4. Blind Spots: Many retailers have extensive, reliable, current data on their own
shoppers. A big Blind Spot? The behaviour of shopper who do not shop there
• if they stopped buying here & started buying across the street at a competitor; or
• they’ve always been buying across the street; or
• eg if they stopped buying the category altogether; or
• they’re ready to start buying (eg baby diapers) but haven’t yet decided where to buy it
What they know about such behaviours is often……...nothing! → a significant Blind Spot!
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
10. Practical tips for dealing with a Buyer
C. Fears? What keeps a Buyer up at night? What can you do to help?
Help a Buyer avoid the worst-case scenarios!
1. Returns/QA Issues
→ get QA-savvy. Ensure your firm has a ‘lot tracking system’ to allow rapid recovery if a worst-case scenario
occurs. Check with Procurement when a new ingredient or packaging supplier is being brought in.
2. Category review forced from above, that shrinks a section, forces a major realignment
→ do ‘Big Picture’ studies to defend a Buyer’s section; if it generates low $ Sales, are the margins high? If
both are low, does Shopping Basket data show higher ‘shopper value’? (eg as it is for baby diapers!). Is your
category a magnet for overall store traffic? (eg this is true of staples, such as bread & eggs)
3. A supply shortage
→ work diligently on forecasting accuracy; get savvy on Customer’s Blackout periods and timing of your
manufacturing plants ‘maintenance downs’, build relationships with Shipping teams; they may be the only
ppl who can save your bacon some day
4. Blind Spots: Many retailers have extensive, reliable, current data on their own shoppers. A big Blind Spot?
The behaviour of shopper who do not shop there
→ a compelling reason for a Buyer to see you is if you bring a Category U&A with ‘banner shopped at’ info!
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
11. Practical tips for dealing with a Buyer
D. What might sway a Buyer?
i. Support, Assured Availability
ii. A well supported case/pitch
iii. Respect
iv. Empathy/ Customizing
v. Certainty/Reliability
vi. Assured Availability
vii. Big Picture Insights
viii. Throw it back at’em
→ Let’s address each of these with a bit more info…
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
12. Practical tips for dealing with a Buyer
D. What might sway a Buyer? -start
i. Support, Assured Availability → suppliers must be alert to Buyer needs, ‘on call’
for their Buyer, react quickly to requests.
ii. A well supported pitch → preferably with third party data to support a
proposal. Must be complete eg including preparing the ‘admin box checking,
form-filling’ side of the process.
iii. Respect → respect them as a person, their role, their firm. Always be EARLY for
every meeting (even if Buyers in North America are routinely late to see you!).
Never betray a confidence. Never take advantage ie ‘pull a fast one’.
If you feel even a little bit tempted to…
Dump near-expiry stock?
Prioritize another customer ahead of them?
Veer from a product spec (ingredient %, declared pack weight, etc)?
→ Don’t!
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
13. Practical tips for dealing with a Buyer
D. What might sway a Buyer?-cont’d
iv. Empathy/ Customizing → eg if presenting Consumer
Research to HEB, you present TEXAS-only consumer
data, not data for ‘USA’ or ‘South Central USA’
(NB: this implies anticipating Buyer needs before a Consumer
research study is even started; Retailer needs should be part of
initial Sample Design & Study Approval; this means a
Manufacturer’s Sales Dept should be supported ie a budget,
access to the Research Dept, involvement in ‘Big Picture’ and
long term projects, not just tactically helped, after the fact)
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
14. Practical tips for dealing with a Buyer
D. What might sway a Buyer? –cont’d
v. Certainty/Reliability → eg the conduct of you & your firm must
never taint the customer. No public ‘issues’ or negative press!
Keep up on accreditations, certifications (ISO etc), Fair Trade &
Employment Equity promises, etc.
vi. Assured Availability → find a way to supply’em, never short’em.
Eg one Arkansas-based retailer expects 100.0% of orders to be
shipped complete and on-time. If you have more than one
manufacturing facility/warehouse, and about to miss an order to
the customer, shift those orders to another warehouse/facility.
Be ready to ‘eat’ the added Freight cost→ it’s your obligation,
per the ‘Service Mentality’
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
15. Practical tips for dealing with a Buyer
D. What might sway a Buyer? –cont’d
vii. Big Picture Insights → Category Captains are expected to conduct
‘category’ shopper research, identify emerging needs/trends, etc.
A Buyer needs at least one supplier to give a fresh POV periodically.
Help them stay current, bring insights-how their competitors are doing,
how often their shoppers are buying at competitors, how the industry is
changing, who is ordering online vs shopping in store, what’s occurring
in the Lead Market, etc
Case: A company pitching its Private Label (PL) supplier credentials to
Kroger was unsuccessful until a savvy Sales Pro measured the PL $
sales/store at Kroger vs other chains, showing how underdeveloped
Kroger’s PL sales/store were, vs competitors. The Buyer was furious
his Category Captain had never informed him of this Bigger Picture!
The savvy sales pro won the account and took on an unofficial
Category Captain role and position of trust with the Buyer.
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
16. Practical tips for dealing with a Buyer
D. What might sway a Buyer? –cont’d
viii. Throw it back at’em →a risky* way to try to sway a
Buyer is to mention the Buyer’s own company’s boasts
eg
“This Press Release says Dealing with Women-Owned Businesses
is a Top priority (for the Retailer)”; or
”The company committed to X% Sustainable offerings by 2024;
might that favour this new item?”.
*It’s risky because Buyers tend to have enough #&#!!# coming
down from above, without their own Suppliers piling on, too.
ie a cornered animal, is a dangerous animal.
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
17. Practical tips for dealing with a Buyer
E. How do I stay ‘current’ on all the above?
Immediate Opportunities
a. Get acquainted with a Buyer’s front desk team, Admin Assistant, etc→ front line folks can
update you on everything from staff changes, to priority changes, to Buyer schedule updates, to
what the Buyer’s mood is.
b. Read the Buyer’s Company’s Annual Report! A Buyer’s priorities may be impacted by Top-Down
edicts on what is now important (whether the Buyer wants to support those initiatives, or not!)
c. Read all the Buyer’s Company’s Press Releases (most banners have a ‘News’ or ‘Press’ site)
d. Set ‘alert’ keywords: Buyer’s company, Category, Competitors, Target segments (eg ‘GenY’ or
‘New Parents’ )
e. Check which LinkedIn Groups the Buyer belongs to / contributes to. Consider joining the Groups
f. Go to Trade Shows!
g. Subscribe to Newsletters & periodically visit Category news/publication sites
h. Read every Category shopper report you can for the item and the channel
i. When at a Buyer’s or Rep’s office, listen! (and limit what you say- the less said, the better)
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
18. Practical tips for dealing with a Buyer
E. How do I stay ‘current’ on all the above?
Big Picture, Longer Term Ideas
For an even ‘Bigger Picture’ view
• read about the Lead Market for the Category- find what is trending
there, consider whether, and to what extent, that same factor exist in
this market- does it apply here? (eg a trend to NonGMO, Grain-Free,
Scent-Free, etc). Lead Market examples: South Korea: personal Tech;
California: Fusion Cuisine; Norway: NonGMO; Canada: Maple Syrup
• monitor world logistics/ shipping news! eg South China Sea is a key
world container route, and military flashpoint that may explode into
conflict, thoroughly disrupting supply. 48’ trucks were the maximum
legal in most states ….until 52’ trucks were declared legal. Logistics
itself is an entire world of ongoing, sophisticated changes!
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.
19. SOURCES
• Steven Litt has called on Head Office Buyers at A&P, Big Lots, Costco,
H&D, Jean Coutu, Kroger, Lawtons, Loblaws, London Drugs, Metro,
Pathmark, PetSmart, Pet Valu, Provigo, Publix, Safeway Canada,
Shoppers Drug Mart, Sobeys, Tractor Supply Company, Wegmans,
Winn-Dixie…
• Steven Litt, StrategySteven.com accessed February 17, 2021 strategysteven.com
• Cover photo courtesy of Mandy S Photography
• Thanks to Jean-Francois McKay, Matt Goodwin & Sue Corbett of P&G, Brian
Richardson of Kimberly-Clark, Rick Franke of Alberto-Culver, Dan Mendoza,
Ann Mergelas & Cathy Miner of Schering-Plough; Josh Levi, Don Holmes &
Steve Rosenbaum of Alliance Data, Mike Habib of Kellogg,… and many other
Trade Marketing & Sales guru’s who patiently guided a Research/Marketing
guy in the professional way of Sales. And my everlasting respect to the late
Craig Bundrant for his inspiring leadership, mentoring, patience and creative
insights. You are so very sorely missed.
©2020 Steven Litt . All rights reserved. May not be scanned, copied, duplicated or posted publicly to a website in a whole or in part.