6 Steps to retail success
If you have an amazing organic product, but don’t know how to get to retail success, then this article is for you.
January 21, 2022
Having an amazing product is the first step towards success, but unfortunately, when it comes to retail, an amazing product is simply not enough, especially in a highly competitive retail market.
Warren Hickinbotham, Co-founder of Organic and Natural Products Portal Africa, and Luiza Tropartz, Head of Innovation and Merchandise at Faithful to Nature, presents the 6 Steps to Retail Success for your Organic and Natural Products in this session of the Virtual B2B Talkshop.
Watch: 6 Steps to Retail Success: https://youtu.be/ZriYfwnGhGs
Luiza Tropartz is the Head of Innovation and Merchandising at Faithful to Nature, but first…
Who is Faithful to Nature?
Faithful to Nature changes the way you shop – for good.
They have been helping South Africans shop online for natural and eco-friendly alternatives to all the products they use daily. With their ingredients policy, Faithful to Nature ensures that every product meets their golden eco-standard.
They have now turned that same level of care and attention to their own Faithful to Nature range.
According to Luiza there are 6 steps to getting your product to retail success.
What are the 6 steps to retail success?
1. Product Positioning:
Your product positioning must be in place to guide your product development process.
- Know your customer: It’s extremely important to know who your customer is. Know who you are targeting at. Define your customer’s profile, geographic location, family situation, disposable income etc.
- Know your market: Assess the market potential and competitive environment (market saturation, price points etc.)
Invest into market research papers and trend analysis reports. Research social media and follow influencers in your industry.
Be prepared to tweak your product based on geographic and cultural differences when going cross border.
It’s always a great idea to do some research into current market trends. Usually these are heavily category dependant e.g. health, natural, immunity, plant based, organic, etc.
2. Packaging and Design:
First impressions matter!
Get inspired from established and aspirational brands.
Don’t copy. Be unique.
Make your USP’s stand out:
- the need you are fulfilling
- trends you are in line with
- your brand story
3. Your Brand Story:
Your audience may forget what you say, but they will not forget how you made them feel.
It’s not enough to have a quality product or service, you need to be able to talk about it in a way that differentiates you from the rest of the crowd.
Consumers gravitate towards brands that feel human.
Turn your brand into an experience that can be consumed. Be authentic. Be honest. Be funny and be visual.
4. Ingredients and Formulations:
Drive customer retention via product satisfaction and consistent quality.
Appropriate product positioning, appealing packaging and design, and the relatable brand story will help you acquire customers.
Convert single ingredient products to innovative formulation via the addition of trend ingredients, e.g. 80% Raw Cacao Bar + Ashwaganda = Adaptogenic Chocolate Bar.
5. Product Value – Pricing:
A consistent pricing and promotions strategy conveys trust.
Pricing considerations:
- thorough cost analysis
- establish a price bracket within the competitive landscape
- where do you want to be positioned?
- can you charge a premium based on your USP’s
- consider indirect retail costs such as warehousing and marketing fees,
- be aware of expected retailer margins per product category.
Promotions are key to customer acquisition and retention. So, define your promotions strategy and structure (once off, event based and ongoing promotions).
Consider the costing differences for Online versus In-store promotions:
- Retail store – prime shelf space and tastings.
- Online – digital assets for website banners and social posts.
6. Supplier–Retailer Relationship:
Clearly defined and nurtured supplier-retailer relationships increase success rates.
Factors to consider apart from the usual T’s and C’s:
- Fill and deliver dates
- Lead times
- Price increase notices
- Swap of expired stock
- Minimum order values
Now that you know what the 6 steps are, you need to consider which of these you need to focus on more to strengthen your steps to retail success.
We highly recommend you pay a visit to Faithful to Nature’s website to get a feel of what and how they are implementing these factors online.
Keeping the Organic & Natural conversation going…
The Organic & Natural Virtual B2B Talk Shop takes place twice a year and brings together a mix of all industry stakeholders for two FREE days of conference and networking, with the opportunity to feature one’s company in a micro site on the platform.
The conference content covers an overview of the organic and natural sector delivered by Trade Intelligence, with insights from various retail buyers, distributors, tech enablers along the likes of e-commerce and marketing, and associations and government bodies offering support services to organisations in the sector.
Delegates are made up of suppliers in the sector ranging from fresh produce to food & beverage, as well as cosmetics and personal care, distributors, exporters, importers, and industry support bodies.
The Organic & Natural Products Portal Africa is an easy-to-use portal for both trade buyers and consumers to access Organic & Natural Products Expo information, as well as the company information of suppliers of organic and natural products in, and from, the African continent.
Get listed on the directory to gain exposure to thousands of trade buyers and consumers seeking products in your category.