Daniel Lohman, CPSA

A retailer’s product assortment will help define the store’s mission and their unique value proposition — how they differentiate themselves in the market.

• Have you ever wanted to maximize your product assortment?
• How do you choose the right assortment to generate increased foot traffic when you have a limited space?
• How do you choose the right mix of items to make your store stand out in a crowded market place?
• What tactics or strategies generate the highest return on… Show more

A retailer’s product assortment will help define the store’s mission and their unique value proposition — how they differentiate themselves in the market.

• Have you ever wanted to maximize your product assortment?
• How do you choose the right assortment to generate increased foot traffic when you have a limited space?
• How do you choose the right mix of items to make your store stand out in a crowded market place?
• What tactics or strategies generate the highest return on investment in each category?

Assortment refers to the variety of items on the retailer’s shelf. The right assortment can give a retailer a competitive advantage by offering consumers items they want and need. While each assortment should include top selling items in the market, it can also be a point of differentiation highlighting a retailer’s particular niche.

The right assortment will contain both brands and private label offerings for each category. Private label is a brand that typically has the retailer’s name on the package. Private label typically offers the retailer a greater margin with a reduced price point compared to the national brands. Show less

Organic products are fueling sustained sales growth across most every category, leading both natural and non-GMO (genetically modified organism) sales in many cases. They represent perhaps the single best opportunity for brands to drive profitable growth for themselves and their retail partners.

Total U.S. food sales (all outlets) were up only 1.9 percent in 2015 while organic sales were up 16.9 percent, according to Nielsen Answers (ending Oct. 24, 2015, total us food, drug, mass… Show more

Organic products are fueling sustained sales growth across most every category, leading both natural and non-GMO (genetically modified organism) sales in many cases. They represent perhaps the single best opportunity for brands to drive profitable growth for themselves and their retail partners.

Total U.S. food sales (all outlets) were up only 1.9 percent in 2015 while organic sales were up 16.9 percent, according to Nielsen Answers (ending Oct. 24, 2015, total us food, drug, mass, Wal-Mart, Sam’s, BJ’s, dollar stores and convenience). Organic products represent only 3.1 percent of total food sales. Natural product sales were up 11 percent and represent 7.7 percent of total food sales. Non-GMO sales were up 15.8 percent and represent 4 percent of total food sales. This is great news for organic brands and their loyal shoppers.

Consumers want healthy, clean label products that they can trust and confidently feed to their families. A growing number of shoppers place quality over price. This is especially true for organic products. Shoppers look to organic products to improve their health and wellness. Show less

Things are changing all the time, especially in natural. We’ve recently seen stories regarding Albertson’s in preliminary talks about a deal to acquire Sprouts, and Whole Foods Market partnering with Nielsen and Dunnhumby. This is the potential beginning to major shift in the way natural brands and retailers do business.

Advanced business strategies like category management will now be the norm rather than the exception. Natural organic brands and retailers are at a cross roads. They… Show more

Things are changing all the time, especially in natural. We’ve recently seen stories regarding Albertson’s in preliminary talks about a deal to acquire Sprouts, and Whole Foods Market partnering with Nielsen and Dunnhumby. This is the potential beginning to major shift in the way natural brands and retailers do business.

Advanced business strategies like category management will now be the norm rather than the exception. Natural organic brands and retailers are at a cross roads. They have an important choice to make; they can either lead, follow, or get out of the way. What I mean by this is simply, that they must adapt to a more strategic way of doing business than they are used to if they want to thrive and grow.

Let me help frame this to make it more relevant.

When I started my career many years ago the competitive landscape was very similar to the natural channel today. We did not have large national chains, only regional and local independents. The natural channel really did not exist back then, they were known as specialty or alternative retailers. Brands relied heavily on distributors to help get their products to market. Manufacturers had huge sales teams or brokers that literally called on every store, the same as in the natural channel today. Show less

Trade shows are an excellent opportunity for brands to showcase their new items to retailers and consumers. Retailers are always on the lookout for innovative new items their shoppers want. Trade shows provide an opportunity for retailers to shop natural organic brands in much the same way consumers shop their stores.

“You never get a second chance to disappoint a customer.” Exhibiting brands need to make a lasting impression on every retailer, blogger, customer, etc. They need to stand… Show more

Trade shows are an excellent opportunity for brands to showcase their new items to retailers and consumers. Retailers are always on the lookout for innovative new items their shoppers want. Trade shows provide an opportunity for retailers to shop natural organic brands in much the same way consumers shop their stores.

“You never get a second chance to disappoint a customer.” Exhibiting brands need to make a lasting impression on every retailer, blogger, customer, etc. They need to stand out against the competition and maximize every selling opportunity.

I’m always amazed by the number of exhibiting brands who run out of business cards and sales literature the first day. Several brands list “info” as their contact instead of a person or department ([email protected]). Exhibitors needs to make it easy for interested retailers/bloggers to learn about and buy their products.

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Most consumers are searching for healthier alternatives at restaurants and on their favorite retailer’s shelves. Sixty-six percent of consumers eat healthier in 2016 than they did before, according to Nielsen Answers, Wellness Track, Total U.S., All Outlets Combined, 52-weeks ending Jan. 23, 2016. This accounts for the increases in both the organic and non-GMO (genetically modified organism) segments, up 16 percent and 17 percent, respectively, according to Nielsen.

There's a lot of… Show more

Most consumers are searching for healthier alternatives at restaurants and on their favorite retailer’s shelves. Sixty-six percent of consumers eat healthier in 2016 than they did before, according to Nielsen Answers, Wellness Track, Total U.S., All Outlets Combined, 52-weeks ending Jan. 23, 2016. This accounts for the increases in both the organic and non-GMO (genetically modified organism) segments, up 16 percent and 17 percent, respectively, according to Nielsen.

There's a lot of confusion around the benefits and the differences between organic and non-GMO products. Most consumers believe non-GMO to be a healthy alternative to organic; this is not true. Non-GMO simply means that the seeds used to produce the crops were not genetically modified. Genetically modified crops were developed, in theory, to increase food yields and decrease costs for farmers. They were designed to be more pest- and weed-resistant. Organic products are non-GMO by default, but more importantly, they were produced without the use of herbicides and pesticides.

Using the adage, “You are what you eat" as a guide to help consumers decide which products best meet their nutritional requirements, they need to decide if they want products that are modified and/or produced with the use of harmful chemicals compared to products that are grown sustainably. Just as consumers worry about the quality of the water the plants absorb, they should also be concerned about chemicals that can be absorbed by the plant as well. This includes all pesticides and herbicides. Show less

The 2016 election taught us a lot about our country. We learned that there were large groups of people who felt unappreciated and ignored for many years, and people who felt that their voices were not heard in this year’s election.

I can boil this down just two single talking points: apathy and transparency.

Apathy: We learned that our vote matters, regardless which side of the aisle you’re on. There are some who spoke up for the first time ever and others who decided to stay home… Show more

The 2016 election taught us a lot about our country. We learned that there were large groups of people who felt unappreciated and ignored for many years, and people who felt that their voices were not heard in this year’s election.

I can boil this down just two single talking points: apathy and transparency.

Apathy: We learned that our vote matters, regardless which side of the aisle you’re on. There are some who spoke up for the first time ever and others who decided to stay home on election day.

This is similar to the way many consumers view the food they eat. While most take for granted the products that they consume, others diligently read product labels. We as consumers frequently overlook the fact that we vote for the items on retailer shelves with our dollars — the money we spend to buy the products we want. There’s a lot of power in that statement. A lot of retailers in large CPG companies spend a lot of money and work really hard to get us to buy items they want to sell. Frequently, this includes products that are not nutritionally sound. As consumers, we can dictate our preferences to retailers in the form of the products we choose to buy. For example, if shoppers chose to only purchase organic produce, then retailers would only stock organic produce. The same holds true in every category and with every retailer.

Consumers can also be apathetic about their choices including the ingredients found in their favorite brands. There is a big difference in the way the ingredients are produced and the nutritional value they offer in the end product. There’s also big a difference in where the ingredients are produced. Think of fine wines. We have all heard stories about how the grapes absorb certain characteristics unique to where they are grown. The same holds true for the foods we eat. This has a lot to do with why some produce is plump and juicy with vivid colors while similar items can be dull and bland in appearance at other retailers. Show less

The 2016 election taught us a lot about our country. We learned that there were large groups of people who felt unappreciated and ignored for many years, and people who felt that their voices were not heard in this year’s election.

I can boil this down just two single talking points: transparency and authenticity.

Apathy: We learned that our vote matters, regardless which side of the aisle you’re on. There are some who spoke up for the first time ever and others who decided to… Show more

The 2016 election taught us a lot about our country. We learned that there were large groups of people who felt unappreciated and ignored for many years, and people who felt that their voices were not heard in this year’s election.

I can boil this down just two single talking points: transparency and authenticity.

Apathy: We learned that our vote matters, regardless which side of the aisle you’re on. There are some who spoke up for the first time ever and others who decided to stay home on election day.

This is similar to the way many consumers view the food they eat. While most take for granted the products that they consume, others diligently read product labels. We as consumers frequently overlook the fact that we vote for the items on retailer shelves with our dollars – the money we spend to buy the products we want. There’s a lot of power in that statement. A lot of retailers in large CPG companies spend a lot of money and work really hard to get us to buy items they want to sell. Frequently, this includes products that are not nutritionally sound. As consumers, we can dictate our preferences to retailers in the form of the products we choose to buy. For example, if shoppers chose to only purchase organic produce, then retailers would only stock organic produce. The same holds true in every category and with every retailer.

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If a shopper sees that your natural store carry the brands they love at a competitive price, they will assume that all of your items are priced competitively.

Whole Foods recently announced a national campaign to lower prices to be more competitive. They're trying to move away from the stereotype of “Whole Paycheck”.

There's no way that smaller independent retailers can compete effectively playing the pricing game. Larger retailers have a lot more buying power and they also have… Show more

If a shopper sees that your natural store carry the brands they love at a competitive price, they will assume that all of your items are priced competitively.

Whole Foods recently announced a national campaign to lower prices to be more competitive. They're trying to move away from the stereotype of “Whole Paycheck”.

There's no way that smaller independent retailers can compete effectively playing the pricing game. Larger retailers have a lot more buying power and they also have the ability to deep discount specific items. This also means retailers and brands need to be more creative in their promotion strategies so that they products don't look and feel the same at every store.

To further complicate things, Wal-Mart has launched a pricing strategy whereby if they find an item that you purchased from them at a lower advertised price from any retailer in the market, they will automatically refund you the difference, even after the sale. This level of price competitiveness is unparalleled. It is no longer the shopper’s responsibility to price shop; Walmart does everything for you.

This means that when natural retailers promote an item, the advertised price must be competitive. But this will dramatically change the way natural retailers promote in their weekly circulars. Natural manufacturers should work closely with natural retailers to help them stay current with market pricing.

The good news is that this only affects advertised items. Remember that Walmart cannot compete on price against an item they don't sell. This gives natural retailers an opportunity to be creative when it comes to their selection and internal promotion strategies.

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Gaining the right distribution in the right stores is perhaps the most critical component of a successful brand strategy. Here's how you can do it.

You worked hard to develop your product and get it into the marketplace, and now gaining distribution at key retailers is the blueprint to your brand’s success. So how do you identify the best stores to carry your product?

Define core consumers

First you need to identify who your core consumers are -- not just your target… Show more

Gaining the right distribution in the right stores is perhaps the most critical component of a successful brand strategy. Here's how you can do it.

You worked hard to develop your product and get it into the marketplace, and now gaining distribution at key retailers is the blueprint to your brand’s success. So how do you identify the best stores to carry your product?

Define core consumers

First you need to identify who your core consumers are -- not just your target customers, but those who are most likely to buy your product. What is their demographic makeup? Do they come from large families? Do they have a high income? Are they college-educated? What is their ethnicity? These are all important questions that will help you develop a solid marketing strategy that communicates the value as well as the benefits of your brand.

Identify key retailers

Next you need to identify markets/retailers with a similar demographic makeup. There are many tools available to help in this endeavor; Spectra is perhaps the most robust of them. It can help you pinpoint the best retailers/stores that match your target demographic footprint.

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Retailers must shift from a transactional-based communication strategy to more complete customers solutions as newly empowered shoppers research products and prices online and creating their own supply chains.


Natural brands and manufacturers need to stay relevant in today's ever-changing world if they hope to effectively compete and survive. A strong digital strategy can provide a significant competitive advantage. An effective digital strategy develops and maintains a one-on-one… Show more

Retailers must shift from a transactional-based communication strategy to more complete customers solutions as newly empowered shoppers research products and prices online and creating their own supply chains.


Natural brands and manufacturers need to stay relevant in today's ever-changing world if they hope to effectively compete and survive. A strong digital strategy can provide a significant competitive advantage. An effective digital strategy develops and maintains a one-on-one relationship between the brand and the consumer and has the capability of influencing a consumer’s network of friends and family.

As consumers, we are bombarded by an overwhelming amount of information. Everybody is trying to get our attention. The marketplace is extremely crowded, and our attention spans are shorter than ever. Yesterday's news is constantly being eclipsed by whatever is trendy or relevant. Yesterday’s fad is quickly forgotten by today’s “overnight successes” or flavor of the moment. The retailers and brands who capture and keep our attention remain relevant and thus have the greatest opportunity to sell to us and our network of friends.

Natural Products Expo East this year made this phenomenon a priority with an educational session titled Digital Strategies: Using Digital Influences to Sell More Natural Products. The session was led by industry thought leader and expert Bill Bishop from Brick Meets Click.

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Continue education and develop business sense through tools such as Expo East 2014 and next accelerator.

Imagine the impact and the potential value of having a top business coach at your fingertips anytime you have a question. Better yet, imagine having several business coaches/mentors who are all respected industry experts available to answer most any business question you have. With the Next Accelerator, that is exactly what you get.

My last article talked about the importance… Show more

Continue education and develop business sense through tools such as Expo East 2014 and next accelerator.

Imagine the impact and the potential value of having a top business coach at your fingertips anytime you have a question. Better yet, imagine having several business coaches/mentors who are all respected industry experts available to answer most any business question you have. With the Next Accelerator, that is exactly what you get.

My last article talked about the importance of continuing education for both manufacturers and retailers to remain competitive and to be successful. Natural Products Expo East is an excellent place for manufacturers and retailers to keep current on trends in the marketplace, competitive threats, new products, better ways to grow sales and how to connect your brand to shoppers.

The Next Accelerator just announced that it is offering free registration. The Next Accelerator is offered by New Hope Natural Media. It is an invaluable resource connecting the top industry experts and thought-leaders with brands at all levels of development. It includes a huge library of resources answering most every question any entrepreneur might have from raising seed capital to supporting a new product idea to gaining incremental distribution at top retailers. Next Accelerator subscribers can watch short video clips and read impactful articles on a variety of topics.

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Does a successful merchandising strategy involve integrating or segregating your product mix? It’s a hot debate, but I think there’s a clear winner.

First, the basics. Categories are divided into segments and segments are defined by the way the consumer shops the category. For example, powder or liquid laundry detergent. These decisions make up the consumer decision tree, the choices the consumer makes when making a purchasing decision.

Knowing how the consumer shops the category… Show more

Does a successful merchandising strategy involve integrating or segregating your product mix? It’s a hot debate, but I think there’s a clear winner.

First, the basics. Categories are divided into segments and segments are defined by the way the consumer shops the category. For example, powder or liquid laundry detergent. These decisions make up the consumer decision tree, the choices the consumer makes when making a purchasing decision.

Knowing how the consumer shops the category will help retailers develop an effective merchandising strategy. This is information that should be supplied by the manufacturer, assuming it knows its customers’ needs.

How consumers shop

Think about how your customers shop the store. Do customers only see items that are at least 70 percent natural/organic or do they see all of the items in the category?

Think of the decisions and the choices every consumer makes when buying cereal. Do they want adult or kids cereal? Do they want healthy cereal? Oats or bran flakes? Processed or natural grain? Mainstream or conventional? With or without fruit? Hot or cold? Ready-to-eat or something that needs to be cooked? Packaged in a bag or a box? They will also consider the quality of the brand either economy, premium, or super-premium.

The choices can seem endless but the savvy retailer will merchandise products that help consumers wade through the choices more easily.

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Natural Products Expo East offers education opportunities within the natural products industry, providing a platform to learn from industry experts about natural trends, growing sales, products, labeling, insights, strategies and services that consumers want and need.

We live in a culture of change—especially those of us in the natural channel. Our thirst for knowledge keeps us young and vibrant. The natural channel is built on disrupting the status quo and improving lives with quality… Show more

Natural Products Expo East offers education opportunities within the natural products industry, providing a platform to learn from industry experts about natural trends, growing sales, products, labeling, insights, strategies and services that consumers want and need.

We live in a culture of change—especially those of us in the natural channel. Our thirst for knowledge keeps us young and vibrant. The natural channel is built on disrupting the status quo and improving lives with quality healthy products, repairing the damage to our planet, making a sustainable difference in our community, and creating a better world for future generations. Education is at the heart of all we do.

There is an easy way and a hard way to do just about anything. Learning never ends as we strive to anticipate and exceed meeting the needs of our customers while we grow sustainable sales by providing products and services that consumers want and need. We can learn the hard way through trial and error or we can learn from others. The latter is much easier and more effective—especially when the advice comes from trusted and respected industry experts.

The show floor of the Natural Products Expo East is where ideas are shared and cultivated. Everything from the “next big thing” to new product trends are introduced. Education on the show floor typically comes in the form of brands educating prospective retailers, distributors, and other industry experts on the merits of their products and solutions. This is where the brands (exhibitors) become the teachers and the show attendees become the students.

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Amplify the strength of your product by proving the quality, ingenuity, and benefits provided by your business. Brand health is calculated by the amount of trust and confidence consumers have in it, and it's measured by your distribution and your sales. Networking and relationship building with retailers will exponentially increase your brand health.

Brand health is the strength of your brand. It’s calculated by the amount of trust and confidence consumers have in it. It’s measured by… Show more

Amplify the strength of your product by proving the quality, ingenuity, and benefits provided by your business. Brand health is calculated by the amount of trust and confidence consumers have in it, and it's measured by your distribution and your sales. Networking and relationship building with retailers will exponentially increase your brand health.

Brand health is the strength of your brand. It’s calculated by the amount of trust and confidence consumers have in it. It’s measured by your distribution and your sales—yourACV (all commodity volume). Effectively it’s what you take to the bank. Natural Products Expo East can help you dramatically improve your brand health by connecting you with key natural products retailers and natural and organic industry experts.

Let me explain.

Have you ever heard of Dan’s Crunchy Granola? Probably not; I just made it up. The point: If I take my new brand to a health food store and ask the retailer to put it on its shelves next to other products, I’m expecting the store to take a risk on an unknown and unproven brand. Anything that I can do to help demonstrate and amplify the strength of my brand, the quality of my products and my brand’s ability to drive category sales will help me get it on the retailer shelves. Natural Products Expo is a strategic way to turbocharge the process of building a brand through exposure to key retailers looking for innovative ways to increase sales.

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Shelf presence is one of the most important marketing tools to ensure your brand’s success.

You worked hard to develop your product and get it into the marketplace. Gaining distribution at key retailers is the blueprint to any brands success. So how do you identify the best stores to carry your product?

First you need to identify who your core consumers are, not just your target customer, but who is most likely to buy your product. What is their demographic makeup? Do they come… Show more

Shelf presence is one of the most important marketing tools to ensure your brand’s success.

You worked hard to develop your product and get it into the marketplace. Gaining distribution at key retailers is the blueprint to any brands success. So how do you identify the best stores to carry your product?

First you need to identify who your core consumers are, not just your target customer, but who is most likely to buy your product. What is their demographic makeup? Do they come from large families? Do they have a high income? Are they college-educated? Do they have a large family? What is their ethnicity? These are all important questions that will help you develop a solid marketing strategy that communicates the value as well as the benefits of your brand.

Next you need to identify markets/retailers with a similar demographic makeup. There are many tools available to help in this endeavor. Spectra is perhaps the most robust tool. It can help you pinpoint the best retailers/stores that match your target demographic footprint. This will help ensure your brand’s success with your core consumers.

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Go beyond natural product sales snapshots and nip threats in the bud. The right reports will help you proactively manage your natural foods business and beat your competition.

Top-line business reports are useful. The reports give you a quick snapshot of how the natural category and your brand are performing. They also provide you with a quick look at your competition, their sales performance, the market and anything that might affect your sales. At first glance, top-line reports will… Show more

Go beyond natural product sales snapshots and nip threats in the bud. The right reports will help you proactively manage your natural foods business and beat your competition.

Top-line business reports are useful. The reports give you a quick snapshot of how the natural category and your brand are performing. They also provide you with a quick look at your competition, their sales performance, the market and anything that might affect your sales. At first glance, top-line reports will answer some of your questions. Unfortunately, top-line reports are designed to work for everyone equally—including your competition. Top-line reports don’t provide you with the bigger picture and do not give you the competitive advantage you need.

The challenge is that your business is a lot more complex than any canned or top-line reports can address. Top-line or canned reports are very generic and do little to answer most business questions. Imagine reading a report that tells you that your business is healthy nationally but fails to identify threats and specific markets where you're losing share to your competition. Wouldn't it be more helpful to identify a potential threat before the competitors take your sales? The right reports will help you proactively manage your business and beat your competition.

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Collaboration and cooperation between natural products brands and retailers are crucial in order for each to stay ahead in an increasingly competitive marketplace.

Natural brands are the lifeblood of the natural retailer. Natural brands owe their existence to the retailers that sell their products. They are equally important to each other and they arecritical to each other’s survival and growth.

Competition continues to heat up in natural, especially for natural products… Show more

Collaboration and cooperation between natural products brands and retailers are crucial in order for each to stay ahead in an increasingly competitive marketplace.

Natural brands are the lifeblood of the natural retailer. Natural brands owe their existence to the retailers that sell their products. They are equally important to each other and they arecritical to each other’s survival and growth.

Competition continues to heat up in natural, especially for natural products retailers.Mainstream retailers pose a huge threat. For this reason, now more than ever, brands need to work closely with their retail counterparts.

Mainstream retailers continue to cherry-pick top-selling natural products to bring new shoppers into their stores/sites. In some cases they include top trending natural products as part of their marketing strategy to gain loyal shoppers—like Target’s recently announced Made to Matter program. Shopper convenience is these stores’ primary selling point. Shoppers can now buy their favorite natural products at the same time they shop for back-to-school specials. Some retailers will even do the shopping for you and then bring your groceries to your car in their parking lot or to your home.
The greatest strength that a natural retailer has is its ability to provide personal customer service. It's that special relationship with their shoppers that differentiates them from other competitors and keeps loyal shoppers coming back. The trust that exists between those shoppers and the retailer are the greatest selling vehicle for natural products. A product recommendation from a respected and trusted retail sales person can go a long way to helping launch a new product—the product that might otherwise be overlooked in a traditional retail store.

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A new Nielsen study points out the qualities and tactics that are key to brands that move from a shelf newbie to longtime consumer favorite. Is your company hitting all these marks?



New product innovation is the fuel that's growing natural product sales. This is at the heart of all of my articles - natural products driving sustainable category growth. This is because naturals have a close relationship to their core shoppers. Nielsen's most recent The U.S. Breakthrough Innovation… Show more

A new Nielsen study points out the qualities and tactics that are key to brands that move from a shelf newbie to longtime consumer favorite. Is your company hitting all these marks?



New product innovation is the fuel that's growing natural product sales. This is at the heart of all of my articles - natural products driving sustainable category growth. This is because naturals have a close relationship to their core shoppers. Nielsen's most recent The U.S. Breakthrough Innovation Report validates this point. While their report did not specifically compare natural products to mainstream products, it did highlight several of the key areas in which natural products excel.

My favorite quote from the article is: “Embrace the humility principle of innovation: Marketers don’t define innovation, consumers do.” The customer is always king. I cannot say this enough! It never ceases to amaze me how so many manufacturers and retailers overlook this simple truth. Companies that focus on the customer’s needs first will win in any economy and in any channel. This is perhaps the greatest strength of natural product manufacturers and retailers. Their relatively small size and their ability to remain connected to their core customers gives them a substantial competitive advantage. In contrast, their larger counterparts are typically very siloed and disconnected from the end consumer.

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The secret to success for most items is that they are easily found by consumers wanting to buy them. Simply put, if your item isn’t on the shelf,consumers can’t buy it. This is true for items across the entire chain.

Discipline at shelf means having a merchandising plan that meets your customers needs and wants. Shelf refers to the retail displays that showcase the items available for sale. Having the right assortment, or product mix, is what drives sales and ultimately satisfies… Show more

The secret to success for most items is that they are easily found by consumers wanting to buy them. Simply put, if your item isn’t on the shelf,consumers can’t buy it. This is true for items across the entire chain.

Discipline at shelf means having a merchandising plan that meets your customers needs and wants. Shelf refers to the retail displays that showcase the items available for sale. Having the right assortment, or product mix, is what drives sales and ultimately satisfies consumers and keeps them coming back. Another important factor is ensuring that you have the right quantity on the shelf. Not enough of an item can lead to out-of-stocks while too much will limit your selection and increase your inventory costs. The item cost ratio is referred to as an items space to sales. The object is to maximize your space to sales for each item, category, and for the entire store. This will be the focus of future articles.

From the retailer perspective, having top-selling items available for sales in every category will help drive customer traffic into your store while keeping those same consumers from shopping your competition. Discipline at shelf will help you accomplish these goals. Discipline at shelf ensures that your core shoppers will be able to find the items that they are looking for in each of your retail locations. Discipline at shelf also gives your stores a familiarity that consumers will respond well to, making your stores easier to shop. Discipline at shelf will not limit your ability to offer those unique items that differentiate your chain (an important attribute in the natural channel). You simply need to have the proper mix/assortment of items to drive sales, satisfy customers, and help you remain competitive.

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How do you evaluate the support you’re getting from your consultant?
Do they provide actionable insights and recommendations?
Is your consultant a certified professional?
Do they think out-of-the-box or are they using an outdated template?
I’ve seen several examples of presentations created by well-meaning “consultants” complete with impressive charts and graphs that ultimately say nothing. One presentation praised the brands strength and growth across the country while it… Show more

How do you evaluate the support you’re getting from your consultant?
Do they provide actionable insights and recommendations?
Is your consultant a certified professional?
Do they think out-of-the-box or are they using an outdated template?
I’ve seen several examples of presentations created by well-meaning “consultants” complete with impressive charts and graphs that ultimately say nothing. One presentation praised the brands strength and growth across the country while it neglected to communicate real threats in one of the largest emerging markets for that brand. It included a lot of the authors bias making points that were not relevant and pertinent to the manufacturer or the category.

While most would say this is good information, I would argue that it did not provide strong business intelligence or actionable insights. The presentation essentially patted the brand on the back saying, “good job” while ignoring real competitive threats that were undermining the brands strengths in several major markets. Without proper intervention, the competitor would have eroded or taken significant share from the manufacturer.

So how do you ensure that you get the support you need to grow your brand? At the bare minimum, you should always expect and demand strategic solutions and actionable insights. In the example above, the manufacturer paid a lot of money for a well packaged basic report that did not meet the brand’s needs. It failed to provide any strategic objectives. Had the manufacturer used a more experienced consultant, they would have received the support they desperately needed.

Another disturbing trend is a consultant pushing their hidden agenda and including their own bias in a presentation. Be cautious of those trying to sell an concept or idea that is not relevant to the project.

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Both consumers and retailers now have more information at their fingertips than ever before. How is your store meeting shopper needs in the digital age?



The term customer centricity has become very popular in the CPG industry. Some companies use it the way others use the term “natural." As a result, its meaning is dramatically diluted.

I grew up with the expression that if you wanted to understand somebody you needed to walk a mile in their shoes. This expression has… Show more

Both consumers and retailers now have more information at their fingertips than ever before. How is your store meeting shopper needs in the digital age?



The term customer centricity has become very popular in the CPG industry. Some companies use it the way others use the term “natural." As a result, its meaning is dramatically diluted.

I grew up with the expression that if you wanted to understand somebody you needed to walk a mile in their shoes. This expression has always kept me well-grounded and is at the center of my articles.

To me the term consumer centricity is synonymous with authenticity, transparency and integrity. The term speaks to the heart of the natural channel’s ability to innovate and take a leadership role in new product trends.

Consumers today are smarter and more knowledgeable than at any other time in our history. Most of us carry smartphones capable of delivering tremendous insights about the products we're interested in, and how shoppers consume them. For example, the term “farm raised” printed on a package used to be enough to encourage purchase. Today, however, some companies are capable of telling you which farmer produced the product, the methods they used to farm (organic, non-GMO, etc.), the farmers' commitment to their community, their history of sustainable farming practices, etc. Consumers want to know what's in their food, how it was produced along with detailed information about all of its ingredients.

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Weigh In: As a smaller store, how can I address product exclusives being given to larger competitors? Three experts offer ideas.

It’s a common complaint among small, independent natural retailers: Manufacturers give product exclusives only to the big guys, leaving them to play catch up. This is aggravating, especially when it involves a once-small natural brand that has grown and spread its reach into the conventional channel. So what can you do? Two experts offer their top tips for… Show more

Weigh In: As a smaller store, how can I address product exclusives being given to larger competitors? Three experts offer ideas.

It’s a common complaint among small, independent natural retailers: Manufacturers give product exclusives only to the big guys, leaving them to play catch up. This is aggravating, especially when it involves a once-small natural brand that has grown and spread its reach into the conventional channel. So what can you do? Two experts offer their top tips for navigating these situations. Here's what our experts had to say on the issue:

CPG Strategic Adviser

Don’t blame manufacturers. It’s not that brands are unwilling to work with smaller stores. Rather, because the natural channel is so fragmented, retailers don’t make it easy for brands to craft these programs. So you can’t really blame them for partnering with larger competitors. If Target were to put a new Clif Bar SKU on its shelves, waive some fees and make a big to-do about it nationally, I think Clif Bar would be unwise to say no.

Educate, don’t alienate. If a customer comes in looking for a product offered exclusively at a competitor, never complain to her about the fact that you don’t have it. I’ve heard retailers turn these situations into therapy sessions for themselves rather than taking the opportunity to educate and engage with shoppers. Point out similar products that they might like instead. Even if they don’t end up buying, you’ve shown them that you care.

Think post-exclusive. I’ve read about natural retailers that have discontinued natural brands because they’ve offered exclusives with Target. They’re trying to be “authentic,” so they rail against some very good—and popular—products. That’s exactly what Target wants—for them to get scared and run. If consumers love the product, get it in after the exclusive. They’ll be happy they can now buy it from you instead of a big-box store.

–Daniel Lohman owner of Category Management Solutions in Littleton, Colorado
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Stocking the right assortment of products is key to happy, loyal customers. Here's how to go about making sure your store has the variety and quantity of products to fulfill consumer demand.

The majority of projects I do for both retailers and manufacturers focus on category product assortment. With each project I find tremendous assortment voids at the category level in both the retailer and in the market. These voids (or missed sales) are worth tens of thousands of dollars per category… Show more

Stocking the right assortment of products is key to happy, loyal customers. Here's how to go about making sure your store has the variety and quantity of products to fulfill consumer demand.

The majority of projects I do for both retailers and manufacturers focus on category product assortment. With each project I find tremendous assortment voids at the category level in both the retailer and in the market. These voids (or missed sales) are worth tens of thousands of dollars per category in each and every store.

Just to be clear, I would never recommend that retailers become a carbon copy of their competition. I'm talking specifically about missed opportunities for natural retailers to capitalize on new trends in the marketplace. Missed opportunities are similar to out-of-stocks, they encourage consumers to shop your competition.

Most natural retailers stock between 5,000 and 30,000 SKU’s, or more. They need to choose their selection from potentially several hundred thousand available items in the natural channel. It's unrealistic to expect a retailer to be an expert in all of the items their store sells including what’s being sold in the market. Even the larger retailers struggle with this - including those in mainstream. The best strategy for a store to effectively manage its assortment is to do so with the help of the leading manufacturers from each category. I recommend the retailer also use third party validators to help provide them with an unbiased product selection that will truly grow the category and increase foot traffic.

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With mass-market influence in natural on the rise, take note of these five strategies to turn occasion shoppers into loyal consumers.

As Kroger, Target, and Wal-Mart pledge to take the lead in natural products retail, it's another reminder for natural retailers to unite in order to stay relevant—and in business.

Their recent announcements mean greater opportunities for top-selling brands to be represented at their stores. While I applaud their commitment to natural brands, their… Show more

With mass-market influence in natural on the rise, take note of these five strategies to turn occasion shoppers into loyal consumers.

As Kroger, Target, and Wal-Mart pledge to take the lead in natural products retail, it's another reminder for natural retailers to unite in order to stay relevant—and in business.

Their recent announcements mean greater opportunities for top-selling brands to be represented at their stores. While I applaud their commitment to natural brands, their success could potentially stifle local and national natural retailers' growth. This will also have a dramatic impact on small local and regional natural brands.
Mainstream retailers cherry-pick the top-selling natural brands in addition to providing a wide variety of natural private label items. Their reach and their ability to connect with consumers is far greater than even Whole Foods Market.

This is an unparalleled threat to the natural products industry. Kroger has some of the strongest consumer loyalty rates in the entire food industry. Their true strength is converting consumers to loyal shoppers. It's time that natural retailers maximize each and every selling opportunity. This means turning occasional shoppers into committed loyal shoppers.

Focus on five key strategies

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Don't let fears about stocking, distribution and pricing keep you up at night. Follow these four solutions to stem the issue before it starts.

Have you ever wished for a "do over"? Have you ever wanted to undo a business mistake? Have you ever agonized over a decision only to make the wrong choice?

Hindsight is 20/20. While it's easy to be a Monday morning armchair quarterback, decisions made down on the field are a lot more complicated.

Predicting demand (consumer… Show more

Don't let fears about stocking, distribution and pricing keep you up at night. Follow these four solutions to stem the issue before it starts.

Have you ever wished for a "do over"? Have you ever wanted to undo a business mistake? Have you ever agonized over a decision only to make the wrong choice?

Hindsight is 20/20. While it's easy to be a Monday morning armchair quarterback, decisions made down on the field are a lot more complicated.

Predicting demand (consumer take-away) and planning effective promotions can be extremely challenging, especially for a new brand. However, this does not need to keep you up at night.

The biggest challenges in natural are inconsistent distribution (items with spotty distribution throughout the chain), inconsistent and confusing merchandising (items not merchandised the ways consumers shop), and inconsistent promotion/pricing. Solving these problems will help regulate supply and improve customer takeaway. Solving these problems will give your brand/store consistent messaging to consumers: we are the go to destination for "As seen on TV".

Four easy solutions:

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You’ve worked hard to develop a great product that will revolutionize the category and meet unmet consumer needs. You’ve managed to gain distribution at key retailers and consumers love your product. So what are you doing to keep your product on the retailer’s shelves?



Most manufacturers and retailers put all their effort and energy into getting a product on the shelf. Few put as much energy into keeping it there. This is a huge mistake that can ultimately affect the strength of… Show more

You’ve worked hard to develop a great product that will revolutionize the category and meet unmet consumer needs. You’ve managed to gain distribution at key retailers and consumers love your product. So what are you doing to keep your product on the retailer’s shelves?



Most manufacturers and retailers put all their effort and energy into getting a product on the shelf. Few put as much energy into keeping it there. This is a huge mistake that can ultimately affect the strength of your entire brand portfolio.

Getting the product on the shelf is sometimes easier than keeping it there. Some manufacturers rely on brokers and distributors to manage their distribution. While this can be an effective strategy to getting your product on the shelf, it is not necessarily the best strategy to manage the an on-going relationship with the retailer. For this reason, I recommend that manufacturers partner with their brokers and distributors to work closely with the retailer to help support your brand. Together, you can aggressively work to develop, implement, and execute strategies to grow sustainable sales for both you and the retailer. You can leverage their strengths to maximize your growth.

Retailer shelf space is limited and competition for that space is fierce. Manufacturers who don’t continually work to support their distribution and meet consumer needs will soon find their products in jeopardy of being discontinued to make room for new items. Manufacturers need to remember that retailers are continually bombarded with new item requests. Manufacturers willing to take a leadership role in the category will be viewed as trusted consultants to their retailer partners.

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Natural products retailers are facing a new level of competition from conventional and mainstream retailers, according to Natural Foods Merchandiser's recent Market Overview. Here's what the independents should do about it.

Natural Food Merchandiser's annual Market Overview took place last week and almost the entire webinar focused primarily on competitive threats facing natural retailers. At the heart of the discussion was an overview on how both Kroger and Walmart are capitalizing on… Show more

Natural products retailers are facing a new level of competition from conventional and mainstream retailers, according to Natural Foods Merchandiser's recent Market Overview. Here's what the independents should do about it.

Natural Food Merchandiser's annual Market Overview took place last week and almost the entire webinar focused primarily on competitive threats facing natural retailers. At the heart of the discussion was an overview on how both Kroger and Walmart are capitalizing on natural product trends to drive sales in their stores.

Bill Crawford, the Director of Retail and Custom with New Hope Natural Media, provided the industry overview from NFM's recent survey of more than 400 retailers, while Joe Dobrow, author of Natural Prophets, provided insights about the competitive threat from conventional/mainstream retailers. Together they gave a great overview of the natural channel and the competitive landscape.

I wish they had included in their survey questions about how consumers shop. Specifically, where do natural product shoppers purchase the bulk of their natural product staples? Consumers have learned to cherry-pick different retailers to fulfill different needs. What's most likely the case is that consumers are buying more of their natural product staples from mainstream retailers and shopping natural product retailers for their specialty items - items not available at mainstream retailers.

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Daniel Lohman CPSA, June 30, 2014 by worldallianceblog.

Consumers don’t shop only one category at a retailer. They shop multiple categories on each shopping trip. The items they place in their shopping cart represent a wide selection of products available at the retailer. This is called the Store yellowmarket basket. There’s a tremendous opportunity to better understand consumer shopping behavior and take full advantage of this important phenomenon. The goal is to have consumers… Show more

Daniel Lohman CPSA, June 30, 2014 by worldallianceblog.

Consumers don’t shop only one category at a retailer. They shop multiple categories on each shopping trip. The items they place in their shopping cart represent a wide selection of products available at the retailer. This is called the Store yellowmarket basket. There’s a tremendous opportunity to better understand consumer shopping behavior and take full advantage of this important phenomenon. The goal is to have consumers purchase more of the items on their shopping list in your store and not with your competitors. This can be accomplished through cross category promotion.

Smaller manufacturers don’t always have the ability to promote across different categories or brands given their limited product selection and buying power. In addition, small manufacturers don’t always have the relationships or network to effectively promote with complementary items. This is where the savvy retailer can help.

Larger CPG companies are able to take advantage of these synergies to help grow sustainable sales for their brands as well as the retailer. There have been countless market basket studies performed that highlight the value of promoting items together across categories. For example, promoted diapers might achieve a 175% lift (sales increase). Promoted baby wipes might achieve a 125% lift. But, when promoted together the two items might achieve a 240% left. That means that when both diapers and wipes were found in the same customer’s shopping basket, they spent more money at that retailer. This is in addition to all of the other items in their shopping basket – soup, milk, eggs, bread, etc. This is why families are such good customers.

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SchematicShelf Management

Shelf management includes product placement and merchandising on retailer shelves. Specifically it helps the retailer maximize sales per linear foot, drive foot traffic to stores, increase customer shopping basket size, and have a competitive advantage in their marketplace. A retailer’s merchandising

strategy will communicate their marketing strategy to shoppers.

Effective self-management strategies can be used to communicate a consistent message… Show more

SchematicShelf Management

Shelf management includes product placement and merchandising on retailer shelves. Specifically it helps the retailer maximize sales per linear foot, drive foot traffic to stores, increase customer shopping basket size, and have a competitive advantage in their marketplace. A retailer’s merchandising

strategy will communicate their marketing strategy to shoppers.

Effective self-management strategies can be used to communicate a consistent message to your customers highlighting your commitment to meet their needs. It can differentiate you from your competition. Product placement is critical. Consumers want stores that are easy and friendly to shop. They want to find their favorite brands at a fair price

Merchandising/distribution is the top priority for any brand. Getting a product on the shelf in the right place and at the right sores is key to any brand’s success. Most retailers merchandise items grouped by brand to make categories easy to shop. This strategy allows consumers to more easily compare like items.

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The cornerstone of retail are the “4P’s”; product, placement, promotion, and pricing. The perfect balance of these will increase consumer traffic in your shopperstore, build consumer loyalty, and help you remain competitive in any economy.

The challenges for some retailers is that they are so focused on the 4P’s that they overlook the fifth, people. Retailers focused on people (the customer) are committed to making the shoping experience more enjoyable and easier for their loyal… Show more

The cornerstone of retail are the “4P’s”; product, placement, promotion, and pricing. The perfect balance of these will increase consumer traffic in your shopperstore, build consumer loyalty, and help you remain competitive in any economy.

The challenges for some retailers is that they are so focused on the 4P’s that they overlook the fifth, people. Retailers focused on people (the customer) are committed to making the shoping experience more enjoyable and easier for their loyal customers. They put the consumer first – always. Retailers would not exist without customers.

Retailers and manufacturers who are able to build a strong relationship with their customers have a tremendous competitive advantage.

Some mainstream retailers rely on club cards and loyalty cards to connect with their core customers. This can be a very effective strategy if managed properly. Their programs reward their loyal customers for shopping at their stores. Some provide discounts, reduced gasoline prices, special incentives, and custom couponing. The programs do a good job keeping the retailer connected with the consumers through regular mail, emails, phone apps, etc.

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The natural channel is the incubator, or the R&D department, of the natural products industry, and all of that will be on display at Natural Products Expo East in September. The show will be an opportunity to see the latest innovative products and product trends before they hit the shelves at your favorite natural store.

It's always exciting to see the new products at Expo. I saw everything from ground-up bug guts to dancing monkeys at Expo West in March. Perhaps the most exciting thing… Show more

The natural channel is the incubator, or the R&D department, of the natural products industry, and all of that will be on display at Natural Products Expo East in September. The show will be an opportunity to see the latest innovative products and product trends before they hit the shelves at your favorite natural store.

It's always exciting to see the new products at Expo. I saw everything from ground-up bug guts to dancing monkeys at Expo West in March. Perhaps the most exciting thing for me about the natural channel is the ability for a creative person to turn an idea into a viable product in an extremely short amount of time. For example, MegaFood turned a concept into a new product in just a few months - and launched at Expo West. Their new product, MegaFood Boosters are an innovative new solution to help improve your life with quality whole food supplements that can be easily added to smoothies. There were hundreds of other stories of brands capitalizing on consumer trends by differentiating themselves with new and innovative flavors, aromas, and product features.

Innovation like this in mainstream typically take several years, involves huge committees, requires a lot of focused consumer research, and cost a tremendous amount of money.

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Target and Walmart have rolled out natural and organic initiatives recently. But independent retailers can still have a leg-up on these mass-merchandisers when it comes to natural products merchandising.

In the past few months both Target and Walmart made major announcements regarding their commitment to sell more natural and organic products. While this makes the quality natural products that we enjoy available to a larger number of potential shoppers, this also creates some challenges… Show more

Target and Walmart have rolled out natural and organic initiatives recently. But independent retailers can still have a leg-up on these mass-merchandisers when it comes to natural products merchandising.

In the past few months both Target and Walmart made major announcements regarding their commitment to sell more natural and organic products. While this makes the quality natural products that we enjoy available to a larger number of potential shoppers, this also creates some challenges for natural retailers.



Target recently announced that it has handpicked 17 “Made to Matter” trusted natural brands to feature with limited time exclusives at their stores. The retailer cherry-picked some of the top natural brands to draw consumers in and increase natural product awareness. The strategy will also infuse its stores with the flavor of new natural product trends and innovation by featuring the 17 brands through special merchandising and features. 



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As competition increases so does the expectation of retailers and consumers. Does your message resonate with consumers?

Most companies tend to focus their message on what’s important to them, their product’s value from their perspective. Unfortunately few take the time to educate their customers and help build the message around their needs. The same holds true for retailers.

A lot of the products on retailer shelves today are in distribution because the buyer liked the sales… Show more

As competition increases so does the expectation of retailers and consumers. Does your message resonate with consumers?

Most companies tend to focus their message on what’s important to them, their product’s value from their perspective. Unfortunately few take the time to educate their customers and help build the message around their needs. The same holds true for retailers.

A lot of the products on retailer shelves today are in distribution because the buyer liked the sales person or their message. This is called “relationship selling.” In this instance, little thought or science is put behind the purchasing decision. Decisions are based primarily on emotion and gut as opposed to facts.

Fact-based selling also relies on the relationship but is supported by solid facts. Fact-based selling includes additional information that supports the benefit to the consumer as well as to the retailer. This can include the brand’s commitment and plan to support the retailer, the market, the category, consumer insights, the potential sales for the item, schematic recommendations, etc.

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The term Market Basket (or shopping basket) is perhaps one of the most important terms in retail. Manufacturers and retailers strive to understandconsumer buying habits including the average list of items found in customer’s shopping baskets during each retail visit. This allows retailers to customize their assortment, marketing strategies, in-store merchandising, promotions, and pricing to attract and better meet consumer needs.

This is far less intrusive then the tracking cookies… Show more

The term Market Basket (or shopping basket) is perhaps one of the most important terms in retail. Manufacturers and retailers strive to understandconsumer buying habits including the average list of items found in customer’s shopping baskets during each retail visit. This allows retailers to customize their assortment, marketing strategies, in-store merchandising, promotions, and pricing to attract and better meet consumer needs.

This is far less intrusive then the tracking cookies Google uses monitor your web activities, the personal information that you freely provide to Facebook in terms of friends likes, recent activities, etc., or the smart phone application that automatically provides coupons when you enter your favorite retailer. While we are all concerned about privacy concerns, we desire convenience and appreciate the local retailer that welcomes us by name when we enter their store.

Every person on the planet consumes goods and services. The goal of the retailer is to capture as many sales possible in a single shopping trip to their store. For example, lets say that the average consumer spends $400 a month on toilet paper, eggs, milk, potatoes, apples, meat, snack bars, barbecue potato chips, etc. The retailer then attempts to capture the majority of items (the highest percentage) on the consumer’s shopping list for each shopping trip. Consumers shop at a variety of retailers, cherry-picking them for the best deals. This is due largely to advertised promotions, better selection, better pricing, and better service. Convenience is a huge factor for most shoppers.

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Take the time to weigh the costs and benefits of different strategies to merchandising your products in order to maximize effective retailing and customer service.

Some mainstream retailers believe consumers will search out natural and organic products at any cost. This is not the case. A lot depends on how those products are placed and displayed on store shelves. Here, I will discuss the merits and drawbacks of integrated versus segregated natural merchandising.

Categories are… Show more

Take the time to weigh the costs and benefits of different strategies to merchandising your products in order to maximize effective retailing and customer service.

Some mainstream retailers believe consumers will search out natural and organic products at any cost. This is not the case. A lot depends on how those products are placed and displayed on store shelves. Here, I will discuss the merits and drawbacks of integrated versus segregated natural merchandising.

Categories are divided into segments, and segments are defined by the way the consumer shops the category. Deciding, for example, between powder or liquid laundry detergent. These choices the consumer makes during a purchasing decision form what's called the consumer decision tree.

Some retailers choose product assortments that feature only a few select brands, while others choose product assortments that provide more options based on the needs and wants of their customers. While the first restricts choices and usually tries to encourage consumers to support the retailer’s private-label, the second strategy provides a good representation of available brands. It doesn't attempt to limit consumer’s choices.

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Merchandising strategies are a valuable component of any retailer’s success. A “one size fits all” approach will not work in today’s competitive environment. Merchandising strategies should vary by category and sometimes by segment depending on the overall objective for the brand, category, and retailer. Each strategy should be carefully crafted to target a specific objective like increasing foot traffic, inviting new customers to try your brand, developing loyal committed customers, increasing… Show more

Merchandising strategies are a valuable component of any retailer’s success. A “one size fits all” approach will not work in today’s competitive environment. Merchandising strategies should vary by category and sometimes by segment depending on the overall objective for the brand, category, and retailer. Each strategy should be carefully crafted to target a specific objective like increasing foot traffic, inviting new customers to try your brand, developing loyal committed customers, increasing sales, etc.

Developing and managing merchandising strategies should be a collaborative effort shared between the retailer and the manufacturer. Manufacturers are the true experts in their brand’s categories. A smart retailer should take full advantage of the manufacturer’s knowledge and expertise to help grow the category and their sales.

Every manufacturer is committed to help the retailer grow the category, especially when it benefits them. The category captain role is a key factor in a savvy retailer’s success. The category captain/category advisor is the trusted business partner and ally to the retailer. Together, the retailer and manufacturer can help satisfy a greater number of consumers, grow the category, increase consumer take-away, and beat the competition.

Merchandising strategies include a variety of components: pricing, promotion, product placement, ad support, consumer education, etc. Together, the different components help achieve the retailer’s goal.

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A recent study claimed that less than half of all trade promotions fail to increase brand or category growth. Trade Marketing is typically the largest line item on a company balance sheet. Effective trade marketing is critical to sustainable brand development.

Seven Areas To Focus On:
Money Promotion Schedule: Some companies have very predictable promotion schedules that train customers to only buy items on when they are on sale. While it’s nice to reward consumers for being loyal,… Show more

A recent study claimed that less than half of all trade promotions fail to increase brand or category growth. Trade Marketing is typically the largest line item on a company balance sheet. Effective trade marketing is critical to sustainable brand development.

Seven Areas To Focus On:
Money Promotion Schedule: Some companies have very predictable promotion schedules that train customers to only buy items on when they are on sale. While it’s nice to reward consumers for being loyal, the ultimate goal of and promotion is to increase your loyal consumer base by inviting new customers to try your brand. Learn your competitor’s strategies and the effectiveness of their promotions (increased lift from their promotion, etc). Build your strategy around theirs. Maximize opportunities to convert their customer to your brand. Own key events and holidays.

Creativity: Most companies repeat previous promotions and copy competitor promotions. Companies that have creative strategies typically have greater success growing sustained volume. Promotions encourage impulse purchases and brand substituting. Co-promote within the brand and with complimentary items (chips and dip) when possible. The ultimate goal is to increase consumer take-away after the promotion ends. This occurs when new customers become committed loyal shoppers.

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Do you know the value of your promotions and whether they are reaching their intended target consumers?

Most every CPG company runs promotions but are they always effective?

CPG manufacturers run promotions to increase brand awareness, drive sales, increase foot traffic, to support retailers, to reward loyal customers, and to load pantries (pantry loading is the stockpiling of an item by the consumer taking them out of the market for a while so that they don’t shop competitive… Show more

Do you know the value of your promotions and whether they are reaching their intended target consumers?

Most every CPG company runs promotions but are they always effective?

CPG manufacturers run promotions to increase brand awareness, drive sales, increase foot traffic, to support retailers, to reward loyal customers, and to load pantries (pantry loading is the stockpiling of an item by the consumer taking them out of the market for a while so that they don’t shop competitive items)

Less that 50 percent of promotions are effective. Most companies promote their products without a clear strategy to grow sales and increase brand awareness. While it’s important to support key retailers, a promotion that doesn’t increase sales and foot traffic in the category is simply a waste of money. Manufacturers need to set clear objectives and build their promotional strategy around those goals.

When planning a promotion you need to carefully think about all of the factors involved, including:

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You worked hard to develop your product and get it into the marketplace. Gaining distribution at key retailers is the blueprint to any brand’s success. So how do you identify the best stores to carry your product?

Define your core consumers

First you need to identify who your core consumers are, not just your target customer, but who is most likely to buy your product. What is their demographic makeup? Do they come from large families? Do they have a high income? Are they… Show more

You worked hard to develop your product and get it into the marketplace. Gaining distribution at key retailers is the blueprint to any brand’s success. So how do you identify the best stores to carry your product?

Define your core consumers

First you need to identify who your core consumers are, not just your target customer, but who is most likely to buy your product. What is their demographic makeup? Do they come from large families? Do they have a high income? Are they college-educated? Do they have a large family? What is their ethnicity? These are all important questions that will help you develop a solid marketing strategy that communicates the value as well as the benefits of your brand.

Identify key retailers

Next you need to identify markets/retailers with a similar demographic makeup. There are many tools available to help in this endeavor. Spectra is perhaps the most robust tool. It can help you pinpoint the best retailers/stores that match your target demographic footprint. This will help ensure your brand’s success with your core consumers.

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You never get a second chance to disappoint a new shopper.

Natural companies offer unique products that meet specific market needs and provide cutting-edge solutions that are leading the way in “better for you” product acceptance and adoption. Now, more than ever, an opportunity exists for natural to take the leadership role in this area. While conventional retailers are increasingly carrying natural products and jumping onto natural trends like gluten-free, natural retailers have a… Show more

You never get a second chance to disappoint a new shopper.

Natural companies offer unique products that meet specific market needs and provide cutting-edge solutions that are leading the way in “better for you” product acceptance and adoption. Now, more than ever, an opportunity exists for natural to take the leadership role in this area. While conventional retailers are increasingly carrying natural products and jumping onto natural trends like gluten-free, natural retailers have a better connection to their consumers and can be more nimble in responding to their needs. They can use this advantage to differentiate themselves from the big guys.

So how exactly do natural retailers get ahead in this new environment?

Stock the items customers expect.

Broaden your horizons.

Competitively price key items.

Impress new customers with exceptional service.

Not a bad trade off for a little extra effort, a little extra postage, and a targeted marketing strategy!

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Predictive data can put you ahead of natural foods trends. Here's one example.

Data can be extremely confusing but it doesn't need to be. Think of data as business intelligence. What are your needs and objectives? What questions do you want answered? This will help us determine where to start.

There are several kinds and sources of data available. Most of the data available today is historical (in the past). They fall into two categories:

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Predictive data can put you ahead of natural foods trends. Here's one example.

Data can be extremely confusing but it doesn't need to be. Think of data as business intelligence. What are your needs and objectives? What questions do you want answered? This will help us determine where to start.

There are several kinds and sources of data available. Most of the data available today is historical (in the past). They fall into two categories:

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Customers want what they want when they want it. If they can't find what they are looking for, they will shop your competition or buy your competitor’s products.

Several years ago a study was done to calculate the lost opportunity due to out-of-stocks in mainstream grocery. It was estimated that out-of-stocks cost retailers and manufacturers tens of billions of dollars each year. As a result, reducing out-of-stocks has been a major focus for traditional CPG. Natural CPG can benefit… Show more

Customers want what they want when they want it. If they can't find what they are looking for, they will shop your competition or buy your competitor’s products.

Several years ago a study was done to calculate the lost opportunity due to out-of-stocks in mainstream grocery. It was estimated that out-of-stocks cost retailers and manufacturers tens of billions of dollars each year. As a result, reducing out-of-stocks has been a major focus for traditional CPG. Natural CPG can benefit from what they learned.

Out-of-stocks continues to be a huge problem in the natural channel, especially during promotions. Consumers find it extremely frustrating not being able to find what they are looking for. It can even cause them to shop elsewhere. That equates to lost sales and/or a lost opportunity to bring in new customers into the category. Promoting a brand that a consumer can't find on the shelf is a huge waste of money and gives customers a negative impression of the brand and your store. Some customers will only give a brand one opportunity to convince them they deserve a repeat purchase.

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Whether this is your first time exhibiting at Natural Products Expo West or your fifth, there are always ways to improve your sales and marketing strategy at the show. Follow these five pieces of advice to make sure you're squeezing every last drop of opportunity out of the Expo.

Natural Products Expo is a tremendous opportunity for manufacturers to introduce their new items and brands to retailers and consumers. Retailers come with the goal of scoping out cool new items to drive… Show more

Whether this is your first time exhibiting at Natural Products Expo West or your fifth, there are always ways to improve your sales and marketing strategy at the show. Follow these five pieces of advice to make sure you're squeezing every last drop of opportunity out of the Expo.

Natural Products Expo is a tremendous opportunity for manufacturers to introduce their new items and brands to retailers and consumers. Retailers come with the goal of scoping out cool new items to drive sustainable sales, so manufacturers wanting to make an impression must be prepared to do more than the thousands of other brands these retailers already have on their shelves.

Think of the Expo show floor as a large retail store, but instead of only advertising to potential customers, you're also trying to attract retailers. Of all the items in your category, how do you stand out against the competition? Having a solid expo strategy can help you make a lasting impression with retailers, potential customers, and even food bloggers. Here are five pieces of advice to consider.

*Know your purpose:
*Know your competition:
*Know your target consumer:
*Be an expert in your category:
*Have a follow-up strategy:

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I'm often asked what true category management is and why I differentiate it by adding the word “true”. Most natural companies that I've spoken and worked with think of category management as the person pulling canned top-line reports and keeping retailer’s shelves full. I am trying to broaden and expand the definition of true category management to highlight capabilities and demonstrate its potential impact to your business. Instead of thinking about sales, true category management is all… Show more

I'm often asked what true category management is and why I differentiate it by adding the word “true”. Most natural companies that I've spoken and worked with think of category management as the person pulling canned top-line reports and keeping retailer’s shelves full. I am trying to broaden and expand the definition of true category management to highlight capabilities and demonstrate its potential impact to your business. Instead of thinking about sales, true category management is all about responding to and anticipating customers' core needs.

True category management encompasses the entire spectrum of a product's development, everything from wondering if a product idea has merit through to the end consumer after they take the product home and begin to use it. While this definition is extremely broad, it encompasses all the different aspects that category management can and should help impact your relationship with consumers. True category management insures that you have a sturdy foundation to build sustainable sales.

We’ve all heard about the 4P’s - product, placement, pricing, and promotion. True category management includes a 5th P - people. I believe that this is the single most important aspect of any business.

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Instead of thinking about sales, true category management is all about responding to and anticipating customers' core needs.

In my experience, most natural companies think of category management as people pulling canned top-line reports and keeping retailers shelves full. But "true" category management goes beyond that narrow definition.

True category management encompasses the entire spectrum of a product's development, considering everything from whether a product idea has merit to… Show more

Instead of thinking about sales, true category management is all about responding to and anticipating customers' core needs.

In my experience, most natural companies think of category management as people pulling canned top-line reports and keeping retailers shelves full. But "true" category management goes beyond that narrow definition.

True category management encompasses the entire spectrum of a product's development, considering everything from whether a product idea has merit to its usefulness to the end consumer. It encompasses the 4P’s we have all heard about - product, placement, pricing, and promotion - and includes a 5th P - people.

The authenticity and innovation that define the natural channel bubble up from a constant effort to meet and anticipate future consumer needs and wants. And yet while products exist to support consumer’s needs, meeting their wants can be about much more than simply focusing on their needs. Remember the “pet rock?" 

In its most basic definition, true category management aims to align products with shoppers needs and wants. It strives to understand the potential consumer needs and wants and then helps you develop strategies around product innovation, merchandizing, pricing, promotion or distribution to help satisfy those needs and wants.

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As you begin to set goals for 2014, consider that a great way to grow sustainable sales is to develop partnerships between retailers and manufacturers.


As we head into 2014 hopefully you took the time to review your results and performance in 2013. Did you achieve all the goals you set for yourself in 2013? What opportunities have you identified for the upcoming year?

If you have finished that step, now it's time to move ahead with developing strategies to meet and exceed… Show more

As you begin to set goals for 2014, consider that a great way to grow sustainable sales is to develop partnerships between retailers and manufacturers.


As we head into 2014 hopefully you took the time to review your results and performance in 2013. Did you achieve all the goals you set for yourself in 2013? What opportunities have you identified for the upcoming year?

If you have finished that step, now it's time to move ahead with developing strategies to meet and exceed your goals for this year. My first recommendation for retailers and manufacturers to grow sustainable sales in 2014 is to develop strategic partnerships. Together, they can help each other meet shoppers' needs and increase sales.

……….

In future articles I will take a deep-dive into several of the core strategies that make up true category management including how to get started, the resources needed, finding the right talent for the position, how to fully integrate category management with other departments, sales and marketing and how to develop structure around this key competency. Stay tuned!

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As you set your 2014 goals, make sure to review 2013's business successes (and failures) by answering these questions.

Most retailers and manufacturers are so busy thinking about tomorrow they overlook the importance of recapping the previous year. We’ve all heard the expression “those who fail to plan, plan to fail.”

A big part of planning is reviewing (scorecarding) and measuring your efforts. Here are some questions you should answer to properly assess the health of your… Show more

As you set your 2014 goals, make sure to review 2013's business successes (and failures) by answering these questions.

Most retailers and manufacturers are so busy thinking about tomorrow they overlook the importance of recapping the previous year. We’ve all heard the expression “those who fail to plan, plan to fail.”

A big part of planning is reviewing (scorecarding) and measuring your efforts. Here are some questions you should answer to properly assess the health of your business before you begin planning for 2014.
• Did you achieve all of your goals the previous year?
• If so, were your goals unrealistically simple—should they have been more aggressive?
• If not, what areas can you improve upon next year?

It's a good idea to break your review of the year into several sections. This will allow you to focus on specific areas of your business to better identify the opportunities for improvement and success.

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Remember the unique value of natural products in planning your retail pricing strategy.

Pricing strategies are perhaps one of the most sensitive and overanalyzed issues throughout the entire CPG industry.

Pricing items too high might scare consumers away, while pricing products too low might cause shoppers to question value or worth. Finding an optimal price point for each and every item can be a daunting task. It is a lot more complex than just matching the competition on every… Show more

Remember the unique value of natural products in planning your retail pricing strategy.

Pricing strategies are perhaps one of the most sensitive and overanalyzed issues throughout the entire CPG industry.

Pricing items too high might scare consumers away, while pricing products too low might cause shoppers to question value or worth. Finding an optimal price point for each and every item can be a daunting task. It is a lot more complex than just matching the competition on every item across the board, especially when your competition might be able to price that item for less simply because they better control their costs (labor, inventory, rent, advertising, etc.).

So what is the ultimate pricing strategy?

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Proper planning and promotion can help maximize holiday sales with fewer inventory management headaches.

The pre-Thanksgiving sales volume of holiday favorites always amazed me when I was a grocery manager. It was nearly impossible to keep products such as green beans, mushroom soup, yams and pumpkin on the shelves. We built huge displays of each to support sales of 50 to 100 cases per item. Green bean sales, for example, went from a couple of cases each week to several pallets in… Show more

Proper planning and promotion can help maximize holiday sales with fewer inventory management headaches.

The pre-Thanksgiving sales volume of holiday favorites always amazed me when I was a grocery manager. It was nearly impossible to keep products such as green beans, mushroom soup, yams and pumpkin on the shelves. We built huge displays of each to support sales of 50 to 100 cases per item. Green bean sales, for example, went from a couple of cases each week to several pallets in November.

My local natural foods retailer does a fantastic job of encouraging shoppers to preorder Thanksgiving turkeys. But what about all of the other holiday items customers want to buy? There's no way most natural food stores could physically accommodate theinventory required to meet consumer demand for the holidays, even if distributors could deliver the additional product. This puts natural retailers at a substantial disadvantage against mainstream retailers that typically have their own distribution centers and can easily handle the required inventory. Some supermarket back rooms and freezers are larger than most health food stores. Additionally, mainstream retailers can use trailers to hold inventory if needed. It’s not uncommon for a conventional grocer to fill a tractor-trailer with chips to support Super Bowl sales.

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Natural products may cost a few cents more but they bring value, nutritional and otherwise, that is worth it for customers. And that's something retailers should use to their advantage.

Recent events in Washington continue to erode consumer confidence. In addition, the impact of recent catastrophes like floods hurricanes fires etc. have all forced consumers to rethink their shopping habits and consider low-cost alternatives.



While price is certainly an important consideration… Show more

Natural products may cost a few cents more but they bring value, nutritional and otherwise, that is worth it for customers. And that's something retailers should use to their advantage.

Recent events in Washington continue to erode consumer confidence. In addition, the impact of recent catastrophes like floods hurricanes fires etc. have all forced consumers to rethink their shopping habits and consider low-cost alternatives.



While price is certainly an important consideration for most, it should not be the only consideration when grocery shopping. Value should also be a huge consideration - especially for consumers who care about what they eat. 



Natural products have a degree of authenticity that other products lack. We pay a little more for them because they deliver on promises that are important to us. When retailers merchandise a natural product next to some conventional products, consumers can more easily appreciate the increased value. For example, in college I remember buying the cheapest bread, peanut butter, and jelly - I was a typical poor college student. I would need to eat at least two sandwiches to feel full and that would only last a few hours. Since then I’ve learned that better quality ingredients can actually satisfy me for longer periods of time allowing me to spend less over time. 



This should be a major part of our on-going conversations with our loyal shoppers - for both retailer and manufacturers.

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New Hope Natural Media's NEXT Trend takes the next step in category analysis.

I love going to Natural Products Expo East and being around passionate and committed people all working hard to make a difference. I love the energy and seeing the new and creative products. Expo is a great way to recharge your batteries and get reconnected to your natural roots. This year was no exception.

Perhaps the most innovative product that impressed me was New Hope Natural Media’s NEXT suite of… Show more

New Hope Natural Media's NEXT Trend takes the next step in category analysis.

I love going to Natural Products Expo East and being around passionate and committed people all working hard to make a difference. I love the energy and seeing the new and creative products. Expo is a great way to recharge your batteries and get reconnected to your natural roots. This year was no exception.

Perhaps the most innovative product that impressed me was New Hope Natural Media’s NEXT suite of products including the NEXT Accelerator and NEXT Trend. This project excites me because it falls directly in my “wheelhouse.” Let me tell you why.

In my career, I’ve been blessed to work for and be trained by some of the most sophisticated CPG companies on the planet and been fortunate to have been exposed to almost every CPG tool and resource available. I’ve been trained by the very best and then given the opportunity to push the boundaries of these tools in new and creative ways. This analysis was done manually and took a tremendous amount of time and expertise. Many of the tools available today are underutilized as a result. NEXT Trend provides seemingly instant results to complex questions.

My mission, and the reason I started consulting, is to level the playing field between natural and conventional. My goal is to help naturals get more out of their available resources (tools, data, etc). NEXT is the first real resource available in natural that could help accomplish this. The potential for this tool to provide actionable, sustainable insights is unprecedented.

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Technology can be a retailer's best employee. The key is to find the right technology for your business and the best way to use it. Learn more at the Technology Winners in Grocery seminar at 4 p.m. Wednesday at Natural Products Expo East.

Technology is every retailer’s favorite employee. You know, the one that comes in early, stays late, never complains about the weather, and is always eager to jump in and contribute. Technology is the employee that makes sure your inventory is… Show more

Technology can be a retailer's best employee. The key is to find the right technology for your business and the best way to use it. Learn more at the Technology Winners in Grocery seminar at 4 p.m. Wednesday at Natural Products Expo East.

Technology is every retailer’s favorite employee. You know, the one that comes in early, stays late, never complains about the weather, and is always eager to jump in and contribute. Technology is the employee that makes sure your inventory is correct, the shelves are kept full, and receipts are tallied at the end of each day. It lets the store manager focus on their customers and the competition.

Technology is the backbone of any business. It can be anything from a series of spreadsheets all the way to the fully integrated systems that manage every aspect of the business.

So, what technology is most valuable to the retailer and why? This question can best be answered by the retailer’s goals. In its simplest form, retail is selling those things that people want to buy. Technology should address and support each and every need the retailer has.
How do you use technology in your store?

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There are plenty of educational opportunities at Expo East. Make sure you take advantage of them.

With thousands of manufacturers and retailers at Natural Products Expo East in Baltimore next week, the key question is: How do I maximize my time? Most attend Expo East with a few key objectives, such as identifying new products, ordering new items, spotting new trends, reconnecting with old friends, etc. I suggest you add education to your list.

Imagine if you could learn from… Show more

There are plenty of educational opportunities at Expo East. Make sure you take advantage of them.

With thousands of manufacturers and retailers at Natural Products Expo East in Baltimore next week, the key question is: How do I maximize my time? Most attend Expo East with a few key objectives, such as identifying new products, ordering new items, spotting new trends, reconnecting with old friends, etc. I suggest you add education to your list.

Imagine if you could learn from industry thought leaders. Would you take full advantage of that opportunity? Of course you would.

Most of us are so focused on what we are trying to accomplish at expo that we neglect the opportunities to learn and become product and category experts—the focus of my many articles. Natural Products Expo is a unique opportunity to learn more about the products you sell, your competition and categories you compete in.

Education is the cornerstone of true category management. It can provide you a sustainable competitive advantage in any economy and in the most hypercompetitive markets. Every brand should become an expert in its categories and should leverage its knowledge to support retailer partners. This is how we make the natural industry stronger.

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Seeking understanding, not just sales, leads to business success for retailers and manufacturers.

Consumers matter. Without them, we would not have anyone to buy our products. Sounds simplistic, but it’s a message that’s frequently lost and/or forgotten as retailers and manufacturers strive to achieve sales quotas and survive in the hypercompetitive natural foods industry.

Focus on building a relationship, though, and you’re on your way to standing out and thriving.

What… Show more

Seeking understanding, not just sales, leads to business success for retailers and manufacturers.

Consumers matter. Without them, we would not have anyone to buy our products. Sounds simplistic, but it’s a message that’s frequently lost and/or forgotten as retailers and manufacturers strive to achieve sales quotas and survive in the hypercompetitive natural foods industry.

Focus on building a relationship, though, and you’re on your way to standing out and thriving.

What strategies do you use to delight your customers?

Topline reports are a great first step toward understanding how products are performing. They can tell you how a product ranks in a category, whether its sales are up or down. What they don’t tell you is how well the product meets consumers’ needs and what concerns remain beyond the sale.

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Think you know your Millennials? Check out these telling stats and stories.

Big CPG is focused on the new generation of consumers called Millennials and how to capture their shopping dollars. Three recent studies validate this unique generation’s shopping preferences. They are listed in the original article.

Millennials were born between 1980 and 2000. They are the first digital generation, meaning that they're very tech savvy and frequently do extensive research before making a… Show more

Think you know your Millennials? Check out these telling stats and stories.

Big CPG is focused on the new generation of consumers called Millennials and how to capture their shopping dollars. Three recent studies validate this unique generation’s shopping preferences. They are listed in the original article.

Millennials were born between 1980 and 2000. They are the first digital generation, meaning that they're very tech savvy and frequently do extensive research before making a buying decision.
Three key points stand out and resonated through each of the studies:

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While most natural companies have a pretty good idea of their costs, they don't have a good strategy to account for the volatile pricing of some ingredients. Change that.

What does it cost to make a single bag of granola, a box of cereal, a protein bar, etc.? Do you know what it costs to produce one sellable unit of your product? While most natural companies have a pretty good idea, they don't have a good strategy to account for the volatile pricing of some ingredients. This can cause… Show more

While most natural companies have a pretty good idea of their costs, they don't have a good strategy to account for the volatile pricing of some ingredients. Change that.

What does it cost to make a single bag of granola, a box of cereal, a protein bar, etc.? Do you know what it costs to produce one sellable unit of your product? While most natural companies have a pretty good idea, they don't have a good strategy to account for the volatile pricing of some ingredients. This can cause brands to over or under estimate their expenses.

Cost accounting

The cost of an item goes well beyond totaling its ingredients, adding your labor and packaging. Knowing the true cost of an item is critical to help you identify your true profit margins, especially during a promotion. This can help you better manage costs and keep them under control. Paying close attention to ingredient prices and market conditions can also help you predict pricing fluctuations, giving you an opportunity to schedule purchases to take advantage of optimal pricing opportunities.

This is called cost accounting. While this is not traditionally a category management function, it is crucial to help you determine the profitability of a promoted item.

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It's important to understand the power of the data and know how to use it to ascertain actionable business building insights.

Frequently the hot topic in blogs, articles and marketing slogans, the new buzzword in the industry is “big data.” So what is it and why should you care? Some definitions include every type of data source imaginable, from shopper, consumer, point-of-sale (POS) and syndicated to shipment, internal inventory, cost of goods sold, demographic, social media, SEO… Show more

It's important to understand the power of the data and know how to use it to ascertain actionable business building insights.

Frequently the hot topic in blogs, articles and marketing slogans, the new buzzword in the industry is “big data.” So what is it and why should you care? Some definitions include every type of data source imaginable, from shopper, consumer, point-of-sale (POS) and syndicated to shipment, internal inventory, cost of goods sold, demographic, social media, SEO, etc.

Together in the right combination, these data points provide powerful insights to help you grow your business. It's not critical that you adopt a big data strategy if you're new to category management. It is, however, important to understand the power of the data and know how to use it to ascertain actionable business building insights.

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The old 80/20 rule takes new meaning in natural retail merchandising: 80 percent of the items in each category mirror what consumers want most; the remaining 20 percent should make a statement about the retailer and their focus in the community.

All of my articles talk about creating a competitive set. This means having top-selling items on the shelves to draw new consumers into your store. But what sets you apart from the competition?

Consumers compare store pricing and selection… Show more

The old 80/20 rule takes new meaning in natural retail merchandising: 80 percent of the items in each category mirror what consumers want most; the remaining 20 percent should make a statement about the retailer and their focus in the community.

All of my articles talk about creating a competitive set. This means having top-selling items on the shelves to draw new consumers into your store. But what sets you apart from the competition?

Consumers compare store pricing and selection by comparing like items at each store. Their perception is what keeps them coming back or pushes them away. It’s critical that retailers sell items that help them effectively compete in their local markets by aggressively pricing and merchandising popular items sold by your competition.

I am not suggesting that every retailer be a carbon copy of their competitor. To the contrary, I recommend that about 80 percent of the items in each category mirror what consumers want most—items available across multiple retailers and outlets. The remaining 20 percent should make a statement about the retailer and their focus in the community.

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Natural retailers should balance strong existing brands with private label offerings to differentiate and help level the playing field against conventional.

Strong brands offer the promise of consistent quality, innovation, authenticity, helping draw new shoppers to natural retailers. Natural brands are custom-built to address specific customer needs. They unite consumers across multiple channels and create excitement for our natural way of life.

Branded products attract consumers… Show more

Natural retailers should balance strong existing brands with private label offerings to differentiate and help level the playing field against conventional.

Strong brands offer the promise of consistent quality, innovation, authenticity, helping draw new shoppers to natural retailers. Natural brands are custom-built to address specific customer needs. They unite consumers across multiple channels and create excitement for our natural way of life.

Branded products attract consumers through their national ad campaigns and promotions, encouraging mainstream consumers to shop natural retailers and subsequently driving traffic there. Every new customer creates an opportunity for natural retailer to convert them into future loyal shoppers. This is the quickest way naturals can grow sustainable sales.

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Category management is the art and science of connecting your products with your core consumer. It's advanced fact-based selling using every available tool to reach your target audience, increase foot traffic for your retail partners, grow sustainable market share, improve your distribution and help you win at shelf—all of which are vitally important to your success.

The term category management has a wide array of meanings across retailers and manufactures across multiple channels… Show more

Category management is the art and science of connecting your products with your core consumer. It's advanced fact-based selling using every available tool to reach your target audience, increase foot traffic for your retail partners, grow sustainable market share, improve your distribution and help you win at shelf—all of which are vitally important to your success.

The term category management has a wide array of meanings across retailers and manufactures across multiple channels. Some category managers do little more then keep retailers shelves full using canned topline reports while others help “steer the ship.”

When I first started (before the term was coined), category management was largely about populating templates and building presentations around them. Sadly for some companies, little has changed. Back then, report building and generation took up the lion share of every category manager’s time. Data was not well organized and segmented. Everything had to be done by hand. With today's incredibly sophisticated and automated reporting tools, much of the busy work has been taken care of.

Flexing brand muscle

Category management is perhaps one of the most underutilized and misunderstood resources. It's difficult to accurately gauge the true ROI derived from category management. How do you properly evaluate increased distribution nationally, improving merchandising in the top retailers, bettering price points during a feature add or increasing the size of the shopping basket when your brand is present? A talented category manager can help companies reach and exceed their goals by providing strategic direction and guidance. The true muscle of any brand is the strength of their category management department.

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The opportunity gap analysis combines several other reports in one, including an item ranking comparison between both the account and the market, a cumulative dollar share report (also used to fuel the Pareto curve), and an opportunity gap analysis assessment by item/brand/category/segment, measuring item performance against the All Commodity Volume (ACV) benchmark for the account.

My favorite report for measuring category and item performance is the opportunity gap analysis. This report… Show more

The opportunity gap analysis combines several other reports in one, including an item ranking comparison between both the account and the market, a cumulative dollar share report (also used to fuel the Pareto curve), and an opportunity gap analysis assessment by item/brand/category/segment, measuring item performance against the All Commodity Volume (ACV) benchmark for the account.

My favorite report for measuring category and item performance is the opportunity gap analysis. This report combines several others in one, including an item ranking comparison between both the account and the market, a cumulative dollar share report (also used to fuel the Pareto curve), and an opportunity gap analysis assessment by item/brand/category/segment, measuring item performance against the All Commodity Volume (ACV) benchmark for the account.
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There's a tremendous opportunity to better understand consumer shopping behavior, the goal being to have consumers purchase more of the items on their shopping list in your store and not with competitors.

Consumers typically shop multiple categories on each trip to the store, the items in their cart representing a wide selection of products available at the chosen retailer. This is called the market basket.

There's a tremendous opportunity to better understand consumer shopping… Show more

There's a tremendous opportunity to better understand consumer shopping behavior, the goal being to have consumers purchase more of the items on their shopping list in your store and not with competitors.

Consumers typically shop multiple categories on each trip to the store, the items in their cart representing a wide selection of products available at the chosen retailer. This is called the market basket.

There's a tremendous opportunity to better understand consumer shopping behavior and take full advantage of this important phenomenon, the goal being to have consumers purchase more of the items on their shopping list in your store and not with competitors. This can be accomplished through cross category promotion.

Savvy retailer to the rescue

Smaller manufacturers don't always have the ability to promote across different categories or brands given their limited product selection and buying power, nor do they always have the relationships or network to effectively promote with complementary items. This is where the savvy retailer can help.

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Getting the right product mix can sometimes appear to be a daunting task. Retailers must consider category/segment sales, manufacturer support, item contribution, the importance of the item to their shoppers, item distribution at competitors and markets, etc.

Managing product assortment has always been a challenge. There are so many things for a retailer to consider. For example, category/segment sales, manufacturer support (the amount and frequency an item is promoted), item… Show more

Getting the right product mix can sometimes appear to be a daunting task. Retailers must consider category/segment sales, manufacturer support, item contribution, the importance of the item to their shoppers, item distribution at competitors and markets, etc.

Managing product assortment has always been a challenge. There are so many things for a retailer to consider. For example, category/segment sales, manufacturer support (the amount and frequency an item is promoted), item contribution (what the item contributes to the growth of the category), the importance of the item to their shoppers, item distribution at competitors and markets, etc.

Getting the right product mix can sometimes appear to be a daunting task. For this reason, I continually advocate a strong relationship with a trusted manufacturing partner and the diligent application of true category management principals, deep diving into the category well beyond the canned topline reports when necessary.

Another consideration is the category’s size within the retailer’s store. You may have noticed that some categories perform poorly with ample space to feature a broad selection while other categories excel with reduced space. This may seem counter intuitive, but it's the law of diminishing return suggesting that too much of a good thing is bad.

For instance, nut based non-dairy shelf stable beverages are a growing segment, however contribution continues to decline. This would imply that there are too many items on the shelf competing for shoppers' sales dollars.

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This is the last in a nine-part series exploring the components of true category management.

You worked hard to get to this point, where you evaluate all your efforts in the previous steps to assess their effectiveness. This is the step where you analyze, measure and review the results from the previous steps. Are they moving you closer to your goal or further away? Assessment should be ongoing and used to help you refocus and make changes if necessary.

On course

Similar to… Show more

This is the last in a nine-part series exploring the components of true category management.

You worked hard to get to this point, where you evaluate all your efforts in the previous steps to assess their effectiveness. This is the step where you analyze, measure and review the results from the previous steps. Are they moving you closer to your goal or further away? Assessment should be ongoing and used to help you refocus and make changes if necessary.

On course

Similar to the plane illustration in step three, an airplane traveling from California to Hawaii is off course more than 90 percent of the time due to wind shifts. The pilots continually need to make minor adjustments to keep the plane on course. The same is true for you and your plan.

Running any business would be easy if you could only predict consumer purchase habits and trends, supply and demand, the actions of your competition, the weather, etc. True category management can help you solve these puzzles, thus giving you a competitive advantage.

A pilot files a flight plan before each trip. In the event of a major storm, the pilot will plan to fly around it. In the same manner, a talented category manager can help you predict an increase in cold- and flu-based supplements and medications upon environmental conditions, which may translate to an increased demand for cough drops and vitamin C.

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Where the proverbial “rubber meets the road,” the degree to which you accurately implement the plan will dictate your/its success. While this sounds easy, it is typically the most difficult step for manufacturers and retailers.


The eighth in a nine-part series exploring the components of true category management, this is the action step that brings your strategies and tactics to life. Where the proverbial “rubber meets the road,” the degree to which you accurately implement the plan… Show more

Where the proverbial “rubber meets the road,” the degree to which you accurately implement the plan will dictate your/its success. While this sounds easy, it is typically the most difficult step for manufacturers and retailers.


The eighth in a nine-part series exploring the components of true category management, this is the action step that brings your strategies and tactics to life. Where the proverbial “rubber meets the road,” the degree to which you accurately implement the plan will dictate your/its success.

While this sounds easy, it is typically the most difficult step for manufacturers and retailers. Most of us place a lot of barriers around implementing a plan: I'm too busy. Where do I begin? I'll do it tomorrow. Sales are good. I prefer to be spontaneous. I'm not good with details, etc. These are frequently nothing more than just excuses. Some prefer to wait until all the “i’s” are dotted and the “t’s” crossed before you implement the plan. While this is ideal it should not preclude you from reaching your goals.

How important is this? There is a famous saying; "those who fail to plan, plan to fail."

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Independence Day is a huge holiday for retailers. Competition is fierce for every shopper’s dollar, and it should be go time for putting category-management strategies to action. Here's how.

The sixth step of eight in our true category management adventure, category tactics are those processes that retailers apply to their strategies. The goal of this step is to determine the specific actions that should be taken to achieve the chosen category strategies.

How tactics work, how to… Show more

Independence Day is a huge holiday for retailers. Competition is fierce for every shopper’s dollar, and it should be go time for putting category-management strategies to action. Here's how.

The sixth step of eight in our true category management adventure, category tactics are those processes that retailers apply to their strategies. The goal of this step is to determine the specific actions that should be taken to achieve the chosen category strategies.

How tactics work, how to apply them

Independence Day is a huge holiday for retailers. Competition is fierce for every shopper’s dollar. Your goal is to increase foot traffic in your store, so the strategy becomes increasing foot traffic, thus increasing sales. The tactics, then, are how you go about achieving that strategy. Let's say there are three possible ways for you to appeal to consumers. Your options include:

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Category strategies are used to fine-tune the category role to meet scorecard objectives. Strategize to grow market share, improve gross margin, gain customer satisfaction, and increase sales, foot traffic, return-on-investment and shopping basket size.

Now we delve into step five of eight on the journey to true category management.

Category strategies are used to fine-tune the category role to meet scorecard objectives. Strategize to grow market share, improve gross margin, gain… Show more

Category strategies are used to fine-tune the category role to meet scorecard objectives. Strategize to grow market share, improve gross margin, gain customer satisfaction, and increase sales, foot traffic, return-on-investment and shopping basket size.

Now we delve into step five of eight on the journey to true category management.

Category strategies are used to fine-tune the category role to meet scorecard objectives. Strategize to grow market share, improve gross margin, gain customer satisfaction, and increase sales, foot traffic, return-on-investment and shopping basket size.

Strategies give a purpose to each category, segment and brand within the retailer. They are designed around a specific goal or retailer objective. Strategies can be developed at all different levels from individual items up to and including an entire department and should align themselves around the sales process and attaining a specific goal. Those goals should be incorporated and managed with the help of our previous step, a category scorecard.

To provide a unique flavor, or point of differentiation for the retailer in the market, strategies should differ within categories.

Always designed with the consumer in mind, the category strategy's goal is to connect certain retailer perceptions or products with shoppers. For example, a turf-defending strategy is one that relies heavily on competitive price points for popular top-selling items. This might include snacks and soda. A commitment to sell these items at a competitive price can establish the retailer as a market leader in these categories. That will in turn draw additional foot traffic to purchase other categories in the store. It's the balance of the different strategies that fuels the store’s sales goals and objectives.

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How advanced are your goal-setting skills? Scorecarding success is only 4 steps away.

This is the fourth of eight steps to mastering category management. We're halfway there!

Goal setting is an important part in any business function. Without goals, how will you know when you've reached an objective? More importantly, goal setting is the roadmap to helping you achieve the results needed to successfully grow your business.

Scorecarding is advanced goal-setting. The category… Show more

How advanced are your goal-setting skills? Scorecarding success is only 4 steps away.

This is the fourth of eight steps to mastering category management. We're halfway there!

Goal setting is an important part in any business function. Without goals, how will you know when you've reached an objective? More importantly, goal setting is the roadmap to helping you achieve the results needed to successfully grow your business.

Scorecarding is advanced goal-setting. The category scorecard is organized and broken down into micro goals all designed to grow category, segment, brand and item sales. Goals should also be focused on increasing consumer foot traffic in the natural store.

The completed scorecard should identify the strategic allocation of work to be performed to reach your goals and objectives, including an assessment of consumer buying habits. They should be specific, not general. The more specific the goals, the easier they are to target and assess.
Goal setting should align the manufacturer’s brand strategies for the category with the retailer’s. Accordingly, as true category experts, manufacturers should be a key part of any scorecarding project. Together, they can help each other reach their goals for sustainable sales growth and market penetration.

4 steps to scorecarding success:

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Category appraisal is similar to your yearly physical exam in that it provides a complete assessment of the category’s overall health with a look at the five Ps: product, placement, pricing, promotion and people.

The third step in eight toward mastering category management, category appraisal is similar to your yearly physical exam in that it provides a complete assessment of the category’s overall health.

Just like an airplane changes course continually as the wind blows, you… Show more

Category appraisal is similar to your yearly physical exam in that it provides a complete assessment of the category’s overall health with a look at the five Ps: product, placement, pricing, promotion and people.

The third step in eight toward mastering category management, category appraisal is similar to your yearly physical exam in that it provides a complete assessment of the category’s overall health.

Just like an airplane changes course continually as the wind blows, you frequently need to make several minor adjustments to achieve your targeted results while working toward a goal. Without continually assessing the plane’s flight status and tweaking accordingly, it would never reach its final destination. This is also true in retail and why this step is so important.

Retailers should assess their categories annually. Manufacturers should provide a complete category review each time they have a top-to-top meeting with a retailer, offering mini category reviews whenever they introduce a new item. This should always assess the category performance at the retailer, within the market and across different outlets.

Category assessment focuses on the five Ps: product, placement, pricing, promotion and people.

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Do you know why shoppers come in and/or buy certain products at natural retail? Knowledge is power with the top five reasons.

This is the third in a nine-part series exploring the components of true category management.
The category role identifies the importance of the category to the retailer.

This is the role the retailer wants the category to play within their store. A category can be used to bring new consumers into the store, increase foot traffic, support routine… Show more

Do you know why shoppers come in and/or buy certain products at natural retail? Knowledge is power with the top five reasons.

This is the third in a nine-part series exploring the components of true category management.
The category role identifies the importance of the category to the retailer.

This is the role the retailer wants the category to play within their store. A category can be used to bring new consumers into the store, increase foot traffic, support routine shopping needs, be a destination for seasonal/occasional purchases, a one-stop-shop or for convenience. Retailers may assign different roles to categories within their stores depending on the customers they want to attract.

Category roles are great way of developing specific strategies to target customer needs. For example, the retailer might want to be known as the best store to support all of the needs of new parents. In this example the retailer would stock a wide variety of baby and infant products across several product segments. Their selection would be better than their competition, differentiating them in their market.

Sometimes rolls vary within a category. The retailer might want to be the low price leader in certain segments within the category to draw shoppers into their store—in our example, the lowest everyday price on baby food in the market. They would then earn a higher margin on complementary items like baby clothes, soaps and shampoos, lotions and creams, etc.

Natural retailers have their choice from several different types of category roles, the most popular being the five that follow:

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This category-definition step is perhaps the most important in the category management process; it's how you communicate your commitment to shoppers looking for your product.

This is the second in a nine-part series exploring the components of true category management.

This step is perhaps the most important in the category management process; it's how you communicate your commitment to shoppers looking for your product—where you let them know you are committed to solving their… Show more

This category-definition step is perhaps the most important in the category management process; it's how you communicate your commitment to shoppers looking for your product.

This is the second in a nine-part series exploring the components of true category management.

This step is perhaps the most important in the category management process; it's how you communicate your commitment to shoppers looking for your product—where you let them know you are committed to solving their problems and meeting their needs.

Category update

Categories are typically defined by retailers and syndicated data providers based on how they perceive it. Times have changed and consumers have a lot of choices when it comes to how they spend their hard earned money. These "tired old" category definitions may not resonate with all consumers.

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Aligning your process with retailers' category management strategy will help you stand out in their eyes and establish you as a true partner and potentially, the category captain.

This story kicks off a nine-part series exploring the components of true category management.
Category management is typically an eight-step process. The best solution for your business is the one that encompasses all of the strategies needed to make your brand successful.

The process you choose will… Show more

Aligning your process with retailers' category management strategy will help you stand out in their eyes and establish you as a true partner and potentially, the category captain.

This story kicks off a nine-part series exploring the components of true category management.
Category management is typically an eight-step process. The best solution for your business is the one that encompasses all of the strategies needed to make your brand successful.

The process you choose will significantly help you achieve the goals you set for your brand. It will be your roadmap to success. This process will establish your brand as a true leader in the category and differentiate you from the competition.

Your goal is to understand your retailer and become an expert with regard to their needs, goals and objectives for the category, their profit and margin expectations, etc. Aligning your process with their category management strategy will help you stand out in their eyes and establish you as a true partner and potentially, the category captain.

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As a natural product manufacturer, taking these necessary steps will get you toward a retail distribution home run so that you can compete with anyone, in any channel.

Most of us spend our days constantly looking to make a dramatic improvement in whatever project we’re working on. We see our competition getting ahead but can't seem to find ways in our busy schedule to keep up. This creates a lot of stress as a result and can act as a huge distraction in several areas of our lives… Show more

As a natural product manufacturer, taking these necessary steps will get you toward a retail distribution home run so that you can compete with anyone, in any channel.

Most of us spend our days constantly looking to make a dramatic improvement in whatever project we’re working on. We see our competition getting ahead but can't seem to find ways in our busy schedule to keep up. This creates a lot of stress as a result and can act as a huge distraction in several areas of our lives.

To use a baseball metaphor, we're constantly swinging for the fences each time we get up to bat.
We have a home-run or nothing-at-all attitude. Not only is this unrealistic, it sets us up for failure.

The point is, that sometimes, little improvements can add up to huge wins. Swinging for the fences and missing will not get you to first base.

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When done right, packaging can do a lot more for a brand than simply communicate a unique product offering to consumers. Here's what natural brands must consider.

Packaging is the face of your brand. Not only does it identify your product on the shelf, but also tells the consumer a lot about the product inside. Your packaging should clearly communicate everything you want your brand to represent: quality, health, integrity, uniqueness, etc.

Packaging can do a lot more for your… Show more

When done right, packaging can do a lot more for a brand than simply communicate a unique product offering to consumers. Here's what natural brands must consider.

Packaging is the face of your brand. Not only does it identify your product on the shelf, but also tells the consumer a lot about the product inside. Your packaging should clearly communicate everything you want your brand to represent: quality, health, integrity, uniqueness, etc.

Packaging can do a lot more for your brand than simply communicate your unique product offering to consumers. It can be used to develop a billboard at retail, helping consumers find your products more easily (think Lay's sea of yellow). For example: imagine if all of your packages were bright red. How would they stand out on the shelf if they were all grouped together on multiple shelves? This is a billboard and the ultimate in product placement that few brands achieve.

The goal is to "own" the shelf and create a merchandising billboard to capture shoppers attention. Have this goal in mind as you develop your go-to market strategy.

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It's been estimated that out-of-stocks cost retailers and manufacturers tens of billions of dollars each year. Reduce them, lost sales and annoyed customers with this advice.

Several years ago a study was done to calculate the lost opportunity due to out-of-stocks in mainstream grocery. It was estimated that out-of-stocks cost retailers and manufacturers tens of billions of dollars each year. As a result, reducing out-of-stocks has been a major focus for traditional CPG.
Shelves full,… Show more

It's been estimated that out-of-stocks cost retailers and manufacturers tens of billions of dollars each year. Reduce them, lost sales and annoyed customers with this advice.

Several years ago a study was done to calculate the lost opportunity due to out-of-stocks in mainstream grocery. It was estimated that out-of-stocks cost retailers and manufacturers tens of billions of dollars each year. As a result, reducing out-of-stocks has been a major focus for traditional CPG.
Shelves full, customers happy
It continues, however, to be a huge problem in the natural channel, especially during promotions. From the consumer point of view, this is very frustrating, even causing them to shop elsewhere when they can't find what they want. To the retailer and manufacturer, that equates to lost sales and/or missed opportunity to bring new customers into the category.
Besides, promoting a brand that a consumer can't find on the shelf is a huge waste of money for the manufacturer, creating a negative impression for the consumer. Some customers will only give a brand one opportunity to convince them they deserve a shot in their shopping cart.
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Independent natural retailers serve as incubators for new products and innovation, for which natural manufacturers should pay homage. Conversely, it is a huge mistake for independent natural retailers to turn their back on brands if and when they gain distribution at a competitor because consumers perceive stores missing top-selling natural brands as having a poor selection.

Independent, and especially natural retailers, are the lifeblood of the communities they service. Their importance… Show more

Independent natural retailers serve as incubators for new products and innovation, for which natural manufacturers should pay homage. Conversely, it is a huge mistake for independent natural retailers to turn their back on brands if and when they gain distribution at a competitor because consumers perceive stores missing top-selling natural brands as having a poor selection.

Independent, and especially natural retailers, are the lifeblood of the communities they service. Their importance cannot be overemphasized—but is frequently overlooked. With typically a strong commitment to the community, sustainability, local schools and causes, and educating their loyal customers about brands specifically designed to meet their needs, such retailers fill a void that larger retailers can't meet.

Larger natural and mainstream players typically cherry-pick the top-selling items to drive consumer traffic to their stores. Their reach and ability to invite consumers to try natural products is unparalleled. Most of them focus on converting consumers to their private-label products.

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Category managers can and should support sales within their retailer partners, and there are some different approaches to consider in doing so, some of which may prove more effective than others.

The great equalizer between smaller and more sophisticated CPG companies, true category management can differentiate any brand in today's highly competitive environment. Category managers can and should support sales within their retailer partners, and there are some different approaches to… Show more

Category managers can and should support sales within their retailer partners, and there are some different approaches to consider in doing so, some of which may prove more effective than others.

The great equalizer between smaller and more sophisticated CPG companies, true category management can differentiate any brand in today's highly competitive environment. Category managers can and should support sales within their retailer partners, and there are some different approaches to consider in doing so, some of which may prove more effective than others.

Retail sales support

Most natural companies rely on relationship selling. This can be extremely effective if you have good rapport with your buyers. Decisions are based primarily on emotion and gut as opposed to facts. This can also create an opportunity for sales people armed with solutions to help retailers compete more effectively. The challenge, then, comes from dealing with new buyers, strong competitive threats from more sophisticated brands and mainstream retailers who expect more support from their brands. The old way of selling is not as effective as it once was.

Another hurdle is that most companies tend to focus their message on what's important to them—their product's value from their perspective. Unfortunately, few take the time to educate their retail customers and help build the message around their needs: satisfying customers while making a profit. Retailers want support and guidance from their manufacturer partners.

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Category reviews serve as an appraisal of category performance, providing
the framework for retailers and manufacturers to work together in setting
goals, expectations and strategic plans for future category growth. Here are
some best practices for implementation.

Category Reviews

Category reviews serve as an appraisal of category performance. They provide the framework for retailers and manufacturers to work together in setting goals, expectations and strategic plans for… Show more

Category reviews serve as an appraisal of category performance, providing
the framework for retailers and manufacturers to work together in setting
goals, expectations and strategic plans for future category growth. Here are
some best practices for implementation.

Category Reviews

Category reviews serve as an appraisal of category performance. They provide the framework for retailers and manufacturers to work together in setting goals, expectations and strategic plans for future category growth.

Important because they assess the state of the category compared to the goals and objectives of the retailer and manufacturer, category reviews measure a category's growth for the retailer relative to their competitive market. The market can be used as the benchmark in assessing category performance, the goal then being to grow your category faster than the market to effectively take market share from your competition.

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Product placement and shelf management are crucial for driving sales and marketing to shoppers. What makes these strategies successful?

Shelf Management

Shelf management includes product placement and merchandising on retailer shelves. Specifically, it helps the retailer maximize sales per linear foot, drive foot traffic to stores, increase customer shopping basket size, and have a competitive advantage in their marketplace. A retailer's merchandising strategy will communicate… Show more

Product placement and shelf management are crucial for driving sales and marketing to shoppers. What makes these strategies successful?

Shelf Management

Shelf management includes product placement and merchandising on retailer shelves. Specifically, it helps the retailer maximize sales per linear foot, drive foot traffic to stores, increase customer shopping basket size, and have a competitive advantage in their marketplace. A retailer's merchandising strategy will communicate their marketing strategy to shoppers.

Effective self-management strategies can be used to communicate a consistent message to your customers, highlighting your commitment to meet their needs. It can differentiate you from your competition. Product placement is critical. Consumers want stores that are easy and friendly to shop and want their favorite brands at a fair price.

Getting a product on the shelf in the right place and at the right stores is key to any brand's success. Most retailers merchandise items grouped by brand to make categories easy to shop. This strategy allows consumers to more easily compare like items.

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Database management includes the best tools to help manage your natural business and grow your brand. Here are key data types and what you can learn.

When it comes to category management, you may know the seven essential components, but do you know how to implement each one?

Database Management

Database management, also known as business intelligence, encompasses several different data sources such as internal and external data sources, syndicated data, retailer… Show more

Database management includes the best tools to help manage your natural business and grow your brand. Here are key data types and what you can learn.

When it comes to category management, you may know the seven essential components, but do you know how to implement each one?

Database Management

Database management, also known as business intelligence, encompasses several different data sources such as internal and external data sources, syndicated data, retailer point-of-sale data (POS), consumer data and marketing data. Talented category managers can help you bring together all the different data sources in a useful way. This will maximize efficiencies within the organization while building a strong sales story to help you win at shelf.

Data management can be extremely confusing but it doesn't need to be. What are your needs and objectives? What questions do you want answered? This will help us determine where to start.
Data management includes making all of the different data sources work well for you. Similar to a chef at a gourmet restaurant, knowing how to combine spices with the different ingredients is what sets you apart from the greasy spoon.

Types of data available to manufacturers

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The importance of independent food retailers cannot be overemphasized, but they are frequently overlooked. Some larger retailers forget that they were once small independent retailers as well.

Independent retailers, and especially those in the natural space, are the lifeblood of the communities they service. They typically have a strong commitment to the community, sustainability, local schools and causes, and educating their loyal customers about brands specifically designed to meet… Show more

The importance of independent food retailers cannot be overemphasized, but they are frequently overlooked. Some larger retailers forget that they were once small independent retailers as well.

Independent retailers, and especially those in the natural space, are the lifeblood of the communities they service. They typically have a strong commitment to the community, sustainability, local schools and causes, and educating their loyal customers about brands specifically designed to meet their needs.

Independent natural retailers fill a void that larger retailers can’t meet. No one retailer can completely service every consumer’s needs. Specialization offers choices to a wide variety of shoppers. The small independent retailer might have unique specialty items while the larger mainstream retailer can support large families with tight budgets.

Independent natural retailers serve as incubators for new products and new innovation. They can also act as the “R&D departments” for new brands, helping manufacturers understand consumer needs. Most large natural brands can trace their roots back to an independent retailer with the courage to sample their items. For this reason it is imperative that natural manufacturers pay homage to the retailers that helped launch their brands. Helping the retailer secure top-selling items in the marketplace and helping the retailer compete head-to-head with their larger competitors can accomplish this.

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Consumer insights

Includes all consumer-related information around consumer buying and shopping habits. From a retailer reducing long checkout lines to a manufacturer providing the best selection of merchandise at the best possible price, the ultimate goal is to improve customer satisfaction.

Similar to the famous movie line "If you build it they will come," consumer insights identify specific attributes that encourage repeat purchase of product. In this example, an endless supply… Show more

Consumer insights

Includes all consumer-related information around consumer buying and shopping habits. From a retailer reducing long checkout lines to a manufacturer providing the best selection of merchandise at the best possible price, the ultimate goal is to improve customer satisfaction.

Similar to the famous movie line "If you build it they will come," consumer insights identify specific attributes that encourage repeat purchase of product. In this example, an endless supply of baseball's top players.

Shopper insights

Consumer insights frequently get confused with shopper insights. Shopper insights focus on how people shop your category, identifying the process consumers go through when selecting their favorite brand. For example, shoppers might choose the product size before brand and flavor. Typically, brand is the first choice consumers make when creating their shopping list.

Consumer insights focus on how consumers use your products, identifying the key product attributes that help you stand out from your competition and attract new loyal customers. You might focus your product marketing as a stand alone snack while the majority of your customers mix it with other foods like granola and yogurt.

Specifically, you need to know your target consumer, what's important to them, their needs, why they choose your brand over the competition, and what keeps them loyal repeat buyers. Becoming an expert will help you grow sustainable sales and compete head-to-head with even the most sophisticated CPG company.

Both insights are extremely important in developing and implementing a brand strategy. They should also both be considered when developing a category management strategy.

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Reach new customers and satisfy your current loyal ones with tips for effective trade marketing support.

When it comes to category management, you may know the seven essential components, but do you know how to implement each one?

To provide you with a better understanding of how important the 7 musts of true category management are in helping you grow your business, over the next several weeks we will be taking a closer look at each one.

Trade Marketing… Show more

Reach new customers and satisfy your current loyal ones with tips for effective trade marketing support.

When it comes to category management, you may know the seven essential components, but do you know how to implement each one?

To provide you with a better understanding of how important the 7 musts of true category management are in helping you grow your business, over the next several weeks we will be taking a closer look at each one.

Trade Marketing Support

Trade marketing's focus is on inviting new customers to shop your brand, encouraging consumers to choose your brand over the competition, raise brand awareness, support your retail partners and grow sales sustainably.

Trade marketing support includes everything from grass roots initiatives to full blown ad campaigns, and analysis of historical events as well as projections for future sales trends.

A recent study by Nielsen claims that less than half of all trade promotions fail to increase brand or category growth. This is unfortunate, because the main goal of trade marketing is to do just that—grow one's brand by increasing the demand at the retailer/distributor level.

Trade marketing is typically the largest line item on a company balance sheet, but that doesn't necessarily mean it's effective. True category management can help you get a higher ROI for your trade-marketing budget and effectively reach your target consumer.

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Grow your natural manufacturing business with four analytics reports that reveal how and where your natural products are sold in retail.

When it comes to category management, you may know the seven essential components, but do you know how to implement each one?

To provide you with a better understanding of how important the 7 musts of true category management are in helping you grow your business, over the next several weeks we will be taking a closer look at each… Show more

Grow your natural manufacturing business with four analytics reports that reveal how and where your natural products are sold in retail.

When it comes to category management, you may know the seven essential components, but do you know how to implement each one?

To provide you with a better understanding of how important the 7 musts of true category management are in helping you grow your business, over the next several weeks we will be taking a closer look at each one.

First up, analytics.

Analytics

Analytics, both basic and advanced, are at the heart of category management. As a roadmap to achieving your goals, they encompass all aspects of trade management, business planning, assortment analysis and consumer awareness. When applied correctly, they provide invaluable business insights and actionable recommendations.

Think of analytics as the facts needed to support business-making decisions. It can provide answers to pressing business questions that will help you better support your retailer partners and grow your brand.

The challenge is: Where to begin?

A good place to start is to work backwards from the questions you are trying to answer. What information do you need to answer your questions? What insights do you want from the data? Do you want visual results?

At this point, try not to get lost in the minutia. "Analysis paralysis" occurs when you try to analyze too much data, resulting in a waste of time and frustration.

The next step is to become familiar with the popular reports and reporting tools available. Here are four:

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Category management is the great equalizer between small businesses and the most sophisticated CPG companies. Is your natural store using it to the fullest?

There is a huge difference between natural and mainstream when it comes to category management. I use the term "true" category management to differentiate the difference. True category management is an essential process that, when done properly, can determine your level of success in the marketplace.

Unfortunately, many… Show more

Category management is the great equalizer between small businesses and the most sophisticated CPG companies. Is your natural store using it to the fullest?

There is a huge difference between natural and mainstream when it comes to category management. I use the term "true" category management to differentiate the difference. True category management is an essential process that, when done properly, can determine your level of success in the marketplace.

Unfortunately, many natural and organic companies either overlook or say they can't afford to invest in it.

Here's why you should make the investment in your natural store: Category management provides strategies to better connect with consumers, develop brands, manage trade spending, optimize product placement and grow sales. Combining business intelligence, logistics data, syndicated and POS data and consumer data, true category management maximizes business results.

Category management truly is the glue that unites the different business functions. It helps retailers identify opportunities for sustainable growth, increased sales and increased foot traffic. When done correctly, it grows brands.

Are you leveraging category management to the fullest or not at all? Here are the key aspects for success:

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Instead of a canned, topline "one size fits all" report, seek out custom data that can help you maximize sales of your natural products.

Everybody loves the promise of a "one size fits all" solution. But the reality is that no two natural businesses are alike and each requires different solutions.

A lot of solution providers claim to offer all the answers for you to grow your business. There are a plethora of topline/canned reports that are a great, quick, overview of your… Show more

Instead of a canned, topline "one size fits all" report, seek out custom data that can help you maximize sales of your natural products.

Everybody loves the promise of a "one size fits all" solution. But the reality is that no two natural businesses are alike and each requires different solutions.

A lot of solution providers claim to offer all the answers for you to grow your business. There are a plethora of topline/canned reports that are a great, quick, overview of your competition, their sales performance, the market and anything that might affect your sales.

At first glance, topline reports will answer some of your important questions. However, the challenge is that your business is a lot more complex than any canned or topline reports can address.

That's because topline reports:
• Are designed to work for everyone equally—including your competition
• Do not give you a competitive advantage
• Are generic and do little to answer most pressing business questions
• Are frequently hard to read and understand
• Don't provide actionable insights

Most solution providers offer little support, if any, on such reports. All the data in the world is only as good as the person who interprets it, which is why it's wise to consult with an expert who can help you maximize your results.

Data that helps grow your business

Imagine reading a report that tells you that your business is healthy nationally, but fails to identify threats and specific markets where you're losing share to your competition. Wouldn't it be more helpful to identify a potential threat before the competitors take your sales? The right reports will help you proactively manage your business and crush your competition.

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The natural products industry has enjoyed significant growth from being in the global spotlight. The signs are everywhere. You can't turn on the TV, listen to the radio or read a blog or newspaper without somebody touting the benefits of organic. Combined with staunch advocacy and awareness for purer/healthier "better-for-you" product alternatives, organic is now the center of national conversations.

What's next is for the natural products industry to take a leadership role in its own… Show more

The natural products industry has enjoyed significant growth from being in the global spotlight. The signs are everywhere. You can't turn on the TV, listen to the radio or read a blog or newspaper without somebody touting the benefits of organic. Combined with staunch advocacy and awareness for purer/healthier "better-for-you" product alternatives, organic is now the center of national conversations.

What's next is for the natural products industry to take a leadership role in its own growth and development. You've probably heard the phrase, "Lead, follow or get out of the way." Our industry can no longer afford to be pulled into the mainstream.
Traditional CPG companies should not have the largest voice in marketing and merchandising natural and organic products. Smaller companies may have fewer resources at hand, but they can still take steps to participate in the discussion, if not lead it.

What will it take for organic growth in 2013?

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Customers want what they want when they want it. Here's how out-of-stocks could be crippling your natural store's revenue.

Several years ago, a study from RIS News and IHL Group found that mainstream retailers lose $93 billion in annual sales due to out-of-stock products. The two biggest reasons why? Buyers' planning mistakes and store management failing to execute. As a result, reducing out-of-stocks has been a major focus for traditional CPG ever since, but natural CPG can also… Show more

Customers want what they want when they want it. Here's how out-of-stocks could be crippling your natural store's revenue.

Several years ago, a study from RIS News and IHL Group found that mainstream retailers lose $93 billion in annual sales due to out-of-stock products. The two biggest reasons why? Buyers' planning mistakes and store management failing to execute. As a result, reducing out-of-stocks has been a major focus for traditional CPG ever since, but natural CPG can also benefit.

The pitfalls of out-of-stocks

Out-of-stocks continue to be a huge problem in the natural channel, especially during promotions. It can even cause consumers to shop elsewhere. That equates to lost sales and/or a lost opportunity to bring new customers into the category. While consumers typically shop at many stores across several channels, the objective for the savvy retailer is to meet all their customer’s needs in a single trip. Out-of-stocks greatly reduce the likelihood of this happening.

Plus, promoting a brand that a consumer can't find on the shelf is a huge waste of money and gives customers a negative impression of the brand and your store. Some customers will only give a brand one opportunity to convince them of a repeat purchase. Out-of-stocks make brands especially vulnerable to being discontinued at retail.

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Meet all your customers' wants and needs with a "discipline-at-shelf" strategy for merchandising your retail displays.

The secret to success for most items is that they are easily found by consumers. Simply put, if your item isn't on the shelf, consumers can’t buy it.

“Disipline-at-shelf” means having a merchandising plan for retail displays that meets your customers' needs and wants. Having the right assortment, or product mix, is what drives sales and ultimately satisfies… Show more

Meet all your customers' wants and needs with a "discipline-at-shelf" strategy for merchandising your retail displays.

The secret to success for most items is that they are easily found by consumers. Simply put, if your item isn't on the shelf, consumers can’t buy it.

“Disipline-at-shelf” means having a merchandising plan for retail displays that meets your customers' needs and wants. Having the right assortment, or product mix, is what drives sales and ultimately satisfies consumers and keeps them coming back. 

Another important factor is ensuring that you have the right quantity on the shelf: not enough of an item can lead to out-of-stocks while too much will limit your selection and increase your inventory costs.

The item-cost ratio is referred to as an item's space to sales. The object is to maximize your space to sales for each item, category and for the entire store. This needs to be balanced between the need to satisfy your customers and offer a competitive set of items also offered by your competition. The competitive set should include top selling items available across the market. 

Benefits of discipline-at-shelf

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Meet your business goals in 2013 with these 10 New Year's resolutions for natural manufacturers.

As you begin to develop your business strategy for 2013, it's wise to first reflect on the prior year: Did you reach your goals?  Did you achieve all your business objectives? What would you have done differently given the opportunity?  Did your actual results match the goals/projections you set?  
This is the first place to start when building your 2013 business strategy. Then, look at… Show more

Meet your business goals in 2013 with these 10 New Year's resolutions for natural manufacturers.

As you begin to develop your business strategy for 2013, it's wise to first reflect on the prior year: Did you reach your goals?  Did you achieve all your business objectives? What would you have done differently given the opportunity?  Did your actual results match the goals/projections you set?  
This is the first place to start when building your 2013 business strategy. Then, look at the goals themselves. Were your 2012 goals reasonable?  Don’t set goals that are out of your reach. For example, if you grew sales 5 percent in 2012, don’t set a goal of 50 percent in 2013. 

Your goals in 2013 should be SMART: Specific, Measurable, Attainable, Realistic and Timely. Resolutions are similar to goals.  They encourage and motivate us. Set your business goals six months ahead on the calendar in order to give yourself time to achieve them.
In 2013, resolve to:

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by Daniel Lohman, CPSA in New Hope 360 Blog

True category management is the great equalizer between companies of all sizes. In 2013, it's time to invest in and develop strong category management strategies.

Most companies in the natural channel don't fully understand how category management principles can help them grow sustainable sales and compete head-to-head with any Consumer Packaged Goods (CPG) company.

Category management is far more than pulling canned reports… Show more

by Daniel Lohman, CPSA in New Hope 360 Blog

True category management is the great equalizer between companies of all sizes. In 2013, it's time to invest in and develop strong category management strategies.

Most companies in the natural channel don't fully understand how category management principles can help them grow sustainable sales and compete head-to-head with any Consumer Packaged Goods (CPG) company.

Category management is far more than pulling canned reports, keeping store shelves full or populating templates. True category management involves adopting advanced strategies to help target core consumers by satisfying their wants and needs better than the competition. It grows the category at the retail level in addition to the brand level and enables small natural brands and retailers to compete head-to-head with the largest mainstream retailers and brands on the planet.

A comparison might be the difference between a major league baseball team and a high school rec-league. My mission is to level the playing field between natural and conventional with my articles.

Strategies to grow your natural brand

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Dec. 18, 2012
Daniel Lohman CPSA in Supermarket News Refresh

Natural products, healthy living and "better for you products" will continue to be the hot new trend well into next year. Most every retailer is jumping on the bandwagon. The challenge is that not every retailer is fully committed to the strategy of developing this opportunity. The retailers that adopt a solid plan and commit to satisfying the natural consumer’s needs will position themselves to grow sustainable… Show more

Dec. 18, 2012
Daniel Lohman CPSA in Supermarket News Refresh

Natural products, healthy living and "better for you products" will continue to be the hot new trend well into next year. Most every retailer is jumping on the bandwagon. The challenge is that not every retailer is fully committed to the strategy of developing this opportunity. The retailers that adopt a solid plan and commit to satisfying the natural consumer’s needs will position themselves to grow sustainable sales.

There are a lot of studies highlighting the explosive growth in natural/ healthier/“better for you” products while traditional grocery items are declining in many categories. The committed natural consumer wants a lot more than just a natural claim on a label. They want full transparency and to be able to pronounce all of the ingredients on the package. This is important to know as conventional retailers strive to understand and learn more about the natural consumer. These staunch advocates are leading the way in changing the industry and the food that we eat through initiatives and trends like Just Label It, Non-GMO, fair trade, whole grains and gluten free, among others.

Retailers need to understand these initiatives and how they came about to better know the committed natural consumer. They can provide valuable insights into what consumers think and want. Retailers that commit to fully addressing the needs of the natural consumer will gain a better share of this growing segment, especially as “non-natural” consumers embrace this initiative.

Strategies to grow natural sales
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A "one size fits all" merchandising strategy won't work in today's competitive environment. Here are seven merchandising strategies for natural manufacturers and retailers.

Merchandising strategies are a valuable component of any retailer’s success, but a “one size fits all” approach will not work in today's competitive environment. Strategies should vary by category and sometimes by segment depending on the overall objective for the brand, category and retailer. Each strategy should be… Show more

A "one size fits all" merchandising strategy won't work in today's competitive environment. Here are seven merchandising strategies for natural manufacturers and retailers.

Merchandising strategies are a valuable component of any retailer’s success, but a “one size fits all” approach will not work in today's competitive environment. Strategies should vary by category and sometimes by segment depending on the overall objective for the brand, category and retailer. Each strategy should be carefully crafted to target a specific objective such as increasing foot traffic, inviting new customers to try your brand, developing loyal committed customers or increasing sales.

Developing and managing merchandising strategies should be a collaborative effort shared between the retailer and the manufacturer. Manufacturers are the true experts in their brand’s categories.  A smart retailer should take full advantage of the manufacturer’s knowledge and expertise to help grow the category and sales.

The category captain role is a key factor in a savvy retailer’s success. This person is a trusted business partner and ally to the retailer. Together, the retailer and manufacturer can help satisfy a greater number of consumers, grow the category, increase consumer takeaway and beat the competition.

Strategies include a variety of components: pricing, promotion, product placement, ad support, consumer education, etc. Together, the different components help achieve the retailer’s goal. Here are seven to try.

7 effective category merchandising strategies
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Private label growth has stalled, but that doesn't mean consumers aren't looking for private label on your shelves.

Private label growth has stalled according to the SymphonyIRI Group's MarketPulse survey, "Reversal of Fortune: National Brands Pick Up Gains on Private Label."
Nearly half (47%) of consumers buy more private label today than they did before the economic downturn began, while one-in-three U.S. shoppers is actively seeking out store brands in an effort to save money… Show more

Private label growth has stalled, but that doesn't mean consumers aren't looking for private label on your shelves.

Private label growth has stalled according to the SymphonyIRI Group's MarketPulse survey, "Reversal of Fortune: National Brands Pick Up Gains on Private Label."
Nearly half (47%) of consumers buy more private label today than they did before the economic downturn began, while one-in-three U.S. shoppers is actively seeking out store brands in an effort to save money, reads the report.

However, national brands are growing share despite innovative new private-label offerings. This is largely due to branded products becoming more competitive while being able to better highlight their value and benefits compared to private label. So, is private label going away?

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There is a shift happening in our community. More consumers are shopping for natural products from mainstream retailers. Kroger is committed to becoming the leading retailer of natural products. The Organic Trade Association states that 54% of organic food sales in 2010 came from conventional retailers while natural retailers were responsible for only 39%. Kroger's move comes as more large grocery chains look to meet ramped-up consumer demand for organic and natural foods, said Nate Filler… Show more

There is a shift happening in our community. More consumers are shopping for natural products from mainstream retailers. Kroger is committed to becoming the leading retailer of natural products. The Organic Trade Association states that 54% of organic food sales in 2010 came from conventional retailers while natural retailers were responsible for only 39%. Kroger's move comes as more large grocery chains look to meet ramped-up consumer demand for organic and natural foods, said Nate Filler, president and CEO of the Ohio Grocers Association. This represents a tremendous competitive threat to natural retailers.

This also means more opportunities for top-selling brands to be represented in a greater number of stores across multiple channels. While this is an incredible for opportunity for top natural brands, the growth in mainstream retailers could potentially stifle natural retailers' growth. This will have a dramatic impact on small local and regional natural brands.

Mainstream retailers like Kroger cherry-pick the top selling national brands in addition to providing a wide variety of natural private label items. Their reach and their ability to connect with consumers is far greater than any other retailer including Whole Foods Market.

The challenge mainstream retailers face is choosing the right assortment that meets their customer’s needs. Mary Ellen Adcock, Kroger's Vice President of Natural Foods Division stated, "It's easy for them (consumers) to find natural and organic products that they know they can trust, and to have more choices of both ... choice drives incremental sales." This creates an opportunity for top natural brands to win-over mainstream consumers and build a loyal following that will help support natural retailers.

Focus on five key strategies
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December 5, 2012
Daniel Lohman, CPSA

There is a shift happening in our community. More consumers are shopping for natural products from mainstream retailers. Kroger is committed to becoming the leading retailer of natural products. The Organic Trade Association states that 54% of organic food sales in 2010 came from conventional retailers while natural retailers were responsible for only 39%. Kroger's move comes as more large grocery chains look to meet ramped-up consumer demand for… Show more

December 5, 2012
Daniel Lohman, CPSA

There is a shift happening in our community. More consumers are shopping for natural products from mainstream retailers. Kroger is committed to becoming the leading retailer of natural products. The Organic Trade Association states that 54% of organic food sales in 2010 came from conventional retailers while natural retailers were responsible for only 39%. Kroger's move comes as more large grocery chains look to meet ramped-up consumer demand for organic and natural foods, said Nate Filler, president and CEO of the Ohio Grocers Association. This represents a tremendous competitive threat to natural retailers.

This also means more opportunities for top-selling brands to be represented in a greater number of stores across multiple channels. While this is an incredible for opportunity for top natural brands, the growth in mainstream retailers could potentially stifle natural retailers' growth. This will have a dramatic impact on small local and regional natural brands.

Mainstream retailers like Kroger cherry-pick the top selling national brands in addition to providing a wide variety of natural private label items. Their reach and their ability to connect with consumers is far greater than any other retailer including Whole Foods Market.

The challenge mainstream retailers face is choosing the right assortment that meets their customer’s needs. Mary Ellen Adcock, Kroger's Vice President of Natural Foods Division stated, "It's easy for them (consumers) to find natural and organic products that they know they can trust, and to have more choices of both ... choice drives incremental sales." This creates an opportunity for top natural brands to win-over mainstream consumers and build a loyal following that will help support natural retailers.

Focus on five key strategies
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As Kroger pledges to lead in natural products retail, it's time for natural retailers to unite in order to stay relevant—and in business.

Kroger recently announced its commitment to becoming the leading retailer of natural products. More than ever before, it's time that natural retailers unite to take a proactive leadership role in the natural industry.

The news goes well beyond disagreements on the definition of "natural" or the importance of non-GMO. This cuts to the very heart… Show more

As Kroger pledges to lead in natural products retail, it's time for natural retailers to unite in order to stay relevant—and in business.

Kroger recently announced its commitment to becoming the leading retailer of natural products. More than ever before, it's time that natural retailers unite to take a proactive leadership role in the natural industry.

The news goes well beyond disagreements on the definition of "natural" or the importance of non-GMO. This cuts to the very heart of our industry and challenges our future.

Kroger's announcement means greater opportunities for top-selling brands to be represented at their stores. While I applaud their commitment to natural brands, their success could potentially stifle local and national natural retailers' growth. This will also have a dramatic impact on small local and regional natural brands.

Mainstream retailers like Kroger cherry pick the top-selling natural brands in addition to providing a wide variety of natural private label items. Their reach and their ability to connect with consumers is far greater than even Whole Foods Market.

This is an unparalleled threat to the natural products industry. Kroger has some of the strongest consumer loyalty rates in the entire food industry. Their true strength is converting consumers to loyal shoppers. The Organic Trade Association states that 54 percent of organic food sales were in mainstream retailers (in 2010). That number will only continue to grow.

It's time that natural retailers maximize each and every selling opportunity. This means turning occasional shoppers into committed loyal shoppers.

Focus on five key strategies
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An effective pricing strategy can be the difference between being perceived as a market leader or follower. Which of these strategies do you use?

An effective pricing strategy can be the difference between being perceived as a market leader or follower. The wrong strategy can strip margin and make it difficult to survive or push consumers away encouraging them to shop your competition. Similar to the story “The Three Bears,” consumers will shop around to find the price that’s “just… Show more

An effective pricing strategy can be the difference between being perceived as a market leader or follower. Which of these strategies do you use?

An effective pricing strategy can be the difference between being perceived as a market leader or follower. The wrong strategy can strip margin and make it difficult to survive or push consumers away encouraging them to shop your competition. Similar to the story “The Three Bears,” consumers will shop around to find the price that’s “just right.

The goal in retail is to keep existing customers coming in while inviting new customers to shop your store. Your pricing strategy has the power to convert new customers into loyal committed shoppers and should be collaboration with manufacturers.   
  
To achieve this goal, your pricing strategy must have elements that clearly communicate your commitment to being a leader in the community and the market. Top selling items in each category should be priced equal to or very close to your competitors. This allows consumers to compare your prices against another store, giving them the perception that your prices are fair. When combined with a strong brand strategy, this allows you to compete more effectively with other retailers in your market. For example, the top-selling diaper brand “Widgets” is priced similar at all the stores in the market—including your store.
   
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You've worked hard to become a category leader and get on the shelf, but are you maintaining and protecting your shelf placement?

You've worked hard to develop a great product that will revolutionize the category and meet unmet consumer needs. You've managed to gain distribution at key retailers and consumers love your product. So, what are you doing to keep your product on retail shelves? 

Most manufacturers and retailers put all their effort and energy into getting a product on… Show more

You've worked hard to become a category leader and get on the shelf, but are you maintaining and protecting your shelf placement?

You've worked hard to develop a great product that will revolutionize the category and meet unmet consumer needs. You've managed to gain distribution at key retailers and consumers love your product. So, what are you doing to keep your product on retail shelves? 

Most manufacturers and retailers put all their effort and energy into getting a product on the shelf. Few put as much energy into keeping it there. This is a huge mistake that can ultimately affect the strength of your entire brand portfolio.

Getting the product on the shelf is sometimes easier than keeping it there. Some manufacturers rely on brokers and distributors to manage their distribution. While this can be an effective strategy to getting your product on the shelf, it is not necessarily the best strategy to manage the an ongoing relationship with the retailer. 

For this reason, I recommend that manufacturers partner with their brokers and distributors to work closely with the retailer to help support your brand. Together, you can aggressively work to develop, implement and execute strategies to grow sustainable sales for both you and the retailer. You can leverage their strengths to maximize your growth. 

Tips for staying on the shelf

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I was quoted in an article written by Bob Vosburgh
Click on the link to read the entire article.

Other retailers are moving in this direction, including Safeway. Some stores in the national chain now feature unique merchandising schemes for gluten-free products. Here, separate displays can be justified as a retailer’s attempt to avoid cross-contamination, or simplify the shopping process, say experts.

“There are sections like gluten free which benefit from segregation because… Show more

I was quoted in an article written by Bob Vosburgh
Click on the link to read the entire article.

Other retailers are moving in this direction, including Safeway. Some stores in the national chain now feature unique merchandising schemes for gluten-free products. Here, separate displays can be justified as a retailer’s attempt to avoid cross-contamination, or simplify the shopping process, say experts.

“There are sections like gluten free which benefit from segregation because the consumer looking for these products has a very specific, exact need,” said Dan Lohman, strategic advisor at Category Management Solutions.

When it comes to the broader natural and organic categories, however, segregation isn’t as simple a decision. The wide variety of products needs to be presented in such a way that the consumer is still willing to shop the “store within a store.” It’s a format that can fall flat if not properly executed, experts say.

In Giant’s case, the section has been dubbed Nature’s Promise, named after the chain’s private-label line of natural/organic products. Many of the items have representation in the new aisle. Indeed, store brands are another key reason why segregated merchandising is on a rebound of sorts.

“There are really a lot of retailers out there pushing their private label because that’s how they make some good money,” said Lohman. Show less

Take advantage of these simple merchandising strategies and make it easy for customers to shop your store frequently. 

Proper item placement can be the difference between success or failure for any brand, item and even retailer. Consumers want stores that are easy to shop and sections that are well merchandised. Busy customers hate scavenger hunts. They appreciate retailers with clean, well-organized and easy to shop stores. 

One way to achieve this is to merchandise like items… Show more

Take advantage of these simple merchandising strategies and make it easy for customers to shop your store frequently. 

Proper item placement can be the difference between success or failure for any brand, item and even retailer. Consumers want stores that are easy to shop and sections that are well merchandised. Busy customers hate scavenger hunts. They appreciate retailers with clean, well-organized and easy to shop stores. 

One way to achieve this is to merchandise like items together with a similar theme or function, such as gluten-free. These categories appeal to very specific consumers who are typically committed, loyal shoppers, willing to spend more than the average consumer to buy quality products that meet a specific need. According to a recent study done by Boulder Brands, “A gluten-free shopper spends about three times more per store visit.  The gluten-free shopper spends almost $100 and the average American shopper spends about $30.  However, if the section isn’t there, they are going to leave.” These are your best customers and are definitely worth your focus.

A savvy retailer will dual merchandise top items from the sections within regular categories. This strategy invites customers to try new items and to learn about products that support specific needs such as gluten free. For example, merchandise gluten-free crackers in both the gluten-free section and the cracker category. Once your customers try and like a gluten-free item, they might then try other gluten-free items. Then they become one of your committed loyal gluten-free shoppers.
 
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The perfect balance of the 5P's will increase consumer traffic in your store, build consumer loyalty, and help you remain competitive in any economy.

The 5P's (planning, promotion, placement, pricing, and people) are the cornerstone of any solid retail strategy. This is true for both manufacturers and retailers. Working together, they can develop strategies that benefit both. The primary objective of any strategy should be to create loyal committed customers. 

Consumers are… Show more

The perfect balance of the 5P's will increase consumer traffic in your store, build consumer loyalty, and help you remain competitive in any economy.

The 5P's (planning, promotion, placement, pricing, and people) are the cornerstone of any solid retail strategy. This is true for both manufacturers and retailers. Working together, they can develop strategies that benefit both. The primary objective of any strategy should be to create loyal committed customers. 

Consumers are inundated by offers from competing retailers every day. Most consumers cherry-pick specific retailers to fill only part of their needs. A solid strategy should include addressing as many consumer needs as possible; the goal is to keep them shopping at your store instead of your competitor.

Do this through The 5P's

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According to a recent article in Supermarket News (“Wal-Mart to in vest $6 Billion Price”),Wal-Mart has made a commitment to be the recognized low price food retailer in 31 markets. Their efforts include TV ads comparing Wal-Mart prices to other key retailers including Safeway, Kroger, Walgreens and others. The commercials focus on the cost savings from shopping at Wal-Mart compared to shopping at the competition by comparing actual register receipts. 

Tom Peters, in his book titled “In… Show more

According to a recent article in Supermarket News (“Wal-Mart to in vest $6 Billion Price”),Wal-Mart has made a commitment to be the recognized low price food retailer in 31 markets. Their efforts include TV ads comparing Wal-Mart prices to other key retailers including Safeway, Kroger, Walgreens and others. The commercials focus on the cost savings from shopping at Wal-Mart compared to shopping at the competition by comparing actual register receipts. 

Tom Peters, in his book titled “In Search Of Excellence”, states that “bigness is automatically badness”. He was talking about the inability of large corporations to be nimble and easily meet the consumer’s ever-changing needs. Wal-Mart’s sheer size makes it difficult for the retailer to compete head-to-head with others on their competitors “turf”. In other words, don't fight the battle Wal-Mart wants to draw you into. Instead, focus on your strengths. This is good news for smaller retailers, especially natural retailers. 

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Strategic category management can help drive sales. Follow these expert tips to get the highest return. 

Gluten free. Raw. Functional foods. Nondairy milks. Nut and seed butters. Energy bars. Body washes. Given the incredible amount of new product launches—more than 39,000 introduced in the U.S. in 2011 and nearly 24,000 in 2012 through July, according to global market research firm Mintel—it’s no wonder retailers need a way to get a handle on the mad marketplace.

Natural industry… Show more

Strategic category management can help drive sales. Follow these expert tips to get the highest return. 

Gluten free. Raw. Functional foods. Nondairy milks. Nut and seed butters. Energy bars. Body washes. Given the incredible amount of new product launches—more than 39,000 introduced in the U.S. in 2011 and nearly 24,000 in 2012 through July, according to global market research firm Mintel—it’s no wonder retailers need a way to get a handle on the mad marketplace.

Natural industry strategic advisor

1.) Mix it up. Stock the right assortment of products to keep your current customers happy and increase foot traffic. Your mix should include top-selling items found at other retailers in your market as well as niche and specialty goods. New customers will want to search for their favorite brands before trying new products. Your goal is to satisfy all of your customers’ needs while they shop in your store.

2.) Define category purpose. Identify the role you want a category to play within your store. A category can be used to gain new customers, support routine shopping needs, create a destination for seasonal and occasional purchases, offer a one-stop shop or provide convenience. You may assign a different function to each category depending on the type of customer you want to attract. Build your sales strategies around this important step.

3.) Differentiate from your competition. Large conventional retailers do a lot of things right. But instead of competing with them on price alone, focus on what natural products stores can do better, such as offering superior customer service, knowledgeable sales support, healthier products, community commitment and more selection. In other words, exceed your customers’ expectations. 

 –Daniel Lohman, owner of Category Management Solutions in Littleton, Colo.

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Can't afford to run a loyalty program in your store? Turn to social media instead to foster loyal customer relationships.

The cornerstone of retail is the 4P's: product, placement, promotion and pricing. The perfect balance of these will increase consumer traffic in your store, build consumer loyalty and help you remain competitive in any economy.  

The challenge for some retailers is that they are so focused on the 4P's that they overlook the fifth: people. Retailers focused on… Show more

Can't afford to run a loyalty program in your store? Turn to social media instead to foster loyal customer relationships.

The cornerstone of retail is the 4P's: product, placement, promotion and pricing. The perfect balance of these will increase consumer traffic in your store, build consumer loyalty and help you remain competitive in any economy.  

The challenge for some retailers is that they are so focused on the 4P's that they overlook the fifth: people. Retailers focused on people (the customer) are committed to making the shopping experience more enjoyable and easier for their loyal customers. They put the consumer first—always. 

Some mainstream retailers rely on club cards and loyalty cards to connect with core customers. Their programs reward loyal customers for shopping at their stores. Some provide discounts, reduced gasoline prices, special incentives and custom couponing. The programs do a good job keeping the retailer connected with the consumers through regular mail, emails, phone apps and more.

But consumer loyalty programs can be very complex, expensive, difficult to manage and even more difficult to implement. They're usually not a good fit for the small retailer. 

Using social media to create loyalty

Smaller retailers, especially natural retailers, can effectively use social media to remain connected to their consumers. The best part: Many social media tools are free. An effective social media campaign can be every bit as effective as the larger mainstream grocer’s loyalty programs.  Show less

Here's why manufacturers should put as much effort into sales and retailer relationships as they do developing their natural products.

Selling in the natural channel means wanting more: greater transparency; simple easy-to-read and understand labeling; high-quality ingredients; a commitment to fair trade; a high degree of integrity in the way we conduct ourselves; and a commitment to sustainability. 
The level of innovation and creativity that companies put into their brands, their… Show more

Here's why manufacturers should put as much effort into sales and retailer relationships as they do developing their natural products.

Selling in the natural channel means wanting more: greater transparency; simple easy-to-read and understand labeling; high-quality ingredients; a commitment to fair trade; a high degree of integrity in the way we conduct ourselves; and a commitment to sustainability. 
The level of innovation and creativity that companies put into their brands, their packaging, the company name and the products they sell is impressive. The harsh reality is that consumers won’t buy what they can't find. Companies need to put an equal amount of effort, passion and enthusiasm toward their efforts with the retailer. 

This then begs the question: Why wouldn't you put the same passion and energy into growing your business as you put into your products?

Most companies say that they want more sales. While some companies don't know where to find solutions, others make excuses such as, "It's worked in the past" or "Everyone else is doing it this way." 

Are you happy with the status quo?

If you continue doing what you've always done the results will always be the same.

Are you happy with your sales growth? Do you have full distribution of all your key items? Are you happy with the return you get for each promotion? If you can't answer these questions with an emphatic "Yes!" then it's time to re-think your go-to-market strategy.   

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There are essentially two types of retailers, those so focused on the four P’s that they overlook the fifth, and retailers that focus on people first. The difference highlights their commitment to making the shopping experience more enjoyable and easier to their loyal customers. 

Some retailers choose product assortments that feature a few select brands, while others choose product assortments that address the needs and wants of their customers. While the first restricts choices and… Show more

There are essentially two types of retailers, those so focused on the four P’s that they overlook the fifth, and retailers that focus on people first. The difference highlights their commitment to making the shopping experience more enjoyable and easier to their loyal customers. 

Some retailers choose product assortments that feature a few select brands, while others choose product assortments that address the needs and wants of their customers. While the first restricts choices and usually tries to encourage consumers to support the retailer’s private-label, the second strategy provides a good representation of available brands.  It doesn't attempt to limit consumer’s choices. 

Think about how your customers shop your store.  Few of your customers are committed natural shoppers.  They are looking to the retailer to educate them on the benefits of the “healthy for you products”.  They want a store that is easy to shop. A properly executed merchandising strategy will build loyalty with your existing consumers while making new customers feel welcome.

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Consumer decision trees could be the difference between a strong committed loyal customer and an occasional shopper. What is it and why should you use one?

The consumer decision tree, which shows how consumers shop a category, is perhaps the most difficult concept for retailers and manufacturers to act on. However, understanding consumer buying habits gives retailers and manufacturers a leg up on the competition and demonstrates their commitment to satisfy their… Show more

Consumer decision trees could be the difference between a strong committed loyal customer and an occasional shopper. What is it and why should you use one?

The consumer decision tree, which shows how consumers shop a category, is perhaps the most difficult concept for retailers and manufacturers to act on. However, understanding consumer buying habits gives retailers and manufacturers a leg up on the competition and demonstrates their commitment to satisfy their customers.

Essentially, the consumer decision tree identifies and prioritizes all the decisions a consumer makes while shopping. Conversely, a poorly constructed consumer decision tree serves to only frustrate and alienate customers.

Benefits for retailers
Consumer decision trees seek to understand how customers shop the retailer. Most stores are laid out in a “race track” format with staples positioned around the outside of the store; produce, deli, dairy, meat, seafood and bakery. The center of the store usually includes dry grocery and health and beauty aids. Items in these sections are designed to augment choices made on the outside of the store. Margins for the retailers are typically higher along the “race track” as opposed to center store.

A well-constructed consumer decision tree gives the retailer an opportunity to encourage up selling. For example, merchandising super-premium items next to category favorites. Consumers are happy to pay extra for items with a greater perceived value. 

Benefits for manufacturers
Manufacturers typically spend a lot of money hiring independent third-party consultants to construct consumer decision trees. The trees include research on how consumers shop and how they perceive the importance of each segment within the category. These models are typically extremely accurate and capable of increasing consumer loyalty within the brand and retailer.

What does a consumer decision tree look like?

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How do you make the most of your external data on sales, shipment, inventory, consumer insights and more? Here are five questions to ask data providers.

Analyzing data can be extremely confusing for manufacturers, but it doesn't need to be. Think of data as business intelligence. What are your needs and objectives? What questions do you want answered? This will help you determine where to start.

There are several data sources available to any manufacturer: 

Internal data… Show more

How do you make the most of your external data on sales, shipment, inventory, consumer insights and more? Here are five questions to ask data providers.

Analyzing data can be extremely confusing for manufacturers, but it doesn't need to be. Think of data as business intelligence. What are your needs and objectives? What questions do you want answered? This will help you determine where to start.

There are several data sources available to any manufacturer: 

Internal data includes your shipment data (data that tracks the movement of your products to distributors and retailers); your promotional data (trade spending including all the costs associated with a promotion); and inventory data (your inventory of products ready to be shipped).  

External data includes syndicated data, consumer data, retailer point of sale data (POS) and distributor/wholesaler data.  

Data can be viewed in several ways. Some companies offer basic, canned reports that are great for a quick reference/review of your sales. Topline reports, however, do not give you a competitive advantage. Custom reports offer a specialized in-depth look at your business and are the single best tools to help manage your business and grow your brand.

How do you make the most of all this data? Here are the five key questions to ask your data provider:

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By Daniel Lohman, CPSA in New Hope 360 Blog

Successful product promotions don't just grow sales. Here's what you should consider before running your next promotion.

Almost every CPG company runs promotions but are they always effective? 

The truth is, less that 50 percent of promotions are effective. Most companies promote their products without a clear strategy to grow sales and increase brand awareness. While it's important to support key retailers, a promotion that… Show more

By Daniel Lohman, CPSA in New Hope 360 Blog

Successful product promotions don't just grow sales. Here's what you should consider before running your next promotion.

Almost every CPG company runs promotions but are they always effective? 

The truth is, less that 50 percent of promotions are effective. Most companies promote their products without a clear strategy to grow sales and increase brand awareness. While it's important to support key retailers, a promotion that doesn't increase sales and foot traffic in the category is simply a waste of money.
The kind of sale you want

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CEO Stephen Hughes of Smart Balance shares five top strategies to successfully grow a natural brand.

At the Product-To-Shelf Luncheon Keynote at Natural Products EXPO East 2012, Stephen Hughes, the CEO of Smart Balance, shared his strategy for building a portfolio of winning brands by creating a health and wellness platform to address consumers' nutritional needs, specifically by eliminating gluten in foods. 

His core message was "business is about placement and velocity." Tom… Show more

CEO Stephen Hughes of Smart Balance shares five top strategies to successfully grow a natural brand.

At the Product-To-Shelf Luncheon Keynote at Natural Products EXPO East 2012, Stephen Hughes, the CEO of Smart Balance, shared his strategy for building a portfolio of winning brands by creating a health and wellness platform to address consumers' nutritional needs, specifically by eliminating gluten in foods. 

His core message was "business is about placement and velocity." Tom Peters, author of In Search Of Excellence once said that “business is simply about making things and selling things.” Placement and velocity are how you get products on retailers' shelves and into consumers' hands. 

Here are Hughes' top five strategies to successfully grow a brand. Applying these to your business will provide you with a competitive advantage.   Show less

Using a scorecard to map your natural company's success

I spoke with a multitude of manufacturers, retailers, distributors, brokers, solution providers, and attendees all looking for proven sustainable business building practices this past week at EXPO East. The most common need expressed at the show was scordcarding.

Learn more about other proven strategies, read the article

As natural competition increases so does the expectation retailers have of the brands they carry. Does your sales story resonate?

Most companies tend to focus its message on what's important to them. Unfortunately, few take the time to build the message around their customers' needs. The same holds true for retailers. 

A lot of the natural products on retailer shelves today are distributed because the buyer liked the sales person. This is called “relationship selling.” In this… Show more

As natural competition increases so does the expectation retailers have of the brands they carry. Does your sales story resonate?

Most companies tend to focus its message on what's important to them. Unfortunately, few take the time to build the message around their customers' needs. The same holds true for retailers. 

A lot of the natural products on retailer shelves today are distributed because the buyer liked the sales person. This is called “relationship selling.” In this instance, little thought or science is put behind the purchasing decision. Decisions are based primarily on emotion and gut as opposed to facts. 

Fact-based selling relies on the relationship but is supported by solid facts that support the benefit to the consumer as well as the retailer. This can include the brand's commitment and plan to support the retailer, the market, the category, consumer insights, the potential sales for the item, schematic recommendations and more.  

Decisions based solely on item performance sometimes undervalue consumer buying habits along with their needs and wants. It can actually reduce category sales. 

Your sales story on (natural) steroids

In today's highly competitive environment, retailers want to know a lot more than the different colors or flavors of a product. They also want to know who buys the product, how it will help them grow category sales and drive traffic into their store, and how the new item will impact the bottom line. 

To differentiate your brand from the other brands on the shelf, consider adding facts to your sales story. Do this by incorporating a mini-category review into each selling opportunity, including new item presentations.
 
Read the rest of the story at: http://newhope360.com/blog/land-shelf-space-perfect-sales-pitch Show less

Should you hire a targeted business consultant beyond your broker and distributor? Here are the reasons why, plus what to look for when hiring.

It's nearly impossible to be a true expert in every aspect of your natural business. Consultants are a great way to fill in the gaps and add value. A business consultant is any advisor who provides advice and support, including brokers and distributors.

Why hire a consultant?

In an ever-changing economy, consultants can identify… Show more

Should you hire a targeted business consultant beyond your broker and distributor? Here are the reasons why, plus what to look for when hiring.

It's nearly impossible to be a true expert in every aspect of your natural business. Consultants are a great way to fill in the gaps and add value. A business consultant is any advisor who provides advice and support, including brokers and distributors.

Why hire a consultant?

In an ever-changing economy, consultants can identify hidden opportunities that you may have overlooked or didn't know about. Consultants can provide you with a competitive advantage while reducing costs and streamlining processes, and help provide a gateway to targeted retailers. A talented consultant can be worth his or her weight in gold.

"But," you say, "my broker and distributor provide all the services I need."  

Brokers and distributors provide a valuable service to the natural industry. Without them, many natural and mainstream brands would not find their way to store shelves. Brokers and distributors wear many hats including retail and administrative support.
The challenge is that they typically represent multiple clients at retail and have limited resources that need to be spread between those clients. Unfortunately, they can't be experts in everything.

Sometimes a specialist is needed to help differentiate your brand and help you take a leadership role in the category. An analogy might be the difference between a general physician verses a neurosurgeon. It’s sometime wise to use both a generalist and a specialist, as they both provide value but in different areas. 

How do you maximize your broker/consultant ROI?

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Ever wonder what differentiates top consumer packaged goods companies from the competition?

Here's the answer: The GMA recently released a study titled "Winning Where It Matters," based on its 2012 Customer and Channel Management survey.

Even in a changing and challenging retail landscape, the survey results suggest that "a company employing winning practices can successfully tackle external challenges and set itself apart from the competition."

What does this mean for… Show more

Ever wonder what differentiates top consumer packaged goods companies from the competition?

Here's the answer: The GMA recently released a study titled "Winning Where It Matters," based on its 2012 Customer and Channel Management survey.

Even in a changing and challenging retail landscape, the survey results suggest that "a company employing winning practices can successfully tackle external challenges and set itself apart from the competition."

What does this mean for natural retailers and manufacturers?

This is good news for progressive companies interested in taking a leadership role in its categories and with its retail partners. The competitive landscape is growing increasingly more challenging and the big differentiator is a solid strategic plan.

How do you achieve this? "By placing forward-looking strategic bets, leveraging data and advanced analytics to drive decision-making, collaborating more effectively with top retail customers, and building industry-shaping capabilities."

Other characteristics of winners according to the report:
*Companies that are 50% more likely to invest in sales technology and five times more likely to view retailer collaboration as a strategic priority.
*Winners don't rely on tools alone: They complement quantitative analysis with quantitative insights.
*Winners monitor performance and manage brokers on a more granular level.

Important lessons for the natural channel

The natural channel is the incubator for the healthy living movement. The opportunities are great for any company willing to invest in its future and willing to take a leadership role in our industry.

This means maximizing all available resources, owning every part of the sales process, relying more heavily on their own sales people than on brokers, maximizing efforts at shelf, developing targeted marketing programs that drive customer traffic, and paying particular attention to core consumer's wants and needs.

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Aug. 27, 2012
By Daniel Lohman, CPSA in New Hope 360

Some mainstream retailers believe that consumers will search out natural and organic products at any cost. But is that the case?

Does a successful merchandising strategy involve integrating or segregating your natural product mix? It's a hot debate, but I think there's a clear winner.

First, the basics. Categories are divided into segments and segments are defined by the way the consumer shops the category. For… Show more

Aug. 27, 2012
By Daniel Lohman, CPSA in New Hope 360

Some mainstream retailers believe that consumers will search out natural and organic products at any cost. But is that the case?

Does a successful merchandising strategy involve integrating or segregating your natural product mix? It's a hot debate, but I think there's a clear winner.

First, the basics. Categories are divided into segments and segments are defined by the way the consumer shops the category. For example, powder or liquid laundry detergent. These decisions make up the consumer decision tree, the choices the consumer makes when making a purchasing decision.

Knowing how the consumer shops the category will help retailers develop an effective merchandising strategy. This is information that should be supplied by the manufacturer, assuming it knows its customers' needs.

Read the rest of the story at: http://newhope360.com/blog/top-tips-merchandise-natural-conventional-products Show less

By Daniel Lohman, CPSA in New Hope 360 Blog 
Aug 20, 2012

Shelf presence is one of the most important marketing tools to ensure your brand's success. Follow these tips to get the best shelf placement.

You worked hard to develop your product and get it into the marketplace. Gaining distribution at key retailers is the blueprint to any brands' success. So how do you identify the best stores to carry your product? 

Read the rest of the story at:… Show more

By Daniel Lohman, CPSA in New Hope 360 Blog 
Aug 20, 2012

Shelf presence is one of the most important marketing tools to ensure your brand's success. Follow these tips to get the best shelf placement.

You worked hard to develop your product and get it into the marketplace. Gaining distribution at key retailers is the blueprint to any brands' success. So how do you identify the best stores to carry your product? 

Read the rest of the story at: http://newhope360.com/blog/attract-customers-better-shelf-placement
Show less

New via New Hope 360: Increase your market basket size over your competitors' with these 10 retail strategies for serving natural shoppers.

The term "market basket "(or shopping basket) is perhaps one of the most important terms in retail.

Manufacturers and retailers strive to understand consumer buying habits including the average list of items found in customer’s shopping baskets during each visit. This allows retailers to customize product assortment, marketing strategies… Show more

New via New Hope 360: Increase your market basket size over your competitors' with these 10 retail strategies for serving natural shoppers.

The term "market basket "(or shopping basket) is perhaps one of the most important terms in retail.

Manufacturers and retailers strive to understand consumer buying habits including the average list of items found in customer’s shopping baskets during each visit. This allows retailers to customize product assortment, marketing strategies, in-store merchandising, promotions and pricing to better meet consumer needs.

This is far less intrusive then the tracking cookies websites use to monitor your activities; the personal information you freely provide to Facebook; or the smart phone application that automatically provides coupons when you enter your favorite retailer.
While we are all concerned about privacy concerns, we desire convenience and appreciate the local retailer that welcomes us by name when we enter the store.

Read the rest of the story at: http://newhope360.com/blog/top-10-strategies-increase-your-market-basket-size Show less

Less than half of all trade promotions fail to increase brand or category growth. Here's how to maximize your trade marketing in seven key areas.

A recent study by Nielsen claims that less than half of all trade promotions fail to increase brand or category growth. This is unfortunate, because the main goal of trade marketing is to do just that: grow one's brand by increasing the demand at the retailer/distributor level.

Trade marketing is typically the largest line item on a… Show more

Less than half of all trade promotions fail to increase brand or category growth. Here's how to maximize your trade marketing in seven key areas.

A recent study by Nielsen claims that less than half of all trade promotions fail to increase brand or category growth. This is unfortunate, because the main goal of trade marketing is to do just that: grow one's brand by increasing the demand at the retailer/distributor level.

Trade marketing is typically the largest line item on a company balance sheet, but is your trade marketing effective? Here are seven areas to focus on for sustainable brand development.

The Rest Of The Story At New Hope 360 - click on the link below
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How does a natural retailer stay in business when threatened by big box competition? By following this simple strategy.

Editor's note: This is a follow up to a previous blog by our guest blogger Daniel Lohman regarding the challenge and threat to our industry's future/Is Kroger threatening your natural store? 5 strategies to take

There are a lot of opinions and advice around strategies to protect natural retailers against mainstream retailers like Kroger or Walmart. I'd like to… Show more

How does a natural retailer stay in business when threatened by big box competition? By following this simple strategy.

Editor's note: This is a follow up to a previous blog by our guest blogger Daniel Lohman regarding the challenge and threat to our industry's future/Is Kroger threatening your natural store? 5 strategies to take

There are a lot of opinions and advice around strategies to protect natural retailers against mainstream retailers like Kroger or Walmart. I'd like to share a story about a local retailer who took on a large box store and is still thriving today. The parallels between natural and conventional retailers are identical. 

Read the rest of the story: http://newhope360.com/blog/how-retailers-can-grow-sales-competitive-market Show less

By Daniel Lohman, CPSA in New Hope 360 Blog 
July 23, 2012

All products are not created equal. Is private label the best strategy for your natural store?

Would you rather have a high-penny profit on select items or build a long-term business strategy that brings loyal customers to your store? The answer may affect how you approach private label products.
Private label has a place on retailer shelves but should not be the primary strategy for any retailer who wants to grow… Show more

By Daniel Lohman, CPSA in New Hope 360 Blog 
July 23, 2012

All products are not created equal. Is private label the best strategy for your natural store?

Would you rather have a high-penny profit on select items or build a long-term business strategy that brings loyal customers to your store? The answer may affect how you approach private label products.
Private label has a place on retailer shelves but should not be the primary strategy for any retailer who wants to grow sustainable sales. Customers shop brands first and usually turn to private label as a cost savings. Most consumers will gladly pay a premium for quality.
Read the rest of the story at :

http://newhope360.com/blog/private-label-good-natural-retail Show less

Is Kroger threatening your natural store? 5 strategies to take

By Daniel Lohman, CPSA in New Hope 360 Blog 
July 16, 2012

As Kroger pledges to lead in natural products retail, it's time for natural retailers to unite in order to stay relevant—and in business.

Kroger recently announced its commitment to becoming the leading retailer of natural products. More than ever before, it's time that natural retailers unite to take a proactive leadership role in the natural… Show more

Is Kroger threatening your natural store? 5 strategies to take

By Daniel Lohman, CPSA in New Hope 360 Blog 
July 16, 2012

As Kroger pledges to lead in natural products retail, it's time for natural retailers to unite in order to stay relevant—and in business.

Kroger recently announced its commitment to becoming the leading retailer of natural products. More than ever before, it's time that natural retailers unite to take a proactive leadership role in the natural industry. 

The news goes well beyond disagreements on the definition of "natural" or the importance of non-GMO. This cuts to the very heart of our industry and challenges our future. 

Kroger's announcement means greater opportunities for top-selling brands to be represented at their stores. While I applaud their commitment to natural brands, their success could potentially stifle local and national natural retailers' growth. This will also have a dramatic impact on small local and regional natural brands.

Mainstream retailers like Kroger cherry pick the top-selling natural brands in addition to providing a wide variety of natural private label items. Their reach and their ability to connect with consumers is far greater than even Whole Foods Market.

This is an unparalleled threat to the natural products industry. Kroger has some of the strongest consumer loyalty rates in the entire food industry. Their true strength is converting consumers to loyal shoppers. The Organic Trade Association states that 54 percent of organic food sales were in mainstream retailers (in 2010). That number will only continue to grow.

It's time that natural retailers maximize each and every selling opportunity. This means turning occasional shoppers into committed loyal shoppers.

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Want to maximize the return on investment in your store? Who doesn't! Try these category management tips.

ROI (return on investment) is perhaps the easiest business concept to understand and yet the most difficult to measure. While break even is certainly better than losing money, it's difficult to fully understand what activities generate sales. 
For retailers, your goal should be to maximize the ROI for every action you take. 
 
It's easy to calculate the additional sales… Show more

Want to maximize the return on investment in your store? Who doesn't! Try these category management tips.

ROI (return on investment) is perhaps the easiest business concept to understand and yet the most difficult to measure. While break even is certainly better than losing money, it's difficult to fully understand what activities generate sales. 
For retailers, your goal should be to maximize the ROI for every action you take. 
 
It's easy to calculate the additional sales needed to justify a new sales person, a new sales strategy, a promotion or a new item in a category. But measuring category management success can be complicated by understanding what category management is and its place in your business.
 
Paying a category manager to pull reports, keep shelves full and build presentations will not provide a high return. Category management provides the highest return when used to drive sales, instead of reacting to day-to-day business needs. 
 
Category management helps new sales representatives sell more, increases sales of new items and promotional effectiveness, and it takes the guesswork out of evaluating new sales strategy results. 
 
Try these three strategies to increase your ROI using category management.

Read the rest of the story at: http://newhope360.com/blog/3-strategies-increase-your-roi-using-category-management Show less

Brokers offer a variety of services to help you grow your natural company, but are you giving up too much control? Here's how to make the most of the partnership.

Most manufacturers have a love/hate relationship with their brokers. That's because most brokers support several different brands and only have a limited amount of time to give yours the attention it needs.

Brokers and distributors provide a valuable service, allowing small organic and natural companies to grow quickly… Show more

Brokers offer a variety of services to help you grow your natural company, but are you giving up too much control? Here's how to make the most of the partnership.

Most manufacturers have a love/hate relationship with their brokers. That's because most brokers support several different brands and only have a limited amount of time to give yours the attention it needs.

Brokers and distributors provide a valuable service, allowing small organic and natural companies to grow quickly and compete across different channels and retailers. But few manufacturers have any real insight into their broker's day-to-day activities.
Some manufacturers effectively give the broker the “keys” to their company and expect them to manage all aspects of their success. This is a huge mistake! The relationship should be a true partnership.

If you want to get the most out of the relationship, you need to take a more proactive role in directing your broker’s efforts. This will dramatically improve your sales while helping you better understand your customers. 

The Rest Of The Story At New Hope 360 - click on the link below
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Predicting consumer demand and planning effective promotions of a natural product can be extremely challenging, especially for new natural or organic brands. However, this does not need to keep you up at night.

The biggest challenges are inconsistent distribution (items with spotty distribution throughout the chain), inconsistent and confusing merchandising (items not merchandised the ways consumers shop) and inconsistent promotion/pricing. These challenges are dramatically amplified by… Show more

Predicting consumer demand and planning effective promotions of a natural product can be extremely challenging, especially for new natural or organic brands. However, this does not need to keep you up at night.

The biggest challenges are inconsistent distribution (items with spotty distribution throughout the chain), inconsistent and confusing merchandising (items not merchandised the ways consumers shop) and inconsistent promotion/pricing. These challenges are dramatically amplified by unsolicited celebrity endorsements.

Solving these problems will help regulate your brand's supply and improve customer satisfaction. For natural retailers, this means you have consistent messaging to consumers as the go-to destination for "As seen on TV."

The Rest Of The Story At:http://newhope360.com/blog/3-ways-meet-consumer-demand-your-natural-store Show less

Are you making the Dr. Oz excuse or capitalizing on the Dr. Oz effect in your store? If you choose the latter, here's how profitable your store could become.

When shopping in natural stores, I frequently hear retailers give lots of excuses to justify why their products are out of stock. My least favorite is, "We sold out of the item because Dr. Oz mentioned it on his show.”
Retailers rarely, if ever, tell me when an out-of-stock item will be available. Instead, they choose to blame… Show more

Are you making the Dr. Oz excuse or capitalizing on the Dr. Oz effect in your store? If you choose the latter, here's how profitable your store could become.

When shopping in natural stores, I frequently hear retailers give lots of excuses to justify why their products are out of stock. My least favorite is, "We sold out of the item because Dr. Oz mentioned it on his show.”
Retailers rarely, if ever, tell me when an out-of-stock item will be available. Instead, they choose to blame Dr. Oz when they could be capitalizing on the opportunity to convert me into a happy and loyal customer who could refer others to their store.
Nothing is more frustrating for consumers than finding out of stock items, especially on advertised sales. Bottom-ranked, unpopular items that frequently take the place of absent top-selling items force consumers to shop other retailers.
Every shopping trip must absolutely leave a favorable impression given the number of retail choices consumers have today. Just like other consumers, if I can’t easily find what I need, I will go to another store. As the expression goes, "You never get a second chance to make a good first impression." Show less

by Daniel Lohman, CPSA in New Hope 360 Blog
May 1, 2012 1:30pm

Don't let consumer packaged goods companies dominate mainstream discussion of the natural products industry. Use this road map to take charge and accelerate your sales.

The natural products industry has enjoyed significant growth due to education and the global spotlight. The signs are everywhere. You can't turn on the TV, listen to the radio or read a blog or newspaper without somebody touting the benefits of… Show more

by Daniel Lohman, CPSA in New Hope 360 Blog
May 1, 2012 1:30pm

Don't let consumer packaged goods companies dominate mainstream discussion of the natural products industry. Use this road map to take charge and accelerate your sales.

The natural products industry has enjoyed significant growth due to education and the global spotlight. The signs are everywhere. You can't turn on the TV, listen to the radio or read a blog or newspaper without somebody touting the benefits of organic. Combined with staunch advocacy and awareness for purer/healthier "better-for-you" product alternatives, organic is now the center of national conversations.

What's next is for the natural products industry to take a leadership role in its own growth and development. You've probably heard the phrase, "Lead, follow or get out of the way." Our industry can no longer afford to be pulled into the mainstream. 

Traditional consumer package goods (CPG) companies should not have the largest voice in marketing and merchandising natural and organic products. We know the products and our consumers far better, and we should be leading that discussion.

The Rest Of The Story At: http://newhope360.com/blog/3-ways-beat-cpgs-and-fuel-organic-growth?cid=n_l360_daily Show less

Daniel is an expert in the organic and natural CPG industry. With over 20 years experience and knowledge, he is certified at the highest level of category management proficiency:
Certified Professional Strategic Advisor. 


Focused on leveling the playing field between natural and conventional CPG retailers and manufacturers, Daniel is uniquely qualified to help them get more out of their available resources. He believes that natural and organic CPG companies deserve to benefit… Show more

Daniel is an expert in the organic and natural CPG industry. With over 20 years experience and knowledge, he is certified at the highest level of category management proficiency:
Certified Professional Strategic Advisor. 


Focused on leveling the playing field between natural and conventional CPG retailers and manufacturers, Daniel is uniquely qualified to help them get more out of their available resources. He believes that natural and organic CPG companies deserve to benefit from the same practices and technologies as their conventional counterparts – without sacrificing what makes the natural channel distinctive. Daniel is a trusted and respected member of the natural community and is a writer for New Hope 360 (HTTP://NEWHOPE360.COM/BLOGGER/DANIEL-LOHMAN-CPSA). He is a staunch advocate, passionate about bringing true category management to the organic and natural channel and offers a unique and fresh perspective on the industry.

Responsible for growing sales and teaching Category Management theory and principals while at Kimberly-Clark, Unilever, and SPINS, Daniel has worked with and supported hundreds of natural and conventional manufacturers, retailers, data providers and brokers.  His extensive knowledge and expertise extends beyond that of a traditional Category Manager and has earned him recognition and a reputation throughout the industry as a thought leader. He has mentored Category Managers, is a trainer, speaker and expert panelist for the Category Management Knowledge Group.

Daniel’s “What You Need To Know” website blog provides valuable insights and has become very popular in the natural community. Daniel is internationally published and the author of “Strategic Solutions And Guide To Grow Your Natural Business”. Both his guide and blog are a great resource for any organic or natural company looking to grow their brand.
Click above to read more Show less

Article comparing mainstream merchandising strategies for natural organic products. Current strategies fail to address how consumers shop.

While there are some who would lead you to believe that all consumers will search out natural/organic product offerings at any cost, this is not the case.

Think about how your customers shop your store. Do your customers only see items that are at least 70% natural/organic when standing in front of the bread section? Of course not! Your… Show more

Article comparing mainstream merchandising strategies for natural organic products. Current strategies fail to address how consumers shop.

While there are some who would lead you to believe that all consumers will search out natural/organic product offerings at any cost, this is not the case.

Think about how your customers shop your store. Do your customers only see items that are at least 70% natural/organic when standing in front of the bread section? Of course not! Your customers see the complete assortment of breads you sell.

Are your customers only interested in natural items or do they shop at your store to buy both conventional and natural items in the same trip? If the latter is true then having items in a separate natural/organic section will cause customers to overlook other items you sell. Conversely, customers shopping the conventional section will completely ignore your natural product offerings. Integrating natural and conventional gives your customers the opportunity to compare items side-by-side and then choose what’s best for their needs while also giving you an opportunity to up-sell and convert them to natural/organic products. Segmenting the integrated section will make it more shopper friendly. This is the best of both options; a section that is both integrated AND segregated/segmented. ...........

Natural and organic retailers and manufacturers deserve to benefit from the same practices and technologies as their conventional counterparts – without sacrificing what makes the natural/organic channel distinctive. This is an area lacking in natural. Show less

Certification Highlights and Differentiates Skill Sets Daniel Lohman is certified at the highest level of CPSA - Certified Professional Strategic Advisor. He is currently a consultant with SPINS, the leading provider of data in the natural products industry. Prior to this, he was in category management with with Kimberly-Clark, Unilever and Borden. He has more than 17 years experience in CPG. In an email interview, Daniel shared his perspective about the importance of certification.

CMA:… Show more

Certification Highlights and Differentiates Skill Sets Daniel Lohman is certified at the highest level of CPSA - Certified Professional Strategic Advisor. He is currently a consultant with SPINS, the leading provider of data in the natural products industry. Prior to this, he was in category management with with Kimberly-Clark, Unilever and Borden. He has more than 17 years experience in CPG. In an email interview, Daniel shared his perspective about the importance of certification.

CMA: Why did you choose to be formally certified?

Lohman: There is a tremendous lack of standardization in the industry and the certification process was designed to correct that. I chose to get certified to highlight and differentiate my skill set. Being certified as a CPSA adds credibility to my professional resume and to every project I work on. Being certified creates unique opportunities to establish and build relationships with thought leaders in our industry.

CMA: How was the process/experience of getting certified?

Read the rest of the interview at the link above Show less