Drive sales by avoiding spotty distribution and confusing merchandising with these simple tips natural retailers can implement now.

Daniel Lohman, Organic Industry Strategic Advisor

June 1, 2012

2 Min Read
3 ways to meet consumer demand in your natural store

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 (Dr. Oz, anyone?). 

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." (Read more about avoiding trouble with Dr. Oz's legal team.)

Here are 3 easy solutions for natural retailers

  1. Stock top-selling items across the market, in addition to niche/specialty products. This makes your store more shopper-friendly and inviting to consumers. You can then encourage customers to trade up your specialty items.
     

  2. Sections should be merchandised the way consumers buy. Mixing segments within a category can be confusing to shoppers. Keep like segments together. For example, don't mix broth and soup. Instead place the soups together in a section where customers can easily compare different brands of tomato soup.
     

  3. Stock enough product to support each promotion. Out of stocks communicate that you don't understand consumer demand. Properly plan for and get commitments from manufacturers and distributors to fully support the promotion. Promotions should focus on items currently in stock at every store. Other items should include a limited stock disclaimer in the promotion's ad.

Having the right data can reduce and even eliminate future sleepless nights. While canned reports provide a quick topline overview, custom ad hoc reports can help you grow sustainable sales and help meet, and even exceed, your objectives. Most canned reports don't address these specific business concerns and won't help you in the above situations.

You need reports that provide actionable insights. This is where you might consider hiring a talented category manager—someone with the necessary skills to help you compete with even the largest and most sophisticated CPG manufacturers. 

Daniel Lohman is the owner of Category Management Solutions (CMS) which provides innovative strategic solutions for natural and organic CPG companies interested in gaining a significant competitive advantage.

About the Author(s)

Daniel Lohman

Organic Industry Strategic Advisor, CMS4CPG (Category Management Solutions)

Daniel Lohman is an expert in the organic and natural CPG industry. With more than 20 years experience, 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 manufacturers and retailers, Lohman is passionate about helping 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. Lohman is a trusted and respected member of the natural community, a Natural Products Expo speaker, and a writer for Supermarket NewsNatural Food Merchandiser and newhope360. 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 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. 

Lohman is internationally published and the author of Strategic Solutions And Guide To Grow Your Natural Business and the What You Need To Know blog.

Category Management Solutions (CMS4CPG) provides innovative strategic solutions for natural and organic CPG companies interested in gaining a significant competitive advantage. CMS4CPG provides companies with actionable insights to assist them better connect with consumers, helping them "win-at-shelf." 

Follow Lohman on TwitterLinkedIn and Facebook. Lohman lives in Colorado, is a member of Naturally Boulder and can be reached at [email protected] or 303-748-3273. 

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