Inflation has tipped volumes into a downward trajectory, leaving suppliers searching for where to grow value with their customers.
For several years, the lever of price has been an easy way to drive value for both the customer (especially those with private labels) and the suppliers, while volumes have been relatively stable.
Historically, innovation has been a great provider of growth; however, in the current market, with supply chains under pressure in both sourcing raw materials and costs, it’s becoming more and more expensive to take innovation to market.
Fortunately, over the past decade, the more organised FMCG and liquor suppliers have moved away from the expensive promotions that often create a shopper behaviour of buying on discount as opposed to recruiting new shoppers and rewarding loyalty.
Speaking of loyalty, this has very much moved to the retailer side of the strategy as they focus on investment in mechanics to own the shopper data.
The challenge we are facing is how do we accelerate our teams' understanding of how best to create value.
So, where to start…?
You need to have a very clear category vision, based on insights, trends, and performance. Your customer will want to know where you see the category going and what role your brands play in the category. Your teams will need the ability to articulate the category vision and (most importantly) sell in an account plan that is connected to your category vision and the customer objectives.
You will also need to have a set of trading terms that support the account plan and ladder to the category vision. Your account plans need to capture the omni-channel implementation and be presented through the lens of the shopper, customer, and supplier.
At TNG, we have been supporting our suppliers in building, selling, and negotiating robust customer plans, always through the lens of the shopper, supplier, and customer. Through this process, we build commercial teams' confidence to navigate the annual commercial process with retailers, while connecting the supplier and customer strategic houses.
Our dedicated SCOPE process centres on how to execute your Omni-channel account planning program to help your teams create joint value and sell in your account plans.
If you’re looking to provide your team with confidence and create joint value outside of price, please reach out to the team: apac.info@totalnegotiation.com