Bernardo Gutierrez
In order to enter and grow within the Hispanic market in the United States, you must have a correct positioning strategy. To penetrate the market effectively, the following steps must be followed to be able to generate incremental sales and position the value offer of your brand. We have successfully implemented this strategy for more than 20 years for our clients.
The correct mix of marketing variables will make if you have success or not to position your offer in these two main areas:
1.- Value offer for your customer
The value offer for the customer lies mainly in having a quality product and the price that a customer is willing to pay for that quality. The product has to fulfill its promise of quality so people will like it, but it also has to meet the correct price range that the consumer is willing to pay. Otherwise we can hear testimonies like this: "Your product is delicious, but I am not willing to pay what you want for it, it is very nice and delicious but I am not going to pay it"
2.- Value offer for the commercial chain
The value offer for the commercial chain lies in the margin they earn with your product. The commercial chain must meet at least the standard or it will not be attractive to have the product on its shelves.
What we are going to hear from them will be the following: "People do want to buy your jam for the dollar, but you are giving me only 20% to earn, it does not work for me, I have to earn 30%" So that's where the negotiation comes in.
How to reach a price strategy?
In order to generate the correct balance between the price to the public and the retail price that maintains an attractive margin for the chain, a marketing intelligence research must be done and you have to make a position strategy for your product so you can say:
“The retail price and the price to the public is going to be set at X amount of money”
To generate incremental sales, what do you have to do?
The research analyzes the competitor's product line and the margins of the chain in order to arrive at the opening negotiations in the market segment for your product with a solid strategy. Fulfilling this, the natural result will be to create a firm and ready-to-grow distribution.
How to expand the distribution?
The best and most natural way to expand distribution is to generate success case stories. So you can reach other negotiations and say: "In this store they have my product, it is selling very well." Organically the word of mouth spreads and other stores start contacting us, “Hey, you know what? They told me that you are selling this product in this store, I really like the product and the rotation is very good, I am very interested, I buy from this distributor ”.
As the distribution grows, your sales grow and as consumers go to those stores and buy your product again, incremental sales or what we call the "repeat sell" will start to generate.
How are incremental sales achieved?
When expanding the distribution, the following conditions are met, creating a virtuous circle.
- The consumer repeat and buy again
- Increase the number of points of sale
- Increase the number of fronts of your product in the store
- Special exhibitions.
Having a front is when they put a front of 2 cans or 2 beds on the shelves and as sales increase, the fronts increase. Little by little this terrain is being gained in order to reach the special exhibitions.
These special displays are when very attractive offers are set in the store in privileged places with proven products, that sells a lot. Not only you need to have a good presence on the shelf, but you also need get these exhibitions showing that the product has a high turnover, showing that people buy it and it is obviously at a good price.
At CPG WISE we take you by the hand throughout this process so that you can generate the incremental sales that your company wants in the United States market.
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