As exporters we need to grasp the market trends. It’s our job to know what is selling where, and how we might be able to find the gaps in categories for new products. But you can’t just walk into a supermarket and ask the manager for his sales spreadsheets, you have to be a little more subtle!
Store checks are an invaluable step in a product's path to market that involve walking the aisles of different stores to get market insights on the categories and products in your roster. Not only are they a cheap and highly efficient use of your time, but with the right processes, they’ll save you the financial risk and headaches of a failed product launch.
This is how we do them.
Step one: set yourself up for success
Always do your own store check, even if you do one later with a client — not only is it quicker and more subtle than walking around with the CEO of the hottest new snack brand but you also won't be influenced by outside factors or persuasive conversation.
The store next to the CEO’s house is likely to be the best presented and not a fair representation of the brands actual market opportunity. So go alone and do your own research first. Putting in the work prior to meeting potential clients has the added benefit of leaving you with a wealth of first hand knowledge of the market.
Because you're not just on the grocery run, you’ll need to err on the side of caution. Dress down and as you go round the store take photos on your smartphone, not a large camera. If you’re approached by a member of the store team, it’s best to be honest and open about what you’re doing. Don’t be afraid to ask questions - we’ve actually been given private tours of major supermarkets and real insider data on the categories we were researching before!
Make sure you’re hitting stores across all price ranges and varying locations. For the UK that means Waitrose / M&S for the high end through to Lidl / Aldi on the discount end and all the major players in between them. This will give you the best idea of where the categories or products you're looking to enter into the market might be best suited. We like to hire a cab straight from the station or airport, asking the driver to take us to major stores along the way.
Step two: get your information
Although we don’t have access to raw sales data, a quick trip around the aisles is enough to give us an idea of what’s hot and what's not. But how do we do it?
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First off, look at the overall size of the category fixture and the dedicated space to sub categories. If the soft drinks section is given lots of floor space, you can rest easy in the knowledge that it is selling well. Better still, if one brand is taking up half of that space, it’s safe to assume that brand has roughly half the market share.
On the flip side, look also for what is not there. If the shelf is empty, it indicates a fast moving product and as you begin to notice what’s not there, potential gaps in the market might arise. For example, is there an overwhelming amount of budget-oriented items and an opportunity for you to provide something new? Maybe a more premium offering could give consumers added quality and retailers added value? Remember also to check outside of the aisles as different stores can vary in layout. Certain goods, especially seasonal items and products that aren’t always a regular fixture like BBQ items often appear in unusual places.
Next check for promotional material. Look above the aisles for advertising, by the checkouts and on the outside of the store. What categories and products are they pushing? Does the marketing fit with your plans or is it not what you expected? Marketing gives you an insight not only in what’s likely selling well, but what stores are looking to sell more of.
Finally, don’t forget the dust test, a simple wipe of the cap or packaging of a product with your finger can tell you if the item has been sitting for a long time or is flying off the shelves!
Step three: take some notes and draw some conclusions
With all your new insights it’s time for some admin - review the photos you’ve taken and draw some conclusions from your first hand data. Ask yourself: how much space did the categories take up? How much of the total shelf space did the big players have — this should equate roughly to their market share. We’re there any brands clearly flying off the shelves? Importantly: consider where the gaps were in the market and how you could adapt or get your products in front of the retailers and onto the shelves.
Taking a small amount of time to work through what you’ve seen will provide you with the best place to move forward from. With any luck it will save you a lot of hassle, time and money, bringing success to the products you're looking to take to market.
Step four: don’t stop at step three
Stock checks shouldn’t finish when you get your product into the store. Supermarket aisles change by the day — it’s important to keep testing different stores to check whether you’re as present as you thought you would be in your fixture. Are your products on show, in stock and in the right place in multiple stores? If not, take some photographs, get hold of your distributor and get your products back in front of the consumer.
