3 tips for small & medium sized Food & Drink suppliers when using market data to pitch to retail buyers
This week at the NEC in Birmingham, Small to Medium Food & Drink suppliers will be showcasing their wares with the aim of creating new opportunities and capturing the attention of trade buyers. From the Food & Drink Expo to the Farm Shop & Deli show, it’s going to be the biggest yet since the pandemic.
What do these smaller suppliers have in common, when it comes to trying to break into major retailers?
Most know they need market data, but many don’t have the resource or expertise to know how to use it effectively or affordably.
One thing is for sure though. Retailers expect suppliers to have a good knowledge of the category they are entering or looking to increase their presence in. To a retail buyer, arriving without market data, you’re just another supplier with their own opinion.
How can suppliers arm themselves with the right market data?
Tip #1 - Understand the key questions you’re looking to answer, then work out what data you need for that
If you ask for the world, you’ll get the world back! What do we mean by this? If you’re looking to enter the Crisps and Snacks category, do you really need to know everything about that category? Not really. What can help your time, effort and budget is to think of the key questions you’re looking to answer, the assumptions you have about the category and then use this to steer your brief to the data provider.
Top questions that our clients ask us include:
What are the top flavour trends in the category?
Which formats are winning?
Which products are under-performing that we can target?
Start with the questions and then you don’t need to pay for data you don’t need!
Tip #2 - Consider the needs of the retail buyer
Retail buyers don’t have the time, bandwidth or interest in sitting through a 50-slide pitch. They just want the reassurance that you’ve done your homework. That you know your stuff. That your claims have validation behind them.
“Buyers don’t have the time to go and research whether a product a supplier is pitching to us is right for our stores. We rely on suppliers to come armed with relevant data and insights. Too often suppliers turn up with a nice new product, but nothing to back it up with.” Sainsbury’s buyer 2024
As a team, think of all the questions a buyer might throw at you to help you prepare. Why should they lean forward and be interested in your product? What’s in it for them and the customers who shop in their stores? What’s it worth to them?
What evidence can you give them to make their decision easy?
Consider the needs of retail buyers beforehand to ensure you’re as prepared as you can be
Tip # 3 - Do your homework - what market data is out there, and how best to access it (and use it properly)
There are many different sources of market data to choose from, so start by thinking about which are the most appropriate to answer the questions that you want to answer.
For example:
Which products are winning and losing in the category?
For this we would suggest EPOS (Electronic Point of Sale) data. It’s accurate to the £ as it’s based on every transaction that goes through the till across the main grocery multiples. NIQ and Circana are your two main providers of this data in GB. Both are good and credible sources, but mindful that NIQ include transactions from Aldi and Lidl whereas Circana EPOS data doesn’t……yet.
This data will help you understand how products in your category are performing based on volume (units/Kg/Ltrs) and spend. It’ll also provide you with Rate of Sale data (Units and Spend), which is a true measure of product performance across the average store a product is listed in.
What factors are driving growth or decline in my brand?
For this, the best source would be Consumer Panel data. There are two main Panel providers in the GB market, with both NIQ and Kantar having a continuous panel of 30,000 households, the latter increasing their panel to 55,000 households by 2026.
This data looks at individual shoppers and their behaviour. What they buy, who they are, how they are changing their behaviour over time. It’s a rich data set that can really help you understand the movement in a brand, sector or category.
Don’t start with ‘I need data’. Start with the question you’re trying to answer and then work back to the most appropriate source.
Why is all this relevant to small and medium Food & Drink suppliers attending the events at the NEC in Birmingham this week? Because we’ll be there!
If you want to make best use of market data and/or want to know more about where to start and how to navigate it, come and meet the TRKR team at Stand FF291.
Otherwise, feel free to get in touch with mark@trkr.co.uk