What Retail Buyers Want - Value Proposition

TRKR regularly talk to retail category buyers to find out what’s currently important to them and, more specifically, what they expect from food & drink manufacturers when they pitch to them.

A common theme is Value Proposition…

What’s a Value Proposition?

Retail Buyers will ask you “why will a consumer choose your product, over the other options available to them in the category?” 

The same retail buyer might also ask “why should I choose to put your product on the shelf, in place of what’s already there?”

This is important to the buyer because they need to know that you will help them grow their category. You need to bring something different, and better to their shelves. Something that adds “value” to their shopper’s lives. Generally they won’t have extra shelf space for your product – another product will have to come off the shelf first. Your job is to convince them a) what that “victim sku” is, and b) why your product will sell more/provide more margin/attract new customers. They have little interest in replacing like with like.

“NPD often fails as it’s creating a ‘me too’ version. There is no compelling reason to choose one product over another” - Tesco buyer

”If a product fails in the first year it’s because the product is not right. It doesn’t fill a gap or is actually just another version of something that’s already out there and better.” - Asda buyer

So you’ll need a compelling argument – ideally backed with evidence of consumer insight or data.

The trouble is that many manufacturers aren’t able to articulate this to buyers. They either don’t have a VP, or just don’t know what it is.

Some examples? 

• Seltzers Value Proposition is being a convenient, low calorie alternative to the more calorific alcohols and RTDs. Huge appeal to those watching their weight but still wanting to drink

• Belvita were the first biscuit brand to offer “breakfast on the go” by combining a more healthy biscuit with a yoghurt filling

• Knorr Stock Pots were a more convenient option to stock cubes as you don’t have to dissolve them in water first

The common theme here is that they all did a different “job” for the consumer…but we’ll talk about “Jobs to be done” another time.

Value Proposition is often a new format that solves a problem or makes life easier for the consumer. Proper NPD or EPD.

Of course you can also stand out with new flavours, by being local, more sustainable…anything that gives the consumer a real reason to choose you.

How do you prove it?

It’s one thing claiming a VP, but how do you prove it, either internally or to the Retail Buyer? At TRKR we test this for our clients with large scale (1,000+) consumer surveys, combining actual category behaviour with direct feedback for real shoppers. As well as evidence of VP, it also enables us to create a profile of the shoppers most likely to buy your product.

To find out more, click on either button, or email mark@trkr.co.uk