Interdependence of Demand and Supply

A mousetrap, irrespective of how good it is, will not sell if consumers cannot find it. And irrespective of how widely it is distributed, consumers would not buy it if they do not want it. It takes both demand and supply to achieve sales.

Supply, the push factor, is largely driven by sales efforts, including the management of distribution channels and trade marketing. Yet it is also strongly influenced by the demand for the product.

Demand for a brand generates a pull in sales. It yields a return on inventory for the retailer. As a brand’s turns × earns improve, more retailers want to list it, and they are willing to allot it more shelf space. On the other hand if demand is declining, the brand’s stock turnover deteriorates, retailers reduce its shelf space, trim its range and ultimately de-list it.

While it is predominantly created through marketing efforts, demand is also influenced by availability and retailer support, and the impact of in-stores activities is growing. The consolidation in retail coupled with fragmentation of media, makes the store an attractive place to market products. Manufacturers are increasingly using in-store displays and in-store media to engage with their consumers.

In-store activities including displays, price-offs, sampling and in-store launches, raise brand awareness, shape perceptions and generate the desire among consumers to purchase the brand.

The use of in-store media on shelves (shelf talkers or shelf stoppers), floors, carts, chillers, as well as walls and ceiling is quite extensive. In-store presence of digital has been growing. Beyond signage and touch screen kiosks, we are now witnessing hectic growth in the use of mobile devices as a means to engage with shoppers.

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Online Apps to train Category Managers

Online Apps to train Category Managers

The Plannogrammer is an experiential learning facility for category managers, trade marketers, and retailers in consumer markets. Ideally suited for hybrid learning programmes, Plannogrammer imparts hands-on training in the planning and evaluation of promotions and merchandising.

It supports a collection of simulation and analysis platforms such as Promotions and Space Planner for optimizing space and promotions, Plannogram for populating shelves and merchandising, a Due To Analysis dashboard that decomposes brand sales into the factors driving sales, and a Promotion Evaluator to evaluate the volume, value and profit impact of promotion plans.