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Case Study: Consumable Product Placement Project
"Lawrence Merchandising Support Spurs Sagging Snack Sales”
Low retail sales of new snack product requires extra attention to boost 4th quarter sales.
A nationally known producer of a new snack consumable product worked diligently to secure a prime end cap location with Target during the 4th quarter and was frustrated by slow sales during the holiday season. Based on our long standing partnership with Target, Lawrence Merchandising was recommended by the Target buyer as a great resource for reaching the product at each store and working with store personnel to ensure sales could be maximized. Target has recognized Lawrence Merchandising as a preferred vendor who has handled several of their own brands with regular frequency and successful execution. Lawrence’s familiarity of Target stores, policies, procedures and regular service in this retailer proved to be beneficial in quickly addressing the situation and finding a solution to help boost performance of the new product.
Our Role:
To work with the store and identify potential reasons why the new snack consumable product was not performing to plan and to assist the store in addressing out-of-stock issues while ensuring product sell through.
The Challenge:
A new snack item was offered for the first time in this retailer. In an effort to brand the new item in the marketplace, the vendor negotiated a quarterly end cap in some Target stores during the holiday retail season. Three weeks after the end cap set date, only one third of the stores were reporting sales. The challenge was to determine the factors contributing to low product performance and to quickly identify solutions to increase sales.
The Solution:
Target recommended Lawrence Merchandising as a resource for service with a presence in all locations. Lawrence was contacted and was able to develop a plan to quickly address the clients concerns. Within one week, Lawrence Merchandising reps were deployed to all stores nationwide. During the scheduled one week service, Lawrence was able to ensure that the product was out on the floor and set to planogram in every Target store.
The Result:
The snack company realized an immediate 35% lift across the entire retail chain as documented by sales data provided by the client. Lawrence Merchandising ensured the product was on the shelf and sellable, resulting in these higher sales figures. It does not stop here. The relationship between the retailer and the snack company was further strengthened through the added support during a time when the retailer was already taxed with keeping up with the demands presented by day-to-day business during the hectic holiday season. Based on the success of the sales and service of the product, this retailer placed the product permanently in the snack check lanes in every store nationwide. Lawrence Merchandising executed the snack lane flawlessly, resulting in even higher ongoing retail success for this client.
