Harry Kennedy

The #1 defining factor for success in building a CPG brand in retail can be explained as follows: Brand A negotiates ranging in as many stores as possible, arranges promotions with head office, checks sales data, hopes for the best. Brand B builds a field sales team big enough to reach at least 20% of stores on a regular basis, ensuring product is actually on shelf and ticketed. They execute promotions, offer value to the retailer consistently by building displays and providing sampling or promotions, and in turn get additional space. Brand A only ever gets product on the shelves of 70% of the supposed “doors” ranged. Aggregate sales data reflects this and they struggle at the next range review. The buyer says, “well, we need to reduce the range because it’s not meeting category hurdle rates.” Brand B sees inevitable problems early and often and is able to address them. Brand B has a much more comprehensive ranging on shelf of stores that were supposed to be ranged. They gain additional space in many of those stores and skew the aggregate sales numbers positively. These behaviors and results compound over time in either direction. Brand A withers and becomes a niche product sold in independents and mostly online if at all. Brand B becomes a force. Buyers ask for more products, different pack sizes, the brand grows from strength to strength. Was it mercurial marketing wizardry that brought about the success of Brand B? No, it was the basic blocking and tackling. Disciplined execution and consistency are what brings 95% of success for CPG brands in retail.