Is Your Brand at Risk?

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How Are Changes at Retail Impacting Your Brand?

Recent out-of-stocks and changing consumer shopping behavior and habits are having a significant impact at retail. The ability of a brand to absorb short-term disruptions in sales due to changes in the market is a function of its current strength on-shelf. What will be the impact of these changes on your brand?

We see three broad categories:

  • The winners: brands that will benefit
  • The losers: brands that will lose shelf space or be delisted
  • The at-risk: brands that could go either way depending on how they respond
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The Winners

Brands that have very strong equity that consumers demand or that can stay on the shelf during this crisis (think Direct Store Delivery) will aggressively grab space at retail. Consumers want your products and it’s the perfect opportunity to devise win-win strategies with retailers by reducing competitive brands while increasing space for your leading brands and also increasing space for private label. It’s SKU Rationalization in 2020.

The Losers

For the losers, it will be difficult to stay on the shelf through the crisis. Warehouse distributed products are at greater risk. Categories with strong private label sales are at risk. Even if they survive, there is likely serious damage to their distribution and brand share. The natural strategy in these sectors will be to cut costs, limit risk and be ready to return when conditions improve.

The At-Risk

These brands will probably struggle if they continue as is, but some will adapt their business models to take advantage of new and emerging opportunities. In some cases, this will build a solid foundation for success. For example, people are moving online to do their shopping. What is your position online? Have you optimized your offer?

Approach

Decision Insight recommends a proactive approach by completing a Brand Assessment in your category to determine your at-risk position or at-benefit position and then using Virtual Shopping to model potential scenarios. This way you can proactively work with retailers once the market returns or develop new markets, if that is the direction you need to go.

Click here to learn more about our approach combining Brand Assessment and Virtual Shopping to inform you where your brand ranks and how to take advantage of your position at retail.

To learn more, contact Leslie Downie.