Supermarket Promotion Quotes

Partially undermining the manufacturer's ability to assert that its work constituted a meaningful contribution to mankind was the frivolous way in which it went about marketing its products. Grief was the only rational response to the news that an employee had spent three months devising a supermarket promotion based on an offer of free stickers of cartoon characters called the Fimbles. Why had the grown-ups so churlishly abdicated their responsibilities? Were there not more important ambitions to be met before Death showed himself on the horizon in his hooded black cloak, his scythe slung over his shoulder?

The electronics effort faced even greater challenges. To launch that category, David Risher tapped a Dartmouth alum named Chris Payne who had previously worked on Amazon’s DVD store. Like Miller, Payne had to plead with suppliers—in this case, Asian consumer-electronics companies like Sony, Toshiba, and Samsung. He quickly hit a wall. The Japanese electronics giants viewed Internet sellers like Amazon as sketchy discounters. They also had big-box stores like Best Buy and Circuit City whispering in their ears and asking them to take a pass on Amazon. There were middlemen distributors, like Ingram Electronics, but they offered a limited selection. Bezos deployed Doerr to talk to Howard Stringer at Sony America, but he got nowhere. So Payne had to turn to the secondary distributors—jobbers that exist in an unsanctioned, though not illegal, gray market. Randy Miller, a retail finance director who came to Amazon from Eddie Bauer, equates it to buying from the trunk of someone’s car in a dark alley. “It was not a sustainable inventory model, but if you are desperate to have particular products on your site or in your store, you do what you need to do,” he says. Buying through these murky middlemen got Payne and his fledgling electronics team part of the way toward stocking Amazon’s virtual shelves. But Bezos was unimpressed with the selection and grumpily compared it to shopping in a Russian supermarket during the years of Communist rule. It would take Amazon years to generate enough sales to sway the big Asian brands. For now, the electronics store was sparely furnished. Bezos had asked to see $100 million in electronics sales for the 1999 holiday season; Payne and his crew got about two-thirds of the way there. Amazon officially announced the new toy and electronics stores that summer, and in September, the company held a press event at the Sheraton in midtown Manhattan to promote the new categories. Someone had the idea that the tables in the conference room at the Sheraton should have piles of merchandise representing all the new categories, to reinforce the idea of broad selection. Bezos loved it, but when he walked into the room the night before the event, he threw a tantrum: he didn’t think the piles were large enough. “Do you want to hand this business to our competitors?” he barked into his cell phone at his underlings. “This is pathetic!” Harrison Miller, Chris Payne, and their colleagues fanned out that night across Manhattan to various stores, splurging on random products and stuffing them in the trunks of taxicabs. Miller spent a thousand dollars alone at a Toys “R” Us in Herald Square. Payne maxed out his personal credit card and had to call his wife in Seattle to tell her not to use the card for a few days. The piles of products were eventually large enough to satisfy Bezos, but the episode was an early warning. To satisfy customers and their own demanding boss during the upcoming holiday, Amazon executives were going to have to substitute artifice and improvisation for truly comprehensive selection.

Do you ever run into the grocery store for two or three things, and walk out with twenty? Somewhere between the milk and bananas, you discover a cartful of things you didn’t realize you “needed!” Supermarkets are designed to promote impulse buying. High-margin, brightly packaged items are cleverly displayed to catch your eye and empty your wallet. Avoid the temptation by making a shopping list at home, and sticking to it when you get to the store. Instead

Servco Industries Bronx was one of the first Office Cleaning Service companies, over 20 years ago to introduce high speed floor care services to retail giants like Sears Holding Corp, Kmart, Sports Authority, Waldbaums Supermarkets, Atlantic and Pacific Tea Company and FAO Schwartz. Prior to using this equipment, it took four times the labor to clean stores than it does today. With new floor finishes that promote high speed burnishing, you get brilliant longer lasting great looking floors. These companies represent just a few of the corporations that Servco Industries works with today to solve their Janitorial Cleaning and commercial floor cleaning services.

Retail managers know that while their official vendors are large multinationals like Procter & Gamble and Hindustan Unilever Limited, what they are actually dealing with is someone like ‘Agarwal & Gupta Distributors’, the RS of the MNC. And so, while a good relationship with HUL can be developed by promoting their products, the truth is that a good relationship with the RS can be developed mainly by promoting his working capital availability. The RS is not merely a supplier of goods. He is a vital link in the whole retail chain and can be underestimated only at one’s peril. This is exactly what one large retail chain figured out early, and used to get the most amazing competitive advantage. Supermarket retail has a built-in advantage not available to traditional retailers. On the buying end, they buy bigger quantities and get a substantial period of time to make payment to the suppliers compared to smaller retailers, who sometimes have to pay cash on delivery. On the selling side, no customer gets credit at a supermarket. You scan, you bill, you pay and go — that’s the supermarket way. For the kirana, however, most regular customers expect a ‘khata’, a monthly account. Kirana customers buy through the month and pay only at the end. Supermarkets, by design, therefore, buy on liberal credit and sell on cash. Therefore, they are ‘cash surplus’ on a day-to-day basis. Their competitors, the kirana stores, are not. This particular retailer decided to make the payment terms more favourable to the supplier. So where the industry practice was eight days, this retailer reduced it to four days. In effect, the retailer halved the credit period, thus influencing the vendor’s working capital availability favourably. The vendor, in turn, now had a stake in the retailer’s growth and continued prosperity. The relationship soon turned into a win-win partnership. The vendor developed ingenious ways to enhance the retailer’s market share in various catchments.

But in the course of churning out new products, we came perilously close to putting ourselves out of business because we hadn’t taken into account a new phenomenon in the food business, a diabolical supermarket invention—slotting. If ever there was a dirty word in the food business, slotting is it. Competition for shelf space had always been intense, and products were selected at the whim of the supermarket buyer. Some traditional emoluments were involved in getting a new product on the shelf, like giving one free bottle for every ten purchased or offering an introductory promotion—we would lower the price and pass the savings on to the consumer, who instead of buying one