Economic Headwinds
This year is proving to be a difficult period for growth. Stiff economic headwinds are presenting challenges in markets around the globe. Emerging markets, with their fragmented retail landscape, can be difficult to navigate at the best of times but now the degree of difficulty seems magnified.
Yet, opportunity exists for those armed with the right knowledge, particularly when considering General Trade. Factor in the demographics of emerging markets – a rural population of 335 million people across Southeast Asia alone, and their dominant General Trade channels, and it becomes imperative to have a detailed understanding of these markets if your brand harbours any real hope of growth.
Opportunities for Brand Growth in General Trade
Historically, obtaining accurate and comprehensive data on General Trade has been notoriously difficult and many companies have yet to develop a comprehensive strategy for engaging with this sector.
To capitalize on the opportunities, brands must adopt a strategic approach that encompasses portfolio management, brand positioning, channel selection, route-to-market planning, and in-store execution. Developing a detailed plan that addresses these elements is crucial for achieving long-term success.
Market Landscape Fundamentals
Underpinning any strategic plan is market knowledge, the very building blocks of the retail landscape. How many outlets or points-of-buying are there in the universe for the product category? What is the channel structure (outlet segmentation) of the universe? How many outlets are currently covered with our brands? Is there potential to increase our coverage?
Competitive advantage can be gained from knowing how important each channel to your category is and in which channels are you winning or losing in terms of market share and channel execution.
An effective route-to-market and supply chain provides important support to your business. Do you have a line of sight and control over your distribution partners, especially where and how they sell your products? Do you have a fix on where the cost pressures are within your value chain?
Headroom
The biggest brands you can think of in snack foods, beverages, and personal care, only reach 40-50% of households in a year. For most brands, the level is far lower. The upside is that there is potentially headroom for growth and expansion even during economic tough times. In fact, it is even more important when times are challenging to double down on expanding your reach across the retail trade. It is notoriously difficult to reverse brand decline.
Recent research shows that each year without exception, approximately 50% of brands grow their footprint and 50% decline. Performance is heavily impacted by the penetration (shopper base) a brand achieves, which in turn is influenced by distribution (retail store presence).
Which side of the equation do you want to be on?
Frontline Research Group, the right research partner
Frontline Research Group (FRG), with nearly three decades of experience, stands out as a leader in General Trade market research. With a deep understanding of the sector and expertise in gathering actionable insights, Frontline are an invaluable partner for brands looking to navigate the complexities of General Trade. The company has successfully conducted retail census across the African continent, geo-mapping millions of outlets and operates eleven country retail audits. In Asia, too, Frontline has conducted retail research projects in several Southeast Asian markets and in Japan.
If you feel your brand’s ambitions in General Trade would benefit from sound data and analytics, driven by rigorous research methods, please reach out to Frontline Research Group. We can help provide better decision making, competitive advantage, cost savings and increased efficiency at a tactical and strategic level.
For more information or demonstration contact Jack de Wet, Divisional Manager, on +27 (0)86 999 0407 or mobile +27 (0)78 422 9479 or email jack.dewet@frontlineafrica.com.
