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Catching Elephant is a theme by Andy Taylor
Thinking outside the big box
Marketing firm REL knows the potential of the convenience sector. And CEO David Norbury is working hard to convince manufacturers. Chris Rolfe reports
David Norbury knows the convenience sector is thriving. His challenge is to persuade some major manufacturers to break free from their supermarket comfort zones and invest in it.
As chief executive officer of field marketing company REL, Mr Norbury’s belief in the convenience market is based on hard facts. It has a database of more than 30,000 independent retailers from which to analyse sales patterns and promotions and map customer spending. The company also lists clients such as Red Bull, Ferrero, Camelot, Kellogg’s and Campina on its books and cites IGD’s findings that the convenience sector grew 6.1% in 2009.
“Convenience is going through a renaissance after years of squeeze. It’s coming together because of a number of significant trends, such as the pressure on brands by the multiples,” he says.
Convenient promotions
Brands should reconsider the investment and energy put into convenience store promotional activity says David Norbury, chief executive officer of REL Field Marketing.
Brands have long been aware of the power of field marketing, particularly the immediacy that in-store promotions and their proximity to point of purchase brings. In recent years much of this activity has been focused on the supermarkets, but those who now fail to take note of the convenience store sector will find themselves missing out.
Worth a staggering £29bn and growing, the convenience sector continues to rally in a tough economic climate and brands are gradually reappraising the convenience opportunity. This, despite store numbers themselves declining at 1.6% is a clear indication of the growing strength of the consumer proposition and increasing store standards such as in quality, range and value for money of products offered.
A postcard from Down Under…
Taking destiny into your hands
by Stew Bailey, CEO The Bailey Group Australia
The Bailey Group here in Australia has posted good growth over the past few months and I can only attribute this to an increasing amount of companies looking to outsource more of their core business functions such as retail sales, marketing and merchandising as well as devoting more money to in-store marketing generally.
The trend seems to be that brands are facing up to the tough conditions by changing their business models and looking for ways to make their retail marketing and sales force a more flexible and variable cost.
At the same time these brands are focusing their attention much more on grassroots marketing techniques, such as in-store, to reach consumers as they make their purchase decision. So the last three feet is a vitally important battleground in which brands need to be stealing a march. This is the perfect environment for companies like The Bailey Group to flourish both here and the UK.
