Producers are very focused on getting a quality product into the box or the bag. This is complicated and there are so many challenges to getting this done right. Inputs, labour, weather and the list goes on. Unfortunately, the work is not done when the quality product is packed. To maximize the opportunity, you need to understand your customers and find the right shelf for your products to be sold.

There is work required to find the right shelf. The right shelf will result in the best relationship between your business and your customers. When you try to put your products on any shelf, there is a much greater chance you and or your customer will not be happy and you will not generate the best return.

The right shelf is the place where they will:

Understand your product,

Treat your product properly,

Attract the consumers who are most likely to buy your product.

Finding the right shelf

You should know your product better than anyone, better than any retailer. You should have a good definition of the person who will purchase it in the store. For example, if you are producing organic products you can create a good definition of this shopper. If you supply a premium product, you know that consumer is different than most people shopping in the discount stores.

Once you define who will be buying your product, review the options for retailers. There are many formats in the market and they are all designed to appeal to different segments of the market. Yes, there is overlap for sure, but each format definitely has a target market. Identify the stores that align best with your products.

You should consider your products but also the business model you have. If your business is designed to produce a lot of volume and focus on efficiencies in your packing plant, then you probably need to put your sales efforts into the large mass merchants or big box stores. They are more aligned with your business.

If your business is designed to produce unique crops and you need a premium price, then you should consider more specialty stores. These stores like to have unique products and need smaller quantities of more items. This is very different than the big stores which are looking for bigger quantities of fewer items.

Geography, distribution and quantity are also considerations when finding the right shelf. Some retailers only have formats in specific geographies. There are many examples where formats such as Provigo, Maxi and IGA are specific to the Quebec market. You also require the ability to service the distribution network of the retailer. This can be delivered to the warehouse or, in some cases, direct to stores. It is also beneficial to find customers with the demand for the volume you have. They usually do not require you to supply all stores, but they do need a group of suppliers that can add up to the amount they need.

There are unique opportunities within the formats too

Often, we think of the retail channel being warehouse club, mass merchants, traditional grocery, discount and specialty. The following chart includes some of the stores within each segment across Canada:

There are many more stores and most would be in the specialty or traditional grocery columns. There are some stores that might not fit exactly into one column. Urban Fare  and Fresh St Market stores in British Columbia are examples. They have a specialty store focus on fresh but could be considered traditional grocery too. If you produce products that are popular with South Asian consumers, then the Chalo FreshCo stores, owned by Sobeys, might be the right shelf. This is an example of a segment, within a segment.

Prioritize the right shelf with your sales efforts

Once you have determined the right shelf within different market segments, prioritize your sales efforts. Focus on these stores. You might not always be successful with your first choice as they could have the category filled. If this happens, move to your second choice but continue to stay in contact with your first choice. You never know when something might change and the retailer will need a new solution.

Your business will be better when you have your products on the right shelf. You will be better aligned with the retailer and be able to spend more time on the things you like in your business. When suppliers and retailers are not well aligned, you will be forced to spend even more time on sales.