Optimising product placement for tools and building supplies.
Introducing a new product is a big deal. Whether it’s a new innovation or an upgrade, how you promote it is crucial.
Get it right, and sales will soar along with your brand’s market presence. Get it wrong, and potential opportunities and profits might slip away. New product promotions require serious skill and knowledge to execute successfully.
At AHM, we bring extensive experience in retail merchandising, backed by a creative team with a keen eye for detail.
As leaders in the field for decades, we have successfully launched countless products. Here’s how to get it right and what can happen if you don’t.
The need for speed to market
In the fast-moving world of retail, speed to market can make or break a product launch. A quick rollout ensures that items reach shelves efficiently, allowing brands to capture consumer interest and take advantage of market trends. Delays can lead to missed opportunities, such as competitors introducing similar products.
To gain a competitive edge, brands must move quickly in launching new products. Rapid introductions create excitement in the market and capture consumer interest. Gathering early feedback allows for strategic adjustments, enhancing product performance and fostering customer loyalty.
Setting the recommended retail price (RRP) accurately is vital. An appropriate RRP reflects the product’s value and aligns with market expectations, influencing consumer perception and purchase decisions. Pricing too high can deter buyers, while pricing too low may diminish perceived quality. Striking the right balance enhances competitiveness and optimises profit margins.
Product placement and visibility
Once products are on shelves, effective positioning is essential for success. Simply having an item available does not guarantee sales. Even a high-quality product can struggle if it is not strategically positioned within the store. A smart product placement plan ensures that your item is showcased in high-traffic areas or at eye level to attract customers and drive sales.
Misplaced products often get lost in the retail shuffle, resulting in poor sales and a disconnect with potential customers. When items aren’t positioned effectively, they fail to attract attention, leading to missed engagement opportunities.
Our team at AHM has diverse backgrounds in grocery, hardware, retail and hospitality. This experience helps us provide high-quality, cost-effective solutions for new product promotions. No matter the channel or industry, we know how to use product placement to enhance visibility, raise awareness and drive sales.
The role of education in successful promotions
Education is often overlooked, yet it is essential for successful new product promotions. Salespeople in the retail environment are the front line of your product’s interaction with consumers. If they lack knowledge or enthusiasm about the product, sales will inevitably suffer.
Ensuring store employees understand the key features and benefits of your product significantly impacts its performance on the shop floor. That’s why our process includes thorough briefing and training for sales staff.
Our goal is to build their confidence so they can effectively address customer queries, promote the product’s unique features and drive sales. Education is a long-term investment that always pays off.
What happens when launches go wrong?
Poorly executed product promotions or launches that cut corners to save time and money, can have significant consequences. In the long run, this approach will not yield savings. If a new product promotion is mishandled, it may be perceived as a failure before it even has a chance to succeed.
When a new product isn’t properly merchandised, it typically results in disappointing sales for the supplier. Poor sales figures can lead to a reduced shelf life or even the complete removal of the item from the retailer’s offering. This misstep can damage a brand’s reputation, making future product launches more difficult.
Slow sales prevent the product from becoming a core line. In the case of major retailers like Bunnings or Spotlight, a failed product launch can make reintroducing the item nearly impossible.
New product launches can be challenging, so our team takes a proactive approach. Zac Nicol, our National Sales and Account Manager, says, “At AHM, we ensure that the national sales manager and state sales managers are involved in the initial rollout of each product to identify any unexpected issues or potential setbacks.”
Talk to the retail merchandising experts
Getting a new product promotion right requires a careful balance of speed, visibility, education, and execution. The effectiveness of a product rollout is gauged by sales figures and feedback from retail outlets and team members.
At AHM, we ensure every new product promotion is successful, giving each product the best chance to thrive in a competitive marketplace and become a core line item.
Don’t leave your success to chance. If you have a new or updated product, contact AHM today for a quote and discover how we can support your retail success with professional merchandising, product placement, product training and more.
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