Data Bases • Custom Term Papers • Free Term Papers • Free Research Papers • Free Essays • Free Book Reports • Plagiarism? Links • Top 100 Term Paper Sites • Top 25 Essay Sites • Top 50 Essay Sites • Search 97,000 Papers @ DirectEssays.com • Search 101,000 Papers @ ExampleEssays.com • Search 90,000 Papers @ MegaEssays.com Free Essays • Term Paper Sites • Chuck III's Free Essays • Free College Essays • TermPaperSites.com • My Term Papers • Get Free Essays • Essay World • Planet Papers	Search Lots of Essays Back to Subjects - Marketing Space management Space management In the highly competitive world of fast moving consumer goods (FMCG’s), the battle for proper exposure to consumers has never been so intense. Fast moving consumer goods, or FMGC’s as they are commonly known, are products which are the common staples of everyday life, such as food items, toiletries, cleaning products, and beverages. For the purposes of this assignment, I will assume the role of the marketing manager of a manufacturer of toothpaste. The market for toothpaste is focused across the range of consumers, and includes both the low end and higher range of the consumer FMCG marketplace. The winners in the race to sell greater quantities of FMCG’s will inevitably be the manufacturers and distributors who are able to secure the largest quantity and highest quality shelf space in retail outlets, thereby gaining the greatest amount of mindspace in the mind of the consumer. Since the shelf space in a given retail outlet is owned entirely by the retailer, it is the manufacturer or distributor who is able to present the most compelling value proposition to the retailer who will ultimately gain control of the retailer’s shelf space. Accordingly, in order for our toothpaste manufacturer to be successful in the battle to control consumer mindspace, we must first be successful in his battle with the retailer to gain sufficient exposure to shelf space. From the perspective of the retailer, the equation is simple. Shelf space is a resource, and it must be properly exploited in order to yield the highest return. This is known as space management, and while it seems to be a simple concept, it is ultimately the yardstick by which the retailer’s success will be measured. The retailer must carefully take into consideration the demographics and customer profiles of his clientele, so that he is in a position to make informed stocking decisions concerning his shelf space. These decisions should reflect the personal tastes and buying patterns of his clientele, which must be researched very carefully. This is where manufacturers and distributors have been able to exert some level of influence over the decisions made by the retailer. While retailers may know a great deal about their clientele, it is impossible for them to know a great deal about all of the products that their clientele may wish to purchase, or in fact which products are desirable to a specific customer group. As marketing manager in a leading toothpaste manufacturer, it is my job to know which of my products appeal to different market segments, and accordingly, which products to suggest to the retailers we serve. Manufacturers and distributors of specific products are able to provide the retailer with a great deal of intelligence concerning the marketing appeal of their products, which specific products appeal to each type of consumer, and how should these products be placed within the store in order to attract the greatest amount of consumer mindspace. It is commonly known that consumers develop a great deal of brand loyalty, and retailers who stock brands which are most desired by consumers will inevitably be able to attract more consumers back as loyal repeat customers, and generally create a positive name for his store. For this reason, our company has spend a tremendous amount of time, energy, and financial resources creating strong brands. It has been said that manufacturers often become “brand machines”, focusing their entire companies on the task of brand building and brand reinforcement. This involves a great deal more than routine advertising. In order to maximize the impact of creating and maintaining a powerful brand, it is necessary for a manufacturer to fully understand his audience and target market. The extensive branding and customer loyalty generated by manufacturers is tremendously beneficial to retailers, who are able to easily discern which manufacturers have been successful in their branding efforts. It can therefore be noted that manufacturers and distributors of strong brands present a very strong value proposition to retailers, who can confidently stock these brands, knowing that they will get a strong return on their investment in providing shelf space for these specific brands. The relationships between retailers and manufacturers and distributors are often fortified beyond simple supply relationships. It is my goal to enter into “strategic partnerships” with retailers, so that we may work together to reduce product latency and out of stock situations, and reinforce the pricing and predictability expectations of each party. With these strategic relationships in place, we are better positioned to support each other’s efforts to maximize mindspace of our brands by introducing the correct product mix to the retailers shelf space. We will often work with retailers to determine exactly what that correct product mix is. We will allocate staffing and financial resources to examine the retailers specific situation, communicate with the retailers customers through direct in store activity, and improve the look and accessibility of our brands by optimizing shelving and product presentation areas within stores (often through allowances provided to the retailer). The cooperative efforts of the retailers and our company serve to provide maximum exposure to our brands, increased sales revenues for the retailer through improved product sales, and a superior shopping experience for the consumer, who is exposed to increased product selection, improved product availability (less out-of –stock situations), and more convenient product placement within the store. We will make further attempts to increase the mindshare of our brands by introducing alternative and complimentary products within the same product range. Included in these alternative products are the “me-too” products, which are simply intended to mimic products introduced by competitors. These products are designed to appeal to consumers who’s individual tastes and preferences inevitably vary. They have another more beneficial effect for manufacturers, who use these products to command greater mindspace and fill larger quantities of shelfspace. Our company would provide many products which would fall into these categories, such as whitening toothpastes, gel toothpastes, striped toothpastes, and toothpastes for sensitive teeth. We will also address the needs of consumers by providing complimentary products, such as dental floss, toothbrushes, and mouthwash. These products will be combined in tasteful displays provided to the retailer by our company, which are intended to promote the concept of “total dental care and hygiene station”. Products will be placed within these displays in a manner which combine the essential or staple products such as toothpaste and dental floss, with the impulse products, such as mouthwash, and gum massagers. The combined effect of these measures is that the retailer will have a tremendously attractive shelfspace allocation which provides the consumer with the opportunity to make several related purchases from the same product category. The cost to the retailer is minimized, and the revenue potential increased through packaged marketing. Through a combination of modern marketing, proper space management, and focused resources on gaining mindshare, our company has presented the retailer with a very compelling value proposition, which is in fact a win-win situation for all involved. The retailer will benefit from his perceived affinity with our quality brand, and his customers will remain loyal and shop at his store. The increasing popularity of our products through positive brand reinforcement and increased visibility will provide our company with the “power brand” status that we need in order to maintain our strategic relationships with retailers. Consumers benefit as their needs are met by the increased availability of our full range of products. It is the combination of modern marketing and proper space management that allows this type of situation to occur, creating value at all levels of the supply chain and ensuring that both our company and our strategic partners are maximizing their profit potential. Bibliography: Word Count: 1280
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