Seeking Thoughts on Field Rep Conference

Since NARMS inception, the companies who compose the at-retail merchandising and marketing industry have converged annually for the NARMS Spring Conference. But there has never been an event specifically for the field service reps. The Mystery Shopping Industry has for years held an event designed directly for their shoppers. There is a new stream of thought that a similar event designed and directed toward merchandisers, demonstrators, event marketers and installers would be mutually beneficial to our field personnel and service companies alike.

Right now, there is a survey being circulated to better understand NARMS member interest in a potential event. We ask that you and your company give us your thoughts and input on the idea. Please complete this survey as promptly as possible so that we can proceed with planning and promoting an event.

The event would likely be held in the Tampa area in conjunction with the NARMS 2010 Conference. The major goals of the conference would include the development of more professional and responsive reps, as well as expanding the labor base while exposing participants to NARMSCertifyU and NARMS Individual Membership.

The questions on the survey ask if your company would participate, would help to develop content, would be a sponsor and would attend the event. Other questions focus on the format of the event.

The leadership of NARMS believes the time has come to reach out as an industry to the arms, legs, eyes and ears in the marketplace. An event of this nature and scope is only possible with your input and participation. Please take a few minutes of your valuable time to give us your thoughts.

Getting on the List

Due to a rediscovered consumer frugality, an increasing number of purchase decisions are being made in the home. The shopping list is again making an appearance in retail outlets around the world. Getting on the list and staying on the list appear to be a key factor of success in today’s new retail reality.

How consumers plan for and execute CPG shopping trips is the focus of the October issue of IRI Times and Trends, “Zero-Moment of Truth: Redefining the Consumer Decision-Making Process.” The report reveals some sharply changing shopper tactics. For instance, in the latter part of 2007, 60 percent of shoppers were making decisions at home and 40 percent in the store. Fast forward to July of 2009 when 83 percent said they made their purchase decisions at home. A 23 percent increase. This is where the shopping list makes its entrance.

IRI research shows that 64 percent of shoppers are now making a shopping list prior to visiting the store. Many of these lists are created through looking at coupons and flyers. This finding could represent a great opportunity for at-retail merchandising and marketing companies. Consumers who put an item, supported by a cents-off coupon or a special deal, on the list are going to expect to find the product easily and are going to expect it to be in-stock. Failure to do so could quickly turn the shopper to put a new brand or different store on their list.

Savvy CPG retailers and manufactures can look to NARMS members to carry out a variety of at-retail marketing support activities to match the changing trends. They can also look to our in-store experts to help measure retail marketing effectiveness at the point of sale. Brand Marketers are now changing their marketing strategies and tactics to match this new consumer behavior. They will be happy to know that the members of NARMS are perfectly positioned to support these efforts.

NARMScertifyU to Debut in 2010

Last week, NARMS International announced further developments surrounding the NARMScertifyU program that was introduced shortly after the 2009 Spring Conference. This newly launched program will benefit all NARMS member companies through workforce training that builds on industry standards to improve the quality of workforce at the retailing level. Listed among the new developments are a formal agreement with bds marketing, inc., the timing of the initial program launch and the program price and starting parameters.

According to the agreement, bds marketing will be the association’s partner in the design, development, management and promotion the on-line learning system. bds, a California-based retail marketing agency, is an active NARMS member.

The NARMScertifyU launch date is slated for February 2010. The program will continue to be developed over the coming months as a benefit to both member companies and individuals seeking work in the at-retail service industry. Addressing a recognized on-going industry challenge, the learning program is destined to become a strong component in the overall NARMS-U educational program.

The initial offering will be made up of eight on-line training modules priced at $15 per module. Merchandisers and companies can access the modules at www.NARMSCertifyU.com. The site is based on a Learning Management System, offering on-line learning and testing using Adult Learning Principles, with administrative performance management and measurement features. Certificates of achievement are awarded for each area of study completed. Social media is integrated into the users experience with discussion forums, bulletin boards and chats to create an extended learning experience and community.

NARMS International is proud to be a leader in establishing this official learning center for member companies and their field representatives. More information about NARMScertifyU is available from Larry Dorr (office 949.472.6700 x1216 or cell phone 949.303.8492).

Promotion Huge in CPG Sales

It is no surprise that low prices and promotions have become important to consumers as they look to stretch their shopping dollars. And even though economists are now saying that the recession is over, most retail experts believe that consumer buying habits have been changed forever. What is surprising is the extent that promotion plays in typical supermarket sales.

A study by The Nielsen Company has shed some light on the direct effect of sales promotion. The study says that almost 48 percent of grocery purchases are sold on promotion. That’s up two percentage point from last year. And it’s not just grocery stores. The study says that over 40 percent of Drug store sales are linked to promotions, displays and features.

So what drives the success of these promotions? Nielsen says it is a matter of setting goals for each promotion and then measuring the results to determine optimal promotion effectiveness. Finding the right mix of product, price and display support are the keys to success.

For the members of NARMS, these results are welcome news. Our membership is made up of at-retail merchandising and marketing support companies who are out in retail aisles everyday making sure product is on the shelf, promotional end-caps are built and point-of-purchase material is in place. The best planned in-store promotions will not work without flawless execution at the shelf. Additionally, our companies can monitor and measure the results of at-retail activities by using constant presence and advanced data collection and reporting capabilities to give their clients a portal into each retail location.

The importance of at-retail marketing and promotion is at an all time high. Now is the time for CPG manufacturers and retailers to partner with NARMS members as part of an integrated promotional solution.

IRI Shares More Intel on Private Label

Last month, our friends at IRI focused on the current effect of the rise of private label in their Times & Trends publication. IRI expands its analysis of private label this month in, “Times & Trends Special Edition: U.S. & Europe Private Label 2009.” The report offers some valuable strategic advice to CPG manufacturers and retailers as they attempt to get a grip on the long term effect on what IRI calls, “crisis shopping strategies.” As always, it’s helpful to look at these reports for trends that effect at-retail merchandising and marketing services companies downstream.

IRI suggests that manufacturers explore value tiered product lines to minimize the pricing gap with private label items. Such a strategy, if practiced on a large scale, could produce enumerable new-item cut-in work and category reset opportunities. These launches will be bold and aggressive moves so manufacturers will want to support them with at-retail promotion. Speed-to-shelf and store level promotion compliance will be at a premium and so will the demand for our services.

Another suggestion from IRI is to leverage targeted marketing campaigns, including in-store efforts, across categories with highest private label threat. This report shares some data that identifies some of those categories. Brands within “private label susceptible” categories become a call list for our sales efforts as they need help in the battle for brand equity.

The third suggestion that leaps out of this report is, “Measure and monitor actual versus planned impact of private label-related initiatives.” The ability of our members to act as eyes and ears as well as arms and legs has never been better. Now is the time to demonstrate store level data gathering techniques, technology and reporting that will help the brand marketer measure and thus manage their initiatives.

In-Store Marketing Expo: Come Curious, Leave Inspired

The In-Store Marketing Institute will be holding the In-Store Marketing Expo at the Navy Pier in Chicago , October 7-8. For NARMS members, this event brings two value added bonuses. The first is that the seminar topics are highly relevant to members of the at-retail merchandising and marketing community. The second is that the In-Store Marketing Institute is offering Institute member rates to NARMS members for this special event.

The future of retail is changing fast. Dollars are being reallocated from traditional media to shopper marketing. While ad spending is expected to decline, in-store is expected to keep growing. Last year, companies spent almost $21 billion on in-store marketing. It’s becoming clear that retail is gaining ground as not just a marketplace, but as a medium.

This is creating new challenges at-retail. The seminar topics available at the In-Store Marketing Expo will directly address some of these challenges and opportunities. The seminars and keynote addresses will be conducted by speakers from Wal-Mart, Kimberly-Clark, Wrigley, ConAgra, Walgreen’s, Supervalu and Coca-Cola. Listed among the seminars are: “In-Store Sampling as a Targeted Measured Media”, “In-Store Events: Measuring Impact and ROI”, “Driving Purchase Through Impactful Sampling Experiences” (presented by Wal-Mart), and “Leveraging Shopper Marketing to Support In-Store Tactics”.

For NARMS members, getting the Institute member rate could mean gaining all this tremendous insight at a savings over 25% for a 4-pack of seminars. To receive the discount, type NARMS into the Company2 field on the registration form.

This is a great opportunity to come and share some of the key information that brand marketers and retailers will be using to shape a future that includes more emphasis at –retail. As the Institute’s promotional material says, “Come curious. Leave inspired.”

Takin’ it to the Store

An item that appeared in the Monday edition of NARMS Newsfeed couldn’t help but catch my attention. Directional shifts from a CPG giant like Procter & Gamble Co. tend to do that. To quote the Advertising Age article, “If it doesn’t work at the store, it’s no longer a good marketing idea.” P&G is busy driving home this concept known as “store back” with all its marketing agencies. And P&G is putting its money where its mouth is. Last year, the company spent $3.5 billion on trade promotion and shopper marketing compared to $3.2 million in media spending.

The article points out that this mind set could give shopper marketing types a seat at the table when it comes to the development of creative. It is clear, from a P&G perspective that any marketing idea has to have the execution aspects in mind upon conception. For the first half of the year, P&G execs have been spreading the message to their agency community.

For the members of NARMS, leaders in at-retail merchandising and marketing services, this mind set comes as welcome news. We often find ourselves having to execute a program at shelf level with minimal time to prepare, and without knowledge of the bigger picture. While we have evolved and adapted to the point where we do this quite well, we have so much more to offer brand marketers.

In most cases, when we have the opportunity to consult with companies a little further up stream, we are able to help them fully formulate the idea from conception to execution. Look at any NARMS member deck of case studies and you will see a pattern of early involvement in the programs that our members like to showcase.

Obviously, at-retail is an important aspect of shopper marketing. As leaders, we must be ready to take on a more consultative role in the process while maintaining a level of excellent execution. It’s what we’ve been seeking for years. That time might be upon us.

What Does the Rise Of Private Label Mean to Us?

There is no doubt that private label is one of the big winners emerging from the recession. Even as the economy improves, it appears a number of factors have made store brands a lasting force with which to be reckoned. The combination of consumers looking for ways to save a few dollars and the amount of improvement, investment, innovation and promotional support by retailers has raised private label to a new level. In its September Times & Trends article, “Private Label 2009 Game-Changing Economy Taking Private Label to New Heights ,” Information Resources, Inc. explores the shake out from this emerging force. The challenge to NARMS members is to determine what this means to our business and if opportunities exist on the private label side of the aisle.

The first question to ask is, “What does this mean to our existing customers?” In this report, IRI says, “Manufacturers should increase frequency of feature ad and display-based merchandising across key categories/brands with a heavy focus on affordability and unique product attributes.” This is an opportunity to sell services that support those ads by increasing speed to shelf and reducing out-of-stocks. With a, now more viable, private label replacement just a few inches away from the void, consumers will quickly make the switch and may be won over forever. The importance of display building support should be self evident as the battle for consumer loyalty rages on at the store.

The next question is, “What are the new opportunities?” Conversely, IRI says, “Retailers should continue to support private label initiatives with feature ads and display-based merchandising to raise awareness among prospects seeking low-cost in-category alternatives.” The surge by private label, especially in a few key categories, may ultimately open up the retailer more as a direct client of at-retail merchandising and marketing support services.

If you get a chance, use the link above to download the September IRI report. It is packed full of information and analysis on this developing marketplace dynamic. And then ask yourself, “What could this mean to my business?”

Connection Sessions Bring Trading Partners to the Front

Over the course of the last 18 to 24 months, attracting more manufacturer and retailer members has been a front burner item for NARMS. The reasons for this initiative are fairly straight forward. Having a trading partner perspective is invaluable for the members of the at-retail merchandising and marketing industry. Some operate their own direct field force which makes operational networking valuable to trading partners and service companies. And finally, a strong trading partner presence makes the association more attractive to prospective service company membership and attendance at Spring Conference.

We have made several positive first steps in reaching out to the trading partner community. Our annual round table discussions at Spring Conference have been one of the most informative and entertaining sessions of the event. We have also entertained contacts at a reception at both the MSO Summer meeting in Dallas and the Board of Directors meeting in Minneapolis. Since Spring Conference is our showcase event, it makes good sense to enrich the event with increased trading partner presence, so here is what we have planned.

We are introducing a Manufacturer and Retailer Connection Session slated for Monday of the event at Saddlebrook Resort in Tampa Florida on April 17-20, 2010. On Monday morning, the Manufacturer Connection Session will feature six manufacturers. Each will be assigned a 30 minute segment in which they will make a 10 minute presentation on their unique needs and requirements from their at-retail merchandising and marketing partners. The balance of the half-hour will be used to field questions from you, the audience. This will take place from the General Session Stage and will include a facilitator so that we can move efficiently through the morning. On Monday afternoon, we will duplicate the format with a Retailer Connection Session. We are working on at least three retailers and hope to arrange a few more.

A committee is busy putting the details together and we have enlisted the help of Jerry O’Brien with the University of Wisconsin School of Business and the Kohl Center for Retail Excellence to help develop the program. If you have any contacts who might be interested in participating in this event, contact us at NARMS HQ. As always, we are interested in your thoughts and ideas on this and any other NARMS initiative.

NARMS U to Debut at Spring Conference

The end of summer finds Spring Conference planning in high gear. The 2010 annual event will be held at Saddlebrook Resort in Tampa , Florida on April17-20. We are happy to report that our affiliation with the University of Wisconsin School of Business and the Kohl Center for Retail Excellence is leading to a very promising program called NARMS U. The plan is to have the NARMS U brand extend to the Webinar Series and all other Association educational endeavors.

The latest draft of the NARMS 2010 Spring Conference Itinerary includes five classes under the NARMS U header. The current vision sees registrants who complete the five classes receiving CEUs and a certificate of achievement from NARMS and UW toward an Executive Education Program. Another thought is to provide a Class Schedule for all attendees as part of the registration process and using graphics to highlight our relationship with UW as well as the NARMS U brand.

That’s just the first part of the program. The second part involves interaction with UW Kohl Center staff and students. Jerry O’Brien, head of the program at UW, is planning on bringing 12 – 16 of his students to our event. This will provide valuable experience for these future retail leaders, as well as an opportunity to interview these students for future internships and employment.

Many of you have asked us to “re-vision” Spring Conference programming in an ongoing effort to stay in a leadership role in the at-retail merchandising and marketing industry. Education has always been a top priority at NARMS and we think you will agree that the NARMS U concept provides an exciting means to stay true to our charter, but also continue to evolve with the marketplace and our member’s needs. Stay tuned for more developments as the itinerary develops. Spring Conference registration will open soon.