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SALES & MARKETING FROM PAGE 58 PLAY MR is an expert in the product development space, focused on using shopper insight and other sophisticated research to create actionable outcomes for brands. Retail World spoke to PLAY MR CEO Troy Kohut to understand more about the process of bringing product to market. “We work with the big FMCG companies and other large retailers as well,” he said. “We look at new product development, innovation, and then the sales and marketing side too. “We’re helping our clients understand what consumers want, why they want it, how they use it, what they’re looking for and details like that. It’s very important to know what the real motivations behind those purchase decisions may be, so our lens is very much consumer focused, trying to give our clients an understanding of what the grocery shopper is going to want to buy. “We’re always aware of the various trends and other leading indicators, but our process is more focused than that. We get right out there in the field, doing the data collection and analysis by talking directly to consumers.” Whether it’s a large international company wanting tactical support to launch a newly developed product onto the market, or a local manufacturer seeking customer insight to feed into new product development, PLAY is able to deliver what its clients need. “We aim to be an extension of the client’s team, offering an agile, one- stop solution that’s all about connecting them more closely to their customers,” Mr Kohut said. “That can involve shopper research, running focus groups or even tracking shopper eye movement at one of our purpose-built research facilities. On the product side of things, we provide innovation, package and product testing, brand development and segmentation strategies. “For example, this week we’re sending out three different types of bleach as part of a project where consumers will use it at home in exactly the way they normally use bleach. We’ll gather the feedback, turn it into meaningful insights and use them to drive the next stage of the product’s development.” Be attractive Whether you’re a supermarket, a 60 RETAIL WORLD SEP, 2020 supplier, or a manufacturer, the key to success is the same: the products you offer must sell. No supermarket will flourish without healthy stock turn, sufficient choice and enough variety to keep customers coming back. That’s why, all across Australia at about 6.30am on Wednesdays and Saturdays, people queue outside ALDI supermarkets, intent on grabbing a weekly special buy. ALDI’s special buys are a core part of its business strategy because introducing new products works well with its market penetration strategy of low prices, supported by strong marketing. Even though many of the special buy categories appear only once or twice each year, ALDI ships and shelves a completely new range of products twice a week. Be it camping equipment, kitchenware or car accessories, the retailer makes sure it’s available, because it sells. Why? Because ALDI knows what people want, and has a sophisticated supply chain that ensures those products aren’t easily available anywhere else. I don’t tend to divert from my everyday journeys to look at bays of baked beans or shelves of spices in my local Coles, but I do sometimes swing into ALDI when I’m passing, simply to see what remains of the week’s special buys. Of course, that leads to browsing among the cheese, the steaks and the mushrooms – and we all know steak needs a bottle of wine... On one occasion, I went in for some truffle cheese, and came out with two hammocks, a bench saw and a trolley jack, and I was thrilled. That’s exactly how it’s meant to work. Opportunity knocks While few smaller supermarkets can execute a product development strategy on the scale of ALDI’s special buys, the principle of introducing and promoting new products can be equally effective when applied to a single category or, depending on the size of the store, an individual range. What’s more, Australia’s diverse and growing multicultural population presents an almost irresistible opportunity with the authentic ethnic food category. The 2016 Australian census showed net migration has accounted for more than 50 per cent of the nation’s population growth since 2006, with 28 per cent of Australians born overseas. According to Nielsen, “in the next five years, the spend of ethnic Australians will grow at a faster rate than \[that of\] their Australia-born counterparts, accounting for over $4.4 billion in incremental revenue. The ethnic Australian shopper will contribute 28 per cent of the total FMCG retail channel”. With data like this, every supermarket in Australia has a genuine opportunity to introduce an ethnic or international range of foods tailored to its local population. But how is this done? Those looking to introduce an ethnic range should always partner with companies focused on that space, such as British Provender, an Australian company representing UK manufacturers and distributing authentic British food brands throughout Australia. Operations Manager Dan Helm says Australia has two versions of the international category. “On the one hand is the mainstream international category, comprised of various Mexican meal kits, Indian chutneys and the Asian cook-in sauces typically found in the big supermarkets and considered synonymous with the Mexican, Indian or Asian option,” he said. “The category runs at low margins, is on and off promotion, but isn’t the ethnic international aisle. Instead, it caters for the Australian customer who wants to buy loosely branded products representing food from different countries. “The other international food category is the authentic, ethnic international (EI) offering found in dedicated local stores, small supermarkets and the international aisle of the large supermarkets. “It’s serviced by smaller, specialised wholesalers supplying products to a group identified from among a supermarket’s local population.” Mr Helm says the category offers high margins and can build a loyal customer base, but retailers need to be deliberate about choosing the right supplier. “You need to partner with an experienced EI supplier you can really learn to trust,” he said. Set your sights on a range Many of those in smaller local supermarkets are familiar with their local demographics, but to set up a range of EI products effectively needs more than a wet finger in the wind.