Page 46 - RetailWorld-May2021-Tobacco-Updated

SALES & MARKETING STACKING THE DECK Attracting passing customers is as important as it has ever been, and today, merchandisers play a key role in the process. BWy Peter Howard. hat do those mysterious yet vital cogs in the retail machine, known as merchandisers, do? How can contracted marketing organisations support retailers as they emerge from a pandemic that has brought significant change to the retail landscape? It’s a small army To understand the opportunities and benefits of outsourced sales and marketing, Retail World spoke with Association of Sales and Merchandising Companies Australasia (ASMCA) Chair Keith Quigg, along with the Managing Directors of two of Australia’s largest sales and marketing organisations. “If we look back to the early stages of the pandemic, when significant panic buying and many other problems in supply arose, particularly in the grocery industry, we saw the role of merchandisers become part of the essential services to the retail industry,” he said. “There was quite a bit of communication between the likes of the Prime Minister’s office, state Premiers and others to make sure there was recognition of the services required by the retailers, from both their suppliers and within their own realms, and to make sure there was plenty of people available. “We get an idea of the scale of the industry when we see Woolworths instantly employ 10,000 people released by Qantas and others in the airline industry, just to make sure there was manpower available. “There are currently anywhere between 50,000 and 100,000 merchandisers out there helping to keep retail stores as active as they possibly can be. It’s difficult to be precise, but at the moment I’d say service providers are probably employing as much as 50 per cent of all those people.” “There are currently anywhere between 50,000 and 100,000 merchandisers out there helping to keep retail stores as active as they possibly can be.” Looking ahead According to Strikeforce Managing Director Matt Lloyd, the success grocery retailers experienced during 2020 means expectations for 2021 have been high. Meeting those expectations is challenging for retailers, so partnering with outsourced sales and marketing companies can bring the increased flexibility and scalability those retailers are likely to need. “As we go through to the end of most people’s financial year, a lot of our clients are worried about the cycling of the growth they enjoyed in 2020,” he said. “Whether it be shareholders, the board or the CEO, the fact that you can explain the growth of last year and say, ‘well we were 20 per cent up because of panic buying’, is ignored and, unfortunately, the stakeholders still want 20 per cent growth-plus next year. “Consequently, we’ve had a lot of inquiries about how to step-change growth off the back of growth last year. “In addition to cycling the growth of last year, the lack of supply meant consumers became less brand loyal and introduced new brands into their repertoire, whether it be own label or whether it be brands that they wouldn’t normally pick up. “So, with people now familiar with competitive brands, our clients are saying, ‘I need to get them to brand- 44 RETAIL WORLD MAY, 2021