a little bit more attention in circulars or
store displays,” he says.
Retail Challenges
Khubani discusses problems with
knockoffs where mom-and-pop retailers
will get shipments of fake Ped Eggs. Smith
notes the growing number of retailers
now with private brands. “Retailers are
competing more with the manufacturers
than before. They’re still creating shelf
space, but they’re personally competing
with other manufacturers,” he says. However, there can be simple problems related
to supply and demand that need special
attention.
“Inventory positioning is important.
As these items hit and take off, once
they’re placed at retail and they’re also
flying off the shelves on the direct-to-
consumer model, I think the retailers
get very concerned if orders aren’t being
filled in a timely manner,” Doll says. “It’s
a good problem to have when demand
outweighs supply, but it’s also risky for the
manufacturer. There can be some penal-
ties from the retailers from not selling at
retail.”
Furthermore, she explained that when
it’s simultaneously being marketed on-air
and being sold in retail, when there’s a
pinch, direct-to-consumer orders are often
filled first. “It’s a tough model because
when things are hot you have orders com-
ing in from all avenues,” says Doll.
Smith contends that DR marketers
must understand the business model of
the retail channel they’re going into.
“You’re used to spending a certain
amount of money on media or search,
but understand that with all the channel
margins, slotting allowances and back-end programs, you have to chalk it up
that those are probably going to offset
each other. Look at retail probably as incremental growth for you; spreading your
bets a little bit more on the table and
diversifying a bit,” says Smith.
Buchbinder finds that upfront talks
with media buyers continuing on a con-
sistent basis can help quell issues before
they exist. “Your media buyer understands
how to build a more holistic approach to
this item or brand as you’ve seen retailers
go from hodgepodge to no space, to going
to larger set ups and better locations,” he
says. “The whole media strategy becomes
more specific. In the simplest forms, it’s
understanding the value of cutting down
from a 120-second spot to a 60-second.
It’s understanding the role that retail
plays in the overall lifecycle of the brand
and aligning your retail strategy appropri-
ately, and that may be making changes in
how you approach your media.”
Doll also attests to media’s impor-
tance. “We definitely see a link between
media buys and sales off our shelves. As
Seen on TV products have a long-lasting
shelf life because off all those media im-
