Did you know there are an average of 39,000 items in grocery stores? If you are new in the market, this might sound scary. You must wonder how to squeeze in your food products with this kind of competition.
The grocery store shelves are crowded with foods and beverages. Space in grocery stores is limited. For your food product to ever make it onto the grocery store shelves, it should stand out from the competition.
You need to know what is happening in the grocery industry. What is popular in terms of flavors, packaging, and shapes of food products.
This guide outlines what it takes to get your food product onto these coveted spaces.
Why Grocery Stores?
According to Statista, the global grocery market is worth $7.6 trillion. That's a lot of money, and it's a market that's growing at an annual rate of 3.3%. The growth of this market means there are opportunities for entrepreneurs to revolutionize how we buy groceries.
The grocery industry has been revolutionized by technology in recent years. Customers can now use their mobile devices to pay for products at the register. They also use grocery apps dedicated to helping them shop.
Grocery stores are among the most popular retail locations. They are also one of the most competitive environments for brick-and-mortar businesses. Stores differentiate themselves from their competitors to make a profit for you.
The good news is that grocery stores have a huge advantage over online retailers. In-store shoppers are up to 5 times more likely to purchase items on sale than online shoppers.
Grocery stores can use this knowledge to drive foot traffic into their stores. By creating grocery store apps with coupons and special offers, your products can achieve significant sales.
The goal of every entrepreneur is to maximize profit and sales. Grocery stores make this goal realistic.
The 4Ps for Success in Selling your Food Product to Grocers
Grocers are looking for products with high-profit margins and sell in large quantities. Without this, grocers will not add your product to their inventory. How do you create an attractive food product that to grocers?
There are four P’s that you need to incorporate:
Product
You need to make sure the product is ready for production. You should have test batches already created or have spent money on an initial batch.
The batches can be used in your package design.
Your product needs to be unique and customer-oriented. Your goal should be to offer a food product that exceeds the client's expectations.
Packaging
The packaging offers the first impression of your product. If you fail in creating an impression, the chances of convincing clients to buy the product are narrow.
You need an outstanding idea for your packaging. You can use an existing package design, but you need to ensure it fits with the product.
The packaging should create a positive brand appeal. It should also be eye-catching.
Remember, food packaging has to be sensitive. Food products like vegetables and fruits go bad quickly.
Your packaging has to comply with EU food packaging laws.
The type of packaging should promote safety and prevent contaminations.
Product Design and Label
Product design is the process of defining requirements for a new product. The goal is to develop a technical solution to fulfill clients' needs.
The product needs to be designed in an easy way to use. It shouldn't be prone to breakage. The product package design needs to be durable and stand up to wear and tear.
The labeling should communicate your product's function, ingredients, and warnings. Use proper product labeling to capture customers' attention.
Product Pricing
In the highly competitive market, food product pricing matters. You need a reasonable or market pricing strategy to win clients.
Food products are basic, not luxury. Grocers prefer brands with reasonable pricing to drive sales. They need to offer an incentive for clients to buy.
Overly priced products may be rejected. However, if the food product lies under luxury sectors, highly-priced products are welcome. Luxury food products include lobsters, Kobe beef, oysters, and caviar.
Steps to Selling Your Food Products to Grocery Stores
It is not easy to get your food products on grocery store shelves. Barriers like lack of funding and competition with larger brands are a liability. This guide is a blueprint to getting your food products on grocery store shelves.
Research Your Target Grocery Market
How big is the grocery market for your target location? You can use a trade association of grocery stores in your area to estimate. Find out what percentage of this market size you need to make your product worthwhile.
Determine the average conversion rate. If you are selling food products with a high-profit margin, you can afford a lower conversion rate. If the product has a low-profit margin, you need a high conversion rate.
Know your market before investing. Market research protects from costly and non-profitable investments.
Get the Right Permits
Grocery stores have minimum bearable conditions to have your product in their store. One of the basic requirements is that you have legal approval to produce.
EU has a set of policies and laws on food. The goal is to protect human health and consumers' interests. Get all the necessary permits and comply with EU law Regulation (EC) 178/2002.
The law sets that, to place food on the market, food business you need to ensure:
- The food products are traceable
- Proper presentation of food
- Provide accurate and suitable food information
- Prompt withdrawal or recall of unsafe food placed on the market
Grocery stores will check compliance before accepting your products. Prepare the documentation and make it ready for presentation.
Find the Right Grocery Stores
As you might have guessed, there are a lot of grocery stores out there. The good news is that most of them are owned by large corporations. They follow the same business model.
Groceries compete for suppliers' attention. For your product to stand out, you need to give it a unique selling proposition (USP).
Poach your target stores. You might need to go outside your city or county if there are not many grocery stores. Depending on your production scale, you know which and how many stores to target.
Make contact with your target stores. It's not surprising if you cannot secure a meeting as soon as desired. Note, some stores have large supply chains, which can delay the process.
Once you get an appointment with the manager, mark the time. Prepare for poaching with unique propositions.
Establish a Unique Selling Proposition
USP sets you apart from competitors. It makes your product more appealing to customers. For example, if you are selling vegetables, your USP could sell organic vegetables.
It is not enough to claim that your product is the best in the market. You need to back it up with facts and figures.
A unique USP also implies a great product with outstanding functionality.
Negotiate Terms of Supply and Get Into Your Contract
Remember, once your presentation is successful, the next step is getting into a contract. Before the contract, negotiate the terms of food product supply. Negotiate on quantities, quality, pricing, and other essential details.
Your contract should have essential details like payment, product recalls, and positioning.
It is commendable to have your lawyer go through the contract. It protects from getting into compromising business situations. Clarify the terms of each clause to understand what kind of deal you are getting into.
Meet your legal obligations with diligence. Your goal is to maintain healthy business relationships for continuity.
Prepare for Food Product Production
You now legal deals with your target grocery stores. You have an obligation to deliver. Depending on the quantities and quality of food products agreed upon, you need to be ready for production.
Your production capacity should accommodate demand influxes. You need to be fully equipped with the right skills and equipment to deliver.
Have enough staff, storage, production space, and capital. The last thing you want is to begin making excuses for not delivering. Failure to supply as agreed or offering low-quality products can land you into trouble.
Maintain an open communication system with your grocer and clients. Your production should target to maximize customer satisfaction and sales.
Get Your Food Products on Grocery Stores Today
Grocery stores are potential outlets to reach a broad customer base. As an entrepreneur, your goal is to make your food products known to your target clients.
Although food stores sound promising, securing a space can be a nightmare. It doesn't have to be. With the proper planning, you can secure several grocers in your target market.
Use proper food labels, brand packaging, product design, and pricing to stand out. In a crowded market, you need to be unique. Try the above tips to get your food products on grocery store shelves.
Contact us for guidance or assistance on the packaging, labeling, and product optimization. We have years of experience in the fields of graphics and production printing.
