How to get your products listed in large retail chains

If you have just launched your brand, are considering doing so, or want to switch to supermarkets, you are probably wondering about product listing in large-scale retail. And for good reason, it is the best way for a new brand to be noticed in record time.

But, without knowing how retailers are organized and how they operate, prospecting can quickly turn sour. Furthermore, buyers in large retail stores are seasoned in negotiation techniques and often benefit from a balance of power in their favor.

The good news? Sidely is here! And today, we are going to look at the techniques that work so that your products can be found on the shelves of major retail chains.

Product listing in large-scale retail: a reminder of the benefits for brands

Although you might be tempted to believe that e-commerce is the most direct path to reach your customers, or that you want to avoid sharing your margins with distributors (30% on average, no less!), the fact remains that French people continue to shop in supermarkets. Indeed, it is estimated that large-scale retail accounts for 70% of food-related purchases!

And that's not all, success in large-scale retail product listing generally translates into three benefits for businesses:

1) Reach and visibility

Regardless of the distribution channel you choose, large-scale retail allows you to reach a very wide but also highly varied audience. This contributes significantly to building your brand awareness and, in case of success, maximizing sales.

2) Economies of scale

The large quantities you are required to produce to meet demand often allow for economies of scale in manufacturing, logistics, or distribution. As a result, your unit cost decreases, making higher margin rates possible.

3) Distribution management

Whether you go through centralized buying groups or independent networks, supply is simplified by delivering to distributors, who take care of the next steps: warehousing, shelving, and often promotional displays.

All of this can be mouth-watering... But, as you can imagine, getting listed in supermarkets is not that simple. It is important to understand all that is at stake. Indeed, being listed in large-scale retail requires robustness and highly rigorous management work. You need to understand and master all elements before and during the negotiation, know what you can or cannot accept in your contract, and identify the retailers that are most suited to your brand and your products.

To help you with this, here are the useful tips from Sidely.

Define a retail listing strategy

Large retail networks prove to be an essential channel for consumer goods wishing to maximize their sales opportunities. However, the main objective remains to sell YOUR products.

So, let's examine together the crucial aspects to master in order to succeed.

Learn how large-scale retail is organized

First of all, it is important to understand the difference between independent retailers and integrated retailers:

+ Independents: they have real autonomy over the choice of products they list. Intermarché, Grand Frais, Système U, and Leclerc are among these. You will therefore have to prospect them one by one to gain shelf space in their respective aisles... If your products perform well, you might later be listed at a regional or national level.

+ Integrated networks: these, on the other hand, refer to their central buying office. To hope to find your products on the shelves of Auchan, Monoprix, or Carrefour, you will therefore need to prospect the central buying offices of these major retail names.

Choosing a distribution method will also be essential to reach your targets. Brands during their launch phase can be highly sought after by certain retailers who, in exchange for listing you, demand exclusivity for your products.

Adopt a bimodal strategy: integrated and independents

For new brands looking to maximize their visibility and sales opportunities, it is advisable to target both integrated retail chains and independents. This bimodal approach allows covering a wider spectrum of the market and optimizing chances of success.

However, it is crucial to understand that these two types of retail formats function differently and therefore require tailored strategies. With integrated retailers, negotiations take place at a centralized level, which can represent a major challenge but in turn offers potential access to a wider network of sales outlets. It is essential to carefully prepare your offer and highlight the added value of your products to convince central buying teams.

On the other hand, approaching independents requires a more personalized method. The dialogue takes place directly with store managers, which can facilitate the establishment of commercial relationships and allow for a better understanding of the specific needs of each outlet.

Although this bimodal strategy can turn out to be more complex and require a more significant investment in time and resources, it opens the path to a greater diversity of opportunities and can greatly contribute to the success of your brand in large-scale retail. Just be careful to properly balance your efforts and adapt your approach according to the specificities of each retail type.

It is important to note that being listed with independent retailers will help you get listed in central buying groups, since you will be able to back up your sales pitch with concrete data.

Define your commercial and financial objectives

In exchange for the benefits of your listing in supermarkets, you will often have to deal with a gross margin of 30% applied by distributors (on average). The impact on your profitability must therefore be studied, because a selling price cannot be stretched endlessly. Thus, achieving large sales volumes is generally compensated with lower margins.

Between the pressure on your margin rate and the competition eyeing your shelf space, it is crucial to quickly prove consumers' attraction to your products. For this, we advise negotiating right from the setup of the distribution contract for a presence — even temporary — of your products at the end cap. This helps drive test consumption of your products. Sales from the regular shelf space will happen naturally if consumers appreciate your products and validate their price point.

Defining your commercial and financial objectives allows you to prepare for negotiations with different retailers.

Identify your highlights and build a storytelling that sells

To get your products listed, you will need to pitch your brand! You must be convincing and give retailers the impression that they can make profits thanks to you.

So, let's review a few angles that are worth working on!

Innovation: a selective criterion for your distributors

Novelty generally attracts major retailers. This is notably the case for Monoprix, which, to attract new entrants, will tend to demand an exclusivity contract in return. Innovation can therefore score you points! Especially since every time a product makes its way into an aisle, another is bound to make its exit...

If your product does not bring innovation in terms of taste or formulation, focus on packaging and any other element that could spark the consumer's interest and, consequently, that of the large retail buyer.

Pricing strategy: allowing the buyer to secure their margin

Another possibility: working on a more aggressive price offer. It is a matter of finding the right balance between an attractive price for distributors, which will help anticipate large sales volumes, and a price that ensures your profitability. Do not forget that your distributor wants to sell more: make sure that their margins do not cancel out your low price strategy. After all, they also want to maximize profitability per shelf meter.

The product and its market: arguments that weigh in

In case you already have a history in direct marketing of your products, try to leverage the key figures as much as possible.

Furthermore, your potential retailers will be particularly receptive to a product carried by a growing market. This logic can also apply to an upward trend in your category or product range.

The purchase frequency of your products is also an asset you can highlight, if applicable, because it contributes to a high turnover rate on the shelves. If you sell your product through e-commerce, or are already listed with other chains, prove with numbers that your product sells.

The holy grail is obviously the destination product: if your brand alone drives foot traffic into the store, bingo! If you succeeded in getting listed in your first stores, you then have the capability to prove it. If you can demonstrate that your product attracts new customers to the store — in other words, helps them gain market share in their catchment area — you will have a significant advantage.

If you are not yet listed in any retail group or store, you can demonstrate that your product can perform in a supermarket by showing that it can outperform its market. A comparison with competing products can influence the buyer: nothing beats a clear and concise table showing key figures or competitive advantages to dismantle your dear competitors! Show that with equivalent shelf share, your product will allow your distributor to increase their revenue or margin.

Communication and marketing

Show your communication plan and your media plan: your marketing efforts will drive people to the sales point, and the section manager or the buyer in central buying will be receptive to this. Also offer merchandising solutions to the stores.

Your performance on social media will also be considered, as well as your collaborations with influencers. Indeed, your distributors always hope to benefit from the communication of their partners. It is a bit like the logic of cost-transference: you buy visibility on the web, they gain customers in-store!

Corporate image

Also remember to leverage your awards, labels, and other certifications. For the buyer, all of these validations by third-party, independent organizations are arguments that could convince consumers to try your products when they do their shopping.

Likewise, adapt your products to current and future consumption trends. In the food industry, natural is highly popular! To differentiate yourself and increase your chances of being sourced, work on this concept of environmental respect in all its forms.

Vision and adaptability

Knowing how to adapt your products to increase your chances of winning customers over is also proof of your strategic sense! For example, some food brands can play on natural ingredients, which committed consumers are particularly fond of. Others will choose to adapt their packaging to a region or a seasonal event. The key word? Sense the market and show boldness!

Commercial performance

At some point, you have to show some muscle...

Do you want to prove that your products belong on the buyer's shelves? Show the results you achieve through your own channels:

-> Direct sales in e-commerce and in independent and direct stores;

-> Performance on online marketplaces;

-> Crowdfunding campaigns operated in the past.

This is also a way to show your contact that a target clientele already exists, which will favor in-store purchases. Furthermore, your past successes give you the image of a successful management team that will know how to find the keys to commercial success in the future.

Train your sales reps in sales techniques

At the heart of the product listing process lies the art of selling!

Work hard on the discovery phase: the weak point of sales reps is often their natural tendency to jump into arguments... Counter to this bad habit, the best salespeople are those who master the art of discovery. Indeed, the reasons a buyer has for sourcing your brand can be numerous, and if you want to hit the target, always start by trying to discover their specific challenges.

For example, if your product fits into an aisle that is a bit outdated, your brand can act as a driver for the entire area concerned. By identifying the buyer's objectives, your sector manager can build a tailored and impactful pitch.

Thus, your sales reps must know both consumer purchasing behaviors and the challenges faced by section managers (which is very often the retailer's policy!). Do not forget: adapting your sales pitch to your listener remains one of the best-kept secrets in sales!

Synchronize data from large-scale retail prospecting

Keep in mind: getting listed in large retail networks can take up to 6 months — and sometimes longer — with the duration depending on many criteria, such as your listing strategy, the sales force you have available for meetings, or the geographic territory you aim to cover.

Listing in retail networks can therefore turn into a real marathon. And if you consider this delay as well as the structural differences between independents and integrated networks, it is obvious that many commercial events will disrupt your strategy throughout the listing cycle.

Yet, as we saw earlier, distributors are extremely sensitive to what is happening with their competitors... Conclusion: don't hesitate to play on this sensitive spot: if you managed to enter certain stores, you can lean on these first victories to influence your next business contacts. Your store audit app then allows you to confront the buyer with data gathered at their neighbors' stores... That stings!

A word of warning, however, not to be overly aggressive in your approach: establishments have their own distribution policies. The valuable KPIs at your disposal allow you to support your arguments, not to be condescending to the buyer.

As you will have understood, using a CRM is essential in prospecting, and large-scale retail is no exception to the rule!

Prospect from a qualified and updated database

The store database represents a major asset in your retail listing strategy. For your sales reps to optimize their prospecting, start by giving them an updated distributor database. Indeed, regardless of your target's purchasing structure, the freshness of the data is crucial:

-> If you target independents, the multiplicity of contacts means that your sales force can quickly turn into a call center... With a qualified and updated contact database, your sales reps multiply their efficiency in booking meetings;

-> In integrated networks, the purchasing function is centralized around a few key contacts: ask to talk to a contact who left the company 6 years ago... You are caught off guard, and it is your company's image that suffers! Bye-bye listing...

Getting listed in supermarkets is thus a central question for many companies wishing to increase their sales. But to succeed, you must prepare.

What we have just seen together in this article:

1. 1) Know how integrated and independent supermarkets operate;

2. 2) Define your commercial goals;

3. 3) Identify your strengths and establish a sales strategy;

4. 4) Train your sales reps in the specificities of large-scale retail;

5. 5) Equip yourself with the right tools so that your strategy turns into results.

And for those who succeed in getting on supermarket shelves, the work has just begun. Indeed, being listed with buyers is good, but it is only the start of the adventure: you need to maintain the relationship with each of your stores and preserve it to be able to increase and retain your presence.