It's amazing how many "novel" innovations & discoveries in modern food retailing have mirrored past discoveries from ages past. Beyond one's own industry It is also fruitful to extract ideas and merchandising techniques from other retail segments such fashion, general merchandise, or even boutique goods. Recently I was quite captivated by two books and a PBS documentary all chronicling the stories three historic successful merchants. What intrigued most was 3 relevant lessons for today's food retailers from as far back as the 1800s! Let's take a look below.
Cereal Tycoon by Joe Musser
The next time you enjoy a bowl of oatmeal consider the food industry innvations of Henry Pasons Crowell founder of the famous Quaker Oats Company. Despite tremendous competitive hurdles & heath challenges Henry's exceptional faith in God lead the way for a successful company who's philanthropic efforts benefitted many. Henry created and promoted one of the first successfully branded food products. This was a bold effort, and as author Joe Musser states, "No one knew what might happen if someone tried to sell a legitimate product with honest claims." Further, Crowell pushed hard to obtain an advertising budget and soon Muss explains, "the Quaker name and trademark image were universally visible. They were painted on barns, box cars, wagons and even street cars. Metal signs were nailed to fence posts, telegraph poles, grocery screen doors, and windows. The displays ads were in newspapers, magazines, and on posters posted everywhere." Further Quaker Oats banked on the grab & go food solution equivilent of the day by formatting products into convenience sized individual boxes. Rather than remain a generic commodity dispensed from a pest-prone unsanitary barrel on the sales floor of the local general store Quaker Oats created a signature branded, colorfully labeled box for easy transport, use, and marketing.
Take Away Grab & Go Food Lesson 1 - Reformat Products for Guest's Needs & Easier Purchasing : Review your product mix for opportunities to reformat your fresh offerings into a more easy to buy customer centric format. Consider packaging, labeling, and customer education by use of compelling labeling and signage. Review opportunities for private labeling your convenience foods with a trademarked brand. While this may seem logical many retailers continue to offer items in irrelevant sizes for quick or single serve consumption. Other retailers have entire categories (bakery, fresh produce, sweets) which are not packaged in manners to purchase without the assistance of an attendant or greater effort on the customers behalf. While uncooked oats are not a grab & go food, Crowell's understanding of his customer's needs and translating his product, message, and packaging to suit can clearly apply to modern food retailing.
Take Away Grab & Go Food Lesson 1 - Reformat Products for Guest's Needs & Easier Purchasing : Review your product mix for opportunities to reformat your fresh offerings into a more easy to buy customer centric format. Consider packaging, labeling, and customer education by use of compelling labeling and signage. Review opportunities for private labeling your convenience foods with a trademarked brand. While this may seem logical many retailers continue to offer items in irrelevant sizes for quick or single serve consumption. Other retailers have entire categories (bakery, fresh produce, sweets) which are not packaged in manners to purchase without the assistance of an attendant or greater effort on the customers behalf. While uncooked oats are not a grab & go food, Crowell's understanding of his customer's needs and translating his product, message, and packaging to suit can clearly apply to modern food retailing.
Minding the Store by Stanley Marcus
Lessons from fashion retailer Stanley Marcus offer another reminder to focus on quality when building a product mix while simultaneously offering varied price points to appeal to a wide variety guest's needs. Stanley states, "there is nothing wrong with buying (store merchandise buyers) a gift of good qualilty and taste which retails for $5. She (or he) will attract new customers and delight established ones by offering something new and exciting at a price lower than usual; but if one item is successful it doesn't follow that she should add twenty, for then she simply lowers the average sale of her department". For food markets, since food is so highly impulsively purchased, consider a strong menu mix of grab & go prepared foods, but also consider small impulsive items to be purchased as incremental add-ons to build average guest checks / shopping basket size. In practicality, even the register counter "change maker" bite size chocolate or caramel can please a customer and build profitability. Ensure whatever price point you're buying merchandise for that each item is aligned with the brand and cohesive within your custom curated product mix. Secondly, Stanley Marcus noted convenience and solving customers problems paid dividend and builds loyal customers. A specific example was his industry leadership in "ready-to-wear" clothing. Prior to this philosophy retailers ordered clothing for their customers based upon their measurements. Clearly, this process would take some undesired time waiting for the garment's manufacturing and shipment to the store. Imagine if there were a problem! Likewise, the food industry's efforts to make more foods readily available for selection and purchase, NOW, has generated incremental opportunities obtaining sales formerly lost. Making high quality foods available for easy and quick customer selection in what we call RTE or ready-to-eat solves basic human needs in today's fast paced mobile world.
Take Away Grab & Go Food Lesson 2: Build Distinctive Signature Product Mix Offerings: Finally, offering a world-class high-quality product offering requires distinct food products, research and often a customized distribution system to become successful. Take for example the story of Wil Wright's Ice Cream Parlor on the Sunset Strip. This incredible "extraordinary" ice cream was sampled for Neiman & Marcus's signature Zodiac restaurant. The initial sample shipment cost over $20 per gallon but passed the flavor and quality test! The two businesses worked together to develop a specialized method of train and refrigerated truck transport to offer the best which ended in a long term partnership and delighted customers who much appreciated a served single bowl or the ability to purchase by the gallon when they specially entertained their friends.
Take Away Grab & Go Food Lesson 2: Build Distinctive Signature Product Mix Offerings: Finally, offering a world-class high-quality product offering requires distinct food products, research and often a customized distribution system to become successful. Take for example the story of Wil Wright's Ice Cream Parlor on the Sunset Strip. This incredible "extraordinary" ice cream was sampled for Neiman & Marcus's signature Zodiac restaurant. The initial sample shipment cost over $20 per gallon but passed the flavor and quality test! The two businesses worked together to develop a specialized method of train and refrigerated truck transport to offer the best which ended in a long term partnership and delighted customers who much appreciated a served single bowl or the ability to purchase by the gallon when they specially entertained their friends.
Secrets of Selfridges - PBS Video
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When considering innovation in modern retailing, Harry Selfridge comes to mind. Challenging the norms of merchandising, Harry became successful in Chicago working for Marshall Fields & Company. Wikipedia states either Seflridge or Marshall Field were credited with the famous saying, "The customer is always right." His knack or "craziness" was well rewarded when he left to set up shop in what his contemporaries thought was against all odds. Selfridge relocated to London, selected a "unlikely" location of enormous size, and filled the store with elaborate displays, merchandise, complimentary entertainment, and a seasons sales team. The shop was an instant success. The proximity to merchandise and ability to browse and enjoy one's time within the lovely environment contributed to what we would now call "dwell time." As a result, his excited new & loyal guests alike tended to stay longer enjoying his well selected merchandise and desirable fun filled environment and in turn likely spent more impulsively and regularly growing Selfridge's success.
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Take Away Grab & Go Food Retailing Lesson 3 - Making Merchandise More Accessible: Harry Selfridge's lavish merchandising brought merchandise out from behind traditional service counters allowing the guests to interact with the product. Touching, feeling, and personally exploring his offerings helped to encourage sales. This was unconventional in a time when customers traditionally requested items from behind counters and display cases from a "functional" store attendant. His methods found great success as products became more accessible. Consider how this relates to modern food retailing. In today's day and age service can take different forms. Often traditional food retailers or hospitality groups may subscribe to positive guest interaction as a primary act of service. As a result many food markets in these establishments feature fixturing in the form of refrigerated and ambient "behind glass" food display cases. I will challenge retailers to reconsider the effects of this format and presentation of food merchandising and take bold new steps like Harry Selfridge did in making products more easily and readily purchasable. This may require new packaging and finding new areas to build displays. Allow guests to make their own selections, review your food offerings, and interact with your labeling and packaging at their own pace. As guests lazily stroll or hurridly race through your market consider methods to value their time through your product display methods and product formatting. Then like Selfridge, teach your sales team to be ambassadors and subtle sellers of your great products through their knowledge, sampling, and personal experience with the items themselves.
Many lessons from these past successful innovators can help us take bold moves in today's food markets as we strive to build creative and unique food programs aimed to meet our customers grab & go food needs. Best of luck advancing your retail food marketplace!
Many lessons from these past successful innovators can help us take bold moves in today's food markets as we strive to build creative and unique food programs aimed to meet our customers grab & go food needs. Best of luck advancing your retail food marketplace!