Rules for Winning in Discounters

Rule #1:  Sell the stuff that sells.

The sandwich range in Jack’s is a good example of this. 

They offer the core flavours (ham, cheese, prawn, tuna, egg and chicken).  The ones that 95% of shoppers want.

The Discounter model is based on a strong, tight range.

Shoppers are fine with this as long as the range covers their core needs.

So, focus on the stuff that sells.

Rule #2:  Use mixed cases.

Mars confectionery is a good example of this.

They use a mixed case with a different number of packs by SKU to allow for different rotation rates.  Maltesers sell quicker than Minstrels.

The Discounter model prioritises efficiency – maximum product availability with minimal replenishment.

This works for shoppers who can easily grab the product they want.

So, use mixed cases.  It’s easy for the store.  It’s easy for shoppers.

Rule #3:  Keep promotions simple.

Fab ice lollies are a good example of this.

They are using a simple on pack promotional mechanic (100% extra free).  It requires no additional communication or space.

It works for the Discounter model – it is easy to implement.

It works for shoppers – they can buy one pack and get the promotion.

So, keep promotions simple.  For the shopper and for the store.

Rule #4: Ensure SRP has great visual standout

Flora is a good example of this. 

The SRP reinforces the key colour cues of the brand.  Green for the standard SKU.  Blue for the light version.

Discounters have limited signage and merchandising.  Brands are reliant on their primary and secondary packaging to stand out.

This allows shoppers to use these visual cues to find what they are looking for.

So, ensure SRP has great visual stand out. 

So, that’s a few rules for Winning with Discounters. We work on a lot of Channel Strategies, and our thinking covers how to win across channels as well as within channels. If you’d like to chat to us about any of it, feel free to call us…

© 2020 by Insight Traction