Topic > Space Management - 1036

Space Management In the highly competitive world of fast moving consumer goods (FMCG), the battle for proper consumer exposure has never been more intense. Fast-moving consumer goods, or FMGC as they are commonly known, are products that form the basic elements of everyday life, such as food, toiletries, cleaning products and drinks. For the purposes of this assignment I will take on the role of marketing manager of a toothpaste manufacturing company. The toothpaste market focuses on the entire range of consumers and includes both the low and high end of the FMCG market. The winners in the race to sell greater quantities of consumer goods will inevitably be the producers and distributors who manage to guarantee the greatest quantity and highest quality on the shelves of the points of sale, thus gaining the greatest mental space in the consumer's mind. Since the shelf space at a given store is entirely owned by the retailer, it is the manufacturer or distributor who is able to present the most compelling value proposition to the retailer who will ultimately gain control of the retailer's shelf space. Consequently, for our toothpaste manufacturer to be successful in the battle for control of the consumer's mental space, we must first be successful in its battle with the retailer to gain sufficient visibility into shelf space. From the retailer's perspective, the equation is simple. Shelf space is a resource and must be used properly to achieve maximum returns. This is known as space management, and while it seems like a simple concept, it is ultimately the yardstick by which the retailer's success will be measured. The retailer must carefully take… half the paper… the company has presented the retailer with a very compelling value proposition, which is actually a win-win situation for everyone involved. The retailer will benefit from their perceived affinity with our quality brand and their customers will remain loyal and shop in their store. The growing popularity of our products through positive brand reinforcement and increased visibility will provide our company with the “power brand” status we need to maintain our strategic relationships with retailers. Consumers benefit from having their needs met by the increased availability of our full range of products. It is the combination of modern marketing and proper space management that enables this type of situation, creating value at all levels of the supply chain and ensuring that both our company and our strategic partners maximize their profit potential.