Porter’s 5 Forces provides an easy way to understand your retail shelf challenges is through the lens of . Porters 5 Forces clearly illustrate the impact outside threats are having having for FMCG, on the supermarket shelf.

Just look at the current state of power dynamics wielded by the Super Retailers. Add to that the big shifts in consumer buying patterns and it’s very clear that the FMCG and hardware brands face a real strategic threat.

Porters 5 Forces on the retail shelf .

Let’s face it, bargaining power with suppliers and customers alike has always been challenging. That said in today’s marketplace, the increased profile of private label brands (substitute products) along with constant margin pressure has made consistent sales revenue from the retail shelf a scarcity for even the most experienced brand manager. Throw in the ever increasing competition with the majors sourcing a wide range of products from new cottage industry entrants, (new entrants), and it’s becoming virtually impossible to build brand loyalty and the revenue that comes with it.

Porters Five Forces on the retail shelf.

Porters Five Forces can help brands understand what’s happening on the retail shelf.

Where should marketers invest?

So where should marketers invest their ever shrinking marketing budget? Should marketers invest in social media? What about investing in traditional media, PR, Google, inter web promotions?Who can say? Does anyone really know?  The fact is, no matter how much time and money one spends on promoting products, nor does it matter how much effort the sales team invests in getting your product listed with the retailers,  if your pack doesn’t achieve the cut through on-shelf and ending up on the shoppers trolley, then all that budget spent elsewhere is pretty much wasted.  So great, you’ve done a good job of driving the consumer to the store to look for your product on shelf what then…?  What do you do to ensure your product makes it into the shopping trolley? After all, with all the competing products in your category, your hard worked for marketing dollars may very well end up with your competitors product in in the consumers shopping basket.

Unless… Can Porter’s 5 Forces be applied to packaging design?

There is a proven way brand managers can restore their brand and product prominence on-shelf. They need to re-allocate marketing dollars from, wasting them on pushing the “me too” products and rather investing them into packaging design which stands-out from the crowd. You need to invest in packaging design that disrupts the category and compels the consumer to pick it up and engage.

It’s easy to stand out when you do something no one else is doing

Standing out from the crowd means that your pack is not afraid to speak its mind. Your pack is designed to avoid following others which inevitably results in monotony and conformity. You want a pack whose appearance is striking and is remembered by others for being something special and is worthy of giving a go. Have your products on-shelf been designed to stand-out and make a good impression?

To beat your competition and grab the consumer’s attention, your pack can’t just be aPACKAGING DESIGN THAT STANDS OUT FROM THE CROWD little better than its on-shelf rivals. Your pack must create an impact and then sell itself!

At Jam&Co we believe in shaking up your category and making sure your brand stands out in a meaningful and sustainable way. To make this work it is essential that the emotional heritage of your brand and product must first be unlocked.

To find out how we can unlock the emotional heritage of your brand and make it stand out on shelf

CLICK HERE to arrange a complimentary On Shelf Traction Strategy Analysis [Strategic Review]