Distribution Would Require Extreme Retailer Convenience


The initial trade meetings were positive. The in-depth discussions with personnel from major supermarkets and drug chains indicated strong receptivity to the idea. They could see a need for a heavily advertised and promoted national brand of pantyhose that would be sold in supermarkets and drugstores. Retailers widely felt that a national brand would result in incremental sales for their stores by broadening the consumer market to include planned purchases as well as the impulse sales they were already getting. Most felt that it would be an increase in business that would be added to the already growing private-label sector.

However, these meetings also identified a major barrier to obtaining broad-scale distribution for Leggs in supermarkets. Most of these merchandisers felt that their existing programs of selling private-label or unbranded hosiery were very costly as a result of overhead expenses such as inventory financing, fixtures, warehousing, distribution, out-of-stocks, and in-store housekeeping. If Hanes required them to incur these same costs in selling Leggs, distribution would be very limited.

Another obstacle to successfully marketing a hosiery brand in supermarkets was service. These retailers were not looking forward to servicing a new brand on top of their own private-label or unbranded programs. One of the keys to obtaining broad-scale distribution, therefore, was to make it very easy for retailers to do business with Hanes. This indicated that what was needed was a full-service hosiery program that would require little or no risk or maintenance cost on the part of retailers, and that would therefore overcome the main obstacle to marketing branded hosiery profitably through these outlets.




Powerhouse Marketing Plans(c) 14 Outstanding Real-Life Plans and What You Can Learn from Them to Supercharge [... ]aigns
Powerhouse Marketing Plans(c) 14 Outstanding Real-Life Plans and What You Can Learn from Them to Supercharge [... ]aigns
ISBN: 735621675
EAN: N/A
Year: 2006
Pages: 172

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