An Offer the Trade Couldn t Refuse


An Offer the Trade Couldnt Refuse

Service was identified as the main obstacle to the successful marketing of a hosiery brand in supermarkets. Most retailers were unwilling to service a new brand of hosiery. Therefore, Hanes designed the Leggs distribution system so that there would be no risk and no investment for retailers. This eliminated the barriers identified during meetings with retailers and gave Leggs maximum exposure to consumers.

A unique system of direct store delivery that was completely controlled by the Leggs organization was developed. The inventory was totally on consignment . The display fixtures for the hosiery were provided by Leggs, and Leggs sales merchandisers serviced the display. This made it possible for Leggs to tailor the inventory to individual stores needs. The net result was pure profit for the retailers, without the costs of inventory, warehousing, display housekeeping, or out-of-stocks.

The store manager of an independent supermarket provided an interesting-description of his first encounter with the Leggs program during the time it was being introduced. He described standing in the front of his store on a sunny Tuesday morning, looking out the window into the parking lot. He noticed a new white van pull up, from which a Leggs sales merchandiser jumped out. Wearing a smart Leggs uniform, she burst into his store with a great big smile and a lot of enthusiasm . She explained to him that she had a tremendous offer to discuss with him and would like five minutes of his time.

When he said OK, the woman spread out a white scarf on the floor. It took up about two square feet of floor space. ˜˜Here is the deal, she said in an excited voice. ˜˜I would like you to give me this much space in your store. I will bring in an attractive Leggs display full of hosiery. You will soon be seeing a lot of advertising for Leggs on television. Over half of your customers will be given coupons for discounts on Leggs. I will ask you to pay me nothing. After a week or so, I will come back and refill the display. You will pay me only for what you have sold. If at any time you decide you do not like the program, I will remove the display.

The store manager was impressed. This was an easy proposition to accept.-He would be able to take on a major new brand of hosiery that would be supported by heavy advertising and promotion. He would not have to make any room on his shelves, because a freestanding display would be provided. Not only that, the whole thing would cost him nothing. He would pay only for what he had soldafter he had collected the money. He would not even have to restock the shelves , because the Leggs sales merchandiser would do it for him. No wonder he thought this was an offer he could not refuse.




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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