The challenges for suppliers
Implementing marketing strategies and enhancing distribution
Implementation of a dedicated marketing strategy is extremely important in order for manufacturers to achieve success. However, in the dynamic environment of on-the-go consumption this is not so easy.
The spaces on the retailer’s shelves are limited – and they are therefore much sought-after. What can manufacturers do in order to focus the attention of shop operators on them? How can the necessary sales environment be created and how can goods availability and distribution be enhanced? One way is to find a partner to provide support so that the manufacturer’s dedicated goals can be sustainably pursued on the floor areas of the shop operators and in the marketing process.
We focus clearly on our customers. However, as a wholesaler we also see the satisfaction of our suppliers as a top priority. We have therefore worked together with them to develop future-proof solutions to promote sales. By the same token, we make use of the comprehensive expertise in product range held by manufacturers for the benefit of our customers. We regularly exchange ideas at meetings of the Advisory Board of the Competence Center for on-the-go Consumption about the latest topics, for example the development of the filling station business. 12 selected industry representatives are members of this board.
One of these partners is Mars Chocolate, who works intensively together with Lekkerland. Close coordination and joint measures in the areas of category management, purchasing and sales allow us to join forces, and create potential for growth in the category of confectionery throughout the convenience shop.
A positive point for suppliers is provided by our wide reach and the good customer relationship, which we are continuously cultivating and expanding. For example, Lekkerland Switzerland will take over the customer base and the inventories of the Oettinger-Davidoff subsidiary Contadis in 2016 and this represents a gain of more than 2,500 points of sale.
Lekkerland’s capability to successfully create distribution points for innovative product categories has been proven more than once in the past. In 2015, Lekkerland Germany revolutionised the magazine business at filling stations by working together with publisher Neue Verlagsgesellschaft (NVG) of BurdaDirect and developing a new form of magazine subscription. Since October, 20 magazines, such as “Bunte”, “Freundin” or “Spiegel” have been supplied as voucher cards at 250 Westfalen filling stations and in 600 shops of another oil company. When customers purchase the voucher, they receive an immediately redeemable credit as a bonus in the form of a filling-station and goods voucher.
Ensuring quality and reducing complexity in the supply chain is one of our central concerns. Individual agreements in the area of procurement logistics are therefore part of our normal agenda. As early as 2011, Lekkerland Germany already launched a bespoke delivery model with Mondelēz International. Instead of driving to all 15 Lekkerland logistics centres with small quantities, Mondelēz supplies three cross-docking warehouses. We bundle the goods from several manufacturers there and distribute them to the locations. The result is that Mondelēz International has significantly reduced the number of journeys, the CO2 emissions and the administrative expenditure. At the same time, the capacity of the trucks operated by both partners is better utilised. The availability of the Mondelēz products has also increased with us. For this, the two companies received the ECR Award for particularly innovative solutions in the area of business cooperation.