How to Sell to Wal-Mart —
Retail Product Development List

This list is really a table of contents for a course on how to develop and sell a product to a major chain retailer. I haven't had the time to create it but I thought I'd put it here to give you an idea of all the issues you need to consider when developing and selling products to retailers.

1.  

How to Sell to Wal-Mart — Can the Little Guy Really Do It?
•  4 ways to get it done, which is best for you?
•  You can do it — even without much money.
•  Do you have an idea, an invention, a product or product line?
•  Who is your customer? It's not who you think!
•  Who is your competition? Not what you expect either!
•  How the buyer thinks and why you should care.

2.  

Are You Ready for Wal-Mart, Target and Other Mass Merchandisers?
•  Is your product appropriate for mass merchant distribution?
•  How to start in other distribution channels to prove salability.
•  Do you have an idea, an invention, a product or product line?
•  Criteria for selling the mass merchants.
•  How to sell to Wal-Mart — national & local requirements.

3.  

How To Get Started In Other Distribution Channels (Until You're Ready For The "Big-Time")
•  Will your product sell on-line? How to test it inexpensively.
•  5 criteria your product must meet to sell with direct response tv or infomercials.
•  How to evaluate your product’s direct mail or catalog potential before spending any money.
•  How to sell to independent gift, stationery, & specialty retailers.
•  Is your product suitable for the advertising specialty/premium market?

4.  

How Big Is Your Market?
•  Do you know what's on the market now that competes with your idea/product?
•  How to identify your indirect competitors.
•  How big is your market?
•  Who is your customer?
•  What changes or trends are affecting your market positively or negatively?
•  Is your product a fad or a trend — both are OK, but the strategies for success differ.

5.  

Market Evaluation and Testing — Will It Sell?
•  Market evaluation should come before product development — will it sell?
•  How to get an independent evaluation done.
•  How to do your own market research.
•  Who is your customer?
•  Why you should do in-store testing and how to do it.

6.  

Product/Idea Development
•  Do you have an idea or a product?
•  Why is it better than what is out there now? What is your USP?
•  Is your product a one-time purchase or a product that is bought over and over again?
•  The need for the "Wow" factor.
•  Is your product "on-trend"?
•  Why I recommend modifying/improving on existing products.
•  Why you need to develop a product line.
•  Inventions, patents, non-disclosure agreements.

7.  

Product Development—Fads, Fashion, In & Out Promotions
•  Life cycle of a fad or a fashion product.
•  Is your product suitable for an in & out promotion?
•  Is your product seasonal?
•  Short time fuse opportunities.

8.  

Packaging—Your In-Store Salesperson and More
•  The 8 jobs your packaging must do well.
•  Make the sale — no one else will — tips on package design.
•  Protect the product or get it back — individual packaging and case packs.
•  Meet legal requirements or you are in big trouble!
•  Retailer requirements — do these if you want retailers to stock your product!
•  The right way to do in-pack/on-pack promotions.
•  Instructions — on the package or in the dreaded instruction manual.
•  Special packaging for Costco, Sam's and other warehouse-type stores.
•  The opportunity most companies miss.
•  Different requirements for different distribution channels.

9.  

Merchandising and Displays
•  How merchandising, displays and in-store promotion can increase sales.
•  Difference between displays for independent retailers vs and mass merchants.
•  Types of displays for mass merchants; floor displays, counter, in-line fixturing, making sure your product fits what's in the stores now.
•  Clip strips, J hooks, and bolt-on displays that create new merchandising space.
•  What's a plan-o-gram?
•  Does your product need in-store servicing? And how do you get it done?
•  How do I get my product at the checkout?

10.  

Advertising and Promotion—Getting Retailers To Push Your Product and Getting People to Come Looking For It
•  Can you afford to advertise? Can you afford not to?
•  Trade advertising, consumer advertising — push vs pull.
•  Co-op advertising, flyers and supplements put out by the retailer.
•  How to know if your advertising works — you must track it!
•  Promotions to get distributors/wholesalers to push your product.
•  Placement allowances, paying for space.
•  Coupons — in ads, on-pack, in-pack.
•  How mail-in offers can build retail sales and get a mail order business started.
•  Membership clubs as a way to build traffic for the independent retailer.

11.  

Trade and Consumer Publicity — Free Advertising With Credibility
•  How to find the relevant media for your product.
•  How to write a press release.
•  Create a "Buzz."

12.  

Selling to the Retailer — How To Set Up National Distribution Using Sales Reps
•  Different types of Reps for different distribution channels.
•  How to choose your Reps.
•  Definition of territories, channels of trade, agreements.
•  Commission calculations—charge-backs for returns, bad debts.
•  When you cannot use a Rep.
•  Using a Rep to set an appointment for you.
•  Support for your Reps; your customer service staff, samples, literature, policies.
•  When selling independents use your Reps for collecting overdue receivables.

13.  

Preparation For a Sales Call On A Mass Merchant Buyer
•  Have industry specific professional literature.
•  Format and what information needs to be included on literature.
•  Definition of territories, channels of trade, agreements
•  Price lists, discounts, allowances, terms, case packs, cubes.
•  Product liability insurance.
•  Production packaged product samples—when you can use a mock-up.
•  Why your product is better than your competition for their customers.
•  Why your product is better than the competition for them.
•  Proof, case histories, prior sales results showing rate of sale in other outlets.
•  Prepare to discuss your financial capabilities to deliver on time and whenever needed.
•  EDI capabilities.
•  Your inventory levels to meet their needs if your product sells through faster than expected.
•  All required vendor forms, proof of insurance, financial statements, and product information sheets filled out in advance.

14.  

How To Get the Buyer On Your Side
•  You need to sell your product to the buyer before you can sell the consumer.
•  You must understand the buyer's job — how buyer performance is measured.
•  Trend to reduce the number of vendors — a new vendor is high risk, extra cost, and more work for the buyer — justify why you are worth it from their point of view.
•  How to sell your product to the buyer—do your homework!
•  Make the buyer a "hero."
•  Difference between a mass merchandise buyer and an independent gift shop buyer.
•  How to get the buyer to help you design your product.

15.  

Why Most New Vendors Get Turned Down (Even If They Like Your Product)—How To Prevent It From Happening To You
•  Importance of your financial condition and ability to deliver.
•  Your ability to meet their operational requirements—EDI.
•  Product not enough of an improvement over what they have now.
•  Product doesn't fit their merchandising mix.
•  Lack of a product line, only a single product.

16.  

Trade Shows
•  Each channel of trade has their own shows.
•  Designing your booth to look like a store to demonstrate merchandising of your entire line and plan-o-gram.
•  Mass merchants make the buying decision before the show, stop by your booth to finalize product mix, check merchandising, see your complete line.
•  Using reps to help staff the booth.
•  Gift shows, permanent showrooms, specialty shows.
•  Home and other consumer shows.

17.  

Financial Requirements To Be In The Game
•  Types of financing; asset based, receivables, inventory, equipment, working capital.
•  Understanding their purchase order terms—cancelable up until time of shipment.
•  Partnering with others to meet financial requirements.
•  How to find potential partners.

For More Information on How to Sell to Wal-Mart Contact:

Joe McVoy
Profitable Marketing Systems, LLC
1100 Nautilus Court
Lafayette, CO 80026
Web: www.ProfitableMarketingSystems.com
Email: Joe@ProfitableMarketingSystems.com
Phone: (720) 890-8760
Fax: (303) 604-6839

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© 2006 Profitable Marketing Systems, LLC