The sad fact is that new products as a rule take 95 percent of their volume from existing products in a category-representing nothing new for retailers, Miller says. As much as slotting fees may be hated by food manufacturers, the 95-5 rule provides a good argument that retailers deserve something for taking a chance on a new product. On the other hand, Miller says, truly innovative products probably deserve a break on slotting fees-through it's less clear that they always get it. Advertising quantity and quality matter. Distribution quantity and quality matter.
Innovation is essential.
Long-term support is essential. It could be the customer who sees it as a considerably easier way to shelve or the transporter who sees it as significantly easier to ship. You can have significant innovation or meaningful differentiation for any member of the value chain. They could shelve a whole case in a fraction of the time they did before,' which meant lower costs and an edge in a distribution channel where brand assortment is limited and decisions often are made based on which supplier provides the most profitable volume. Earlier this year, General Mills introduced clear plastic resealable bags for its Gold Medal flour, providing both a clear differentiation from other flour brands on the shelf and some added convenience for consumers, who no longer need to keep flour in a caniser if they don't want to.