From Manufacture To Product FulfillmentIt is crucial to make sure that the manufacturing inventory management software can provide not only the hot new-release titles but also a full range of other category selections. Does the supplier offer a complete selection of catalog titles? Does the supplier have relationships with all the studios, not just one or two major companies? Are music, special interest, children's, and feature films available? The success of a video sell-through program depends on more than the major box office hits. Ultimately, the section must attract customers with a quality selection of catalog titles in all categories. Even carrying previously viewed videos and public domain titles can be crucial in generating and maintaining a high level of consumer excitement and sales.
One of the most important elements to consider in setting up a video sell-through department is installing fixtures that attract consumers' attention. Because video sell-through is an impulse-driven category designed to generate incremental sales, having the right fixtures for displaying product is crucial. On the other hand, the space crunch that afflicts the supermarket industry -- where every inch is vital for maximizing sales -- makes the question of proper fixturing difficult. A superior supplier can work to custom design fixturing to fit in with both the decor and the space limitations of each store. What happens if some titles do not sell or if the program does not meet expectations in a particular store? Before signing on with a supplier, retailers should ask what the company's policy is regarding unsold merchandise. A superior program not only manages the entire program but also offers a guarantee or credit for any videos that do not sell within a specified period of time. By ensuring the program is backed by a 100% guarantee, the risk to retailers is minimized and confidence in the entire program heightened. Despite all the efforts to make a program succeed, if there is no accurate system for precisely recording sales and movement, charting the progress of the program in winning new sales is difficult. The supplier should regularly provide retailers with detailed computerized reports on what is selling on a store by store basis, how each category and price point is doing, and what is being done to maximize ongoing sales volume. Moreover, the program should include quarterly stock balance reports on the entire inventory management program, including the removal of titles that didn't sell and a credit update. Choosing the right supplier and gaining a superior level of in-store customizing service can spell the difference between generating heightened bottom-line profitability and settling for lackluster sales results. While the sales potential in video sell-through is tremendous -- and just now taking off in the supermarket industry -- one key that retailers must address is who manages the program and what will be done to fulfill the department's promise for the 2007. |